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News

BYD Plans Ten More Car-Carrying Ships as Export Ambitions Approach 2.5 Million Vehicles

BYD is no longer content to control the production of its electric vehicles, plug-in hybrids and batteries. The Chinese automotive giant is also investing heavily in the logistics required to deliver those vehicles to customers around the world. And if the latest reports from China are accurate, its maritime ambitions are about to become considerably larger.

According to reports published by maritime outlets including New Ships and Robin Assasfina, BYD has reportedly ordered ten additional car-carrying vessels to supplement its existing fleet of eight. If the plan proceeds as expected, the company could operate 18 Ro-Ro ships within the next three years, creating one of the most substantial manufacturer-owned vehicle transport fleets in the industry.

The timing is hardly accidental. BYD’s domestic market is becoming increasingly difficult, while its international business is expanding at a much faster rate. Owning the ships that carry its vehicles could give the company greater control over delivery schedules, reduce its reliance on external logistics providers and help it push further into Europe and other key markets.

Ten New Ships Could Add Capacity for 92,000 Vehicles

The reported new vessels are expected to have a capacity of approximately 9,200 vehicles each. In shipping terminology, that is measured in CEU, or Car Equivalent Units—a standard used to describe vehicle-carrying capacity.

Ten ships of that size would add approximately 92,000 CEU to BYD’s fleet. Combined with the eight existing vessels, which reportedly carry between 7,200 and 9,000 vehicles each, the manufacturer’s total single-voyage capacity could reach roughly 150,000 vehicles.

That figure alone is impressive, but the more important number is annual throughput.

BYD’s existing fleet is reported to support exports of around one million vehicles per year. With ten additional ships arriving between 2027 and 2029, the company could potentially increase its global transport capacity to more than 2.2 million vehicles annually, with some estimates placing the eventual figure closer to 2.5 million.

The precise annual capacity will depend on routes, turnaround times, port operations and other logistical factors. Nevertheless, the direction is clear: BYD is building the infrastructure required to export vehicles on a much larger scale.

BYD’s Eight Existing Ships

BYD’s maritime expansion began in January 2024, when the company started adding dedicated vehicle carriers to its fleet. The eight vessels currently associated with the manufacturer are:

  • Explorer No.1
  • Hefei
  • Changzhou
  • Shenzhen
  • Xi’an
  • Changsha
  • Zhengzhou
  • Jinan

These are Ro-Ro, or roll-on/roll-off, ships. Unlike conventional container shipping, Ro-Ro vessels allow cars to be driven directly onto the ship and secured across multiple decks. That makes them particularly suited to transporting large volumes of finished vehicles.

For BYD, the strategy is about more than simply owning ships. It is about controlling another critical part of the automotive supply chain.

Domestic Sales Are Falling, but Exports Are Rising

BYD’s shipping investment comes at a time of significant change in its business.

According to the figures supplied, the company’s domestic sales in China fell by 43 percent year over year, to approximately 1.15 million vehicles. At the same time, exports surged by 88 percent, reaching around 1.12 million vehicles.

Those figures put domestic sales and overseas deliveries surprisingly close together. They also highlight how important international markets have become to BYD’s growth strategy.

The reported export total represents approximately 35.4 percent of all Chinese vehicle exports, including both battery-electric and plug-in hybrid models. Deutsche Bank estimates cited in the supplied material suggest BYD could export between 1.9 million and 2.2 million vehicles in 2026, nearly double the previous year’s figure.

Other industry analysts reportedly believe BYD could exceed 2.5 million exports by 2027.

If those projections are accurate, the company’s shipping fleet is not merely a logistical convenience. It is a strategic necessity.

Why BYD Wants Its Own Ships

The global automotive industry has experienced significant logistics disruption in recent years. Vehicle manufacturers have faced shortages of transport capacity, higher shipping costs and delays caused by geopolitical tensions.

The supplied reports also point to maritime constraints linked to the conflict involving Iran, which have complicated international shipping routes.

By owning its own car carriers, BYD can potentially reduce exposure to those disruptions. It can plan vessel deployment around its production schedules, prioritize strategic markets and reduce dependence on third-party shipping companies.

There is also a commercial advantage. Exporting vehicles can offer higher profit margins than selling them in China, where intense competition and an ongoing price war continue to pressure manufacturers.

That makes the shipping fleet part of a broader strategy: produce the vehicles, build the batteries, develop the charging technology and increasingly control the process of getting the finished cars to customers.

Europe Is the Next Major Battleground

Europe remains one of BYD’s most important international targets. The company has expanded its model range across the continent, offering electric and plug-in hybrid vehicles in a growing number of markets.

However, importing vehicles from China comes with additional costs. The supplied text states that BYD-made vehicles imported into Europe currently face an additional 17 percent tariff, although the exact applicable rate can vary by model, production origin and trade classification.

That is why BYD’s planned European production is so significant.

The company is reportedly approaching mass production at its factory in Hungary, which would allow it to manufacture vehicles within the European market and avoid the additional tariff applied to China-made imports.

Local production could also shorten supply chains, improve delivery times and make BYD more competitive against established European, Japanese and Korean manufacturers.

