According to Caixin.com, it was learned from multiple sources that BYD affiliated companies will order 8 ro-ro ships with a capacity of 7,700 vehicles at a shipyard in Yantai, Shandong. It is an option order, and the total cost is close to 5 billion yuan. In response to the above reports, BYD has not yet responded.
Sea shipping is the main channel for automobile exports, and the ro-ro carrier is the main carrier. Usually, relatively cheap sea freight is preferred for cross-ocean transportation of automobiles. However, the container transportation method imposes strict restrictions on the size of automobiles and is troublesome for loading and unloading. Greatly improve the efficiency of loading and unloading.
However, rising freight rates for car roll-over ships is the main reason why BYD may build ships. According to data from shipping big data company VesselsValue, the car ro-ro rental was $55,000/day in May, and the price was raised to $100,000/day in August. Dan Nash, an analyst at VesselsValue, a shipping big data company, predicts that car ro-ro freight will continue to grow in the second half of the year, and the ro-ro rental will reach US$125,000/day in 2023, and may even reach US$150,000/day (more than 1 million RMB). ) high.
Why is the car carrier market so hot? First, China’s auto exports have grown rapidly. According to data released by the China Association of Automobile Manufacturers, auto companies exported 2.117 million vehicles from January to September this year, a year-on-year increase of 55.5%. Among them, the top five OEMs in terms of export volume are SAIC (610,000 units), Chery (310,000 units), Changan (194,000 units), Dongfeng (171,000 units), and Tesla (165,000 units). Compared with the data of the German Automobile Manufacturers Association, Germany exported a total of 1.91 million vehicles from January to September, and China surpassed Germany to become the world’s second largest automobile exporter, second only to Japan.
Second, the demand for electric vehicles is growing rapidly, and electric vehicles need to occupy more space and DWT on ro-ro ships, which means that under the same transportation volume, more ro-ro ships are needed to carry electric vehicles. According to data from the China Automobile Association, in 2021, my country’s electric vehicle exports will account for about 1/3 of the world’s total, making it the world’s largest exporter of new energy vehicles. In the first three quarters, my country exported 389,000 electric vehicles, a year-on-year increase of more than 100%. The China Association of Automobile Manufacturers expects that, under the continued effect of policies to stabilize the economy and promote consumption, automobile production and sales will continue to maintain rapid growth in the fourth quarter. China Automobile Synergy said that at this stage, the international environment is more complicated, and the impact of changes in external situations is still very uncertain. The foundation of the domestic economic recovery is still not solid and needs to be strengthened, and the auto market also needs to continue to be boosted by policies.
On the one hand, it is the rising cost of shipping, and on the other hand, it is crazy to deploy overseas markets. BYD Shipbuilding is not surprised. On July 11, ATTO 3 (BYD Yuan PLUS), a compact SUV based on BYD e-platform 3.0, was officially launched in Singapore, making its debut in ASEAN countries. On July 21, BYD Yuan PLUS, Dolphin and Seal three new energy vehicles were released in Japan, announcing their decision to officially sell new energy passenger vehicles in the Japanese market from January 2023, which will be released in the Japanese market next year. On August 8, BYD and REVER Automotive held a brand press conference in Bangkok, announcing its official entry into the Thai passenger car market. On September 8, BYD signed a contract with WHA Weihua Group Volkswagen Co., Ltd. to invest in the construction of BYD’s first overseas production base for passenger vehicles. It is expected to start operation in 2024 with an annual production capacity of 150,000 vehicles. On October 10, BYD held a launch conference for Yuan PLUS in Laos.
Not only the Asian market, but also the European market layout is also underway. On August 1, BYD announced that it will cooperate with European dealer group Hedin Mobility to officially enter the Swedish and German markets. The first batch of vehicles will be delivered in the fourth quarter of this year. On August 3, BYD announced to cooperate with Israel’s Shlomo Automobile Company, which will provide sales and services of new energy vehicles in the region as a dealer. On October 7, BYD announced that it signed a cooperation agreement with SIXT, a car rental company. SIXT will purchase at least 100,000 new energy vehicles from BYD in the next 6 years. The vehicles will be delivered in the fourth quarter of this year. The first phase of cooperation markets include Germany, UK, France, Netherlands. So far, BYD’s overseas passenger vehicle layout has spread across Europe, Latin America, the Middle East, East Asia and Southeast Asia and other markets.
The latest financial report shows that in the third quarter, BYD achieved a net profit of 5.716 billion yuan, a year-on-year increase of 350.26%, and the accumulated net profit in the first three quarters was 9.311 billion yuan, a year-on-year increase of 281.13%. In other words, BYD’s 5.1 billion shipbuilding is only a quarter’s net profit, but 5.1 billion is invested in the future, and the value it will generate is definitely much higher than “5.1 billion”.
At the moment when automobile transportation capacity is tight and freight rates are soaring, as China’s largest automobile group, it has cooperated with shipping companies for many times.
On October 9, Shanghai Automotive Industry (Group) Co., Ltd. and China COSCO Shipping Group Co., Ltd. signed an agreement. COSCO Shipping Group plans to transfer 5.00% of its holding company, COSCO Shipping Holdings Co., Ltd., through free transfer. The shares were transferred to SAIC Motor Corporation, and SAIC Motor Corporation planned to transfer its 5.82% shares of SAIC Motor Corporation Limited to COSCO Shipping Group for free. SAIC Group said that the free transfer will help promote the deep integration and development of advanced manufacturing and modern service industries, and deepen business synergy and strategic cooperation with COSCO SHIPPING, especially in the fields of vehicle and parts logistics, international operations, etc. It will provide the company with a more stable strategic resource guarantee for the industrial chain, and expand the market space for the company’s new energy vehicle products to enter the logistics and transportation industry.
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