The notable Chinese maker of electric vehicles (EVs) has demonstrated exceptional aptitude at broadening its operations to various associated fields. It fabricates not only high-grade and secure car batteries but also manages virtually all aspects of its business internally. This encompasses the creation of automotive chips and the extraction of lithium and other elements. Its incorporation of subsidiaries at every stage of the EV supply process allows the corporation to maintain lower costs, thereby offering cars at highly competitive prices.
The latest move by this business is to venture into ocean freight. The corporation is currently assembling a fleet of a minimum of eight vehicle carrier ships. These vessels’ primary role is to deliver cars produced in China’s factories to European, South American, and other global markets.
Over recent years, the company has experienced significant success and has established itself as a frontrunner in China’s EV industry. Particularly noteworthy was 2023, during which they dispensed three million electric and hybrid vehicles, representing a significant jump from just 1.8 million units in 2022. As a result, the business emerged as the number one seller of electric vehicles worldwide, outperforming Tesla in the final quarter of 2023.
Notably, the company’s export segment has seen significant expansion, with 240,000 vehicles exported in 2023, which is a massive increase from 55,000 units in 2022. This figure itself represented a leap from just 13,000 vehicles in the previous year.
One crucial challenge impeding these impressive numbers is the global shortage of vehicle carrier ships. Factors like an international shipping industry slump since 2008, the technical hurdle of making transportation greener, and pre-reserved vessels by international automakers have collectively contributed to a continuous rise in expenses to hire a ship capable of transporting Chinese EVs overseas.
Hence, Chinese entities like this company and SAIC Motor are borrowing a page from the playbook of Japanese and Korean automakers. They are building, leasing, and managing their fleets of ships. This January marked the maiden voyage of a vessel operated by the Chinese company and another run by SAIC Motor, together transporting over 10,000 vehicles destined for Europe.