BYD’s Expansion Goes Beyond Electric Cars

Although BYD is best known internationally for its electric vehicles, its business is considerably broader.

The company develops and manufactures its own batteries, including technologies used in its Blade Battery platform. It is also investing in ultra-fast charging infrastructure, an area that could become increasingly important as charging speeds improve and electric vehicle adoption expands.

The addition of a large vehicle-carrier fleet completes another part of that vertically integrated strategy.

BYD is attempting to control more of the journey from raw materials and battery production to vehicle assembly, charging technology and international delivery. Few automakers have pursued that level of integration with such speed.

A New Kind of Automotive Power

The reported order for ten additional Ro-Ro ships illustrates how dramatically BYD’s ambitions have changed.

The company is no longer operating solely as a Chinese automaker exporting vehicles when shipping capacity is available. It is building a dedicated global distribution network designed to support millions of vehicles per year.

If the reported expansion goes ahead, BYD could have 18 car-carrying ships in service by the end of the decade’s early years, with a transport capacity approaching 2.5 million vehicles annually.

That would give the company greater control over its international growth at precisely the moment when its domestic market is becoming more challenging.

For European automakers, the message is straightforward: BYD is not simply bringing more cars to the market. It is building the industrial and logistical infrastructure to keep doing so at a much larger scale.

Source: BYD

News

Audi A2 e-tron Production Begins in Ingolstadt as Audi Targets a More Efficient Electric Future

Audi has started production of the new A2 e-tron at its Ingolstadt headquarters, introducing a new electric model while transforming the way its vehicles are developed and manufactured. The compact EV is being built alongside the Audi A3, using existing facilities and a production strategy designed to reduce complexity, increase automation and improve efficiency.

Audi has officially begun production of the A2 e-tron in Ingolstadt, marking an important milestone for the German automaker’s electric-vehicle strategy. The first examples of the new model rolled off the assembly line in the presence of Markus Söder, Minister-President of Bavaria, as Audi highlighted not only the vehicle itself but also the industrial transformation behind it.

According to Audi, the A2 e-tron is the company’s most efficient vehicle to date, reflecting a broader effort to develop cars faster, simplify production and strengthen the competitiveness of its German manufacturing operations.

Audi A2 e-tron development shortened by 21 months

One of the most significant changes behind the new electric model is the reduction in development time. Audi says the period from the beginning of development to production readiness was 21 months shorter than in previous vehicle projects.

The company attributes this improvement to experience gained from earlier launches, streamlined processes and more efficient coordination between development and manufacturing teams. These changes allow the vehicle to reach a higher level of maturity earlier in the pre-series production phase.

For Audi, the significance extends beyond a single model. Shorter development cycles could help the company respond more quickly to changing customer preferences and market conditions while reducing the time and resources required to bring new vehicles to market.

A2 e-tron production focuses on reducing complexity

Audi has also taken a different approach to production complexity. The A2 e-tron combines what the company describes as a high level of customer benefit with significantly fewer production-relevant part numbers.

That reduction has a direct effect on the factory floor. Fewer parts mean fewer logistics supermarkets, less space required for material storage and simpler supply processes within the plant. In theory, the result is a production system that is easier to manage and less expensive to operate.

The strategy is particularly relevant as automakers attempt to make electric vehicles more profitable. While EV technology continues to evolve rapidly, manufacturing efficiency remains a critical factor in determining whether a model can compete successfully in a global market.

Audi introduces “string-of-pearls” production in Ingolstadt

For the first time at the Ingolstadt plant, Audi is applying its “string-of-pearls” production principle, a system already used successfully at the company’s Neckarsulm facility.

Under this approach, the sequence of customer orders is determined six days before assembly begins and then maintained across the various production areas. This allows suppliers to produce and package components in the correct order, reducing the need for additional sequencing work inside the factory.

Audi says the system also eliminates certain storage and sequencing areas, improving the cost-effectiveness of production. The fixed sequence is intended to reduce process complexity while ensuring that the right parts arrive at the right station at the right time.

It is a relatively simple concept, but one with potentially significant consequences for a modern vehicle factory, where thousands of components must move through multiple stages without disrupting the assembly process.

A2 e-tron and Audi A3 share body production facilities

The new electric model is being manufactured using Ingolstadt’s flexible production infrastructure. Audi says the A2 e-tron body is produced together with the bodies of the Audi A3, demonstrating how existing facilities can be adapted to support different vehicle types.

This approach allows Audi to introduce the new EV without building an entirely separate production system. More than 1,200 production components, including robot welding guns, are being reused or put to further use. Around 250 robots that have already been used to manufacture other Audi models are also being redeployed.

The strategy reflects a broader industry trend: rather than relying exclusively on new factories and dedicated equipment, automakers are increasingly looking for ways to extract more value from existing production assets.

Fully automated wheel installation arrives at Ingolstadt

Audi is also introducing new automation technology to the A2 e-tron production process. In the chassis preassembly area, fully automated robot stations are replacing the previous semi-automated bolting stations used for front and rear axle wheel installation.

The move is intended to improve consistency and reduce the physical demands of repetