Big money: BYD spends 5 billion shipbuilding to prepare for the European market

Europe, as the birthplace of the auto industry and the world’s second largest new energy vehicle market, has become a “must fight” for domestic new energy vehicle companies in the past two years.

After all, judging from the current development of the global new energy vehicle market, the domestic market is far ahead.

At present, domestic new energy vehicle companies, including BYD, NIO, Xiaopeng, Lynk & Co, and Weipai, have all entered the European market one after another.

Not long ago, BYD, which appeared at the Paris Auto Show, has recently made a big move.

According to media reports, BYD Auto recently ordered 8 ro-ro ships with a capacity of 7,700 vehicles at a shipyard in Yantai, Shandong Province at a cost of 5 billion yuan.

As the leader of domestic new energy vehicle companies, BYD has experienced a blowout trend in sales after entering 2022. The cumulative sales volume in the first three quarters of this year reached 1.18 million units, second only to FAW-Volkswagen, becoming the second largest domestic car company in terms of sales volume.

However, compared with car companies such as Geely, Great Wall and Chery, BYD does not account for much in overseas exports.

Taking September this year as an example, among BYD’s sales data of 200,000 units, the overseas export volume of new energy passenger vehicles was less than 8,000 units.

Because of this, since the second half of this year, the pace of BYD Auto’s overseas strategy has begun to accelerate.

Among them, countries and regions such as Japan, India and Europe will become an important market for BYD in the passenger car field in the next step.

And Europe is even more important.

Because, compared with Japan and India, the new energy vehicles in the European market are far ahead in terms of both the number and the growth rate.

Previously, the European Union has made it clear that it will stop the sale of fuel vehicles in 2035. In addition, EU countries have always been in short supply in terms of oil energy, and most of the oil sources depend on Russia and the United States.

Therefore, it is urgent for EU countries to develop new energy vehicles as soon as possible.

Old European car companies, including Volkswagen, Mercedes-Benz, BMW, etc., are also accelerating their transition to full electrification.

Tesla already has a factory in Germany, and it’s also far ahead in sales.

For BYD, in order to quickly occupy a place in the European new energy vehicle market, in addition to increasing production capacity, transportation is also very important.

Some analysts believe that the main reason why BYD spends 5 billion to build its own ships is mainly because the rental of ro-ro ships in 2023 has reached as high as 125,000 to 150,000 US dollars a day.

In the view of the car quick review, although BYD’s move has invested more in the early stage, it can still save a lot of transportation costs in the long run.

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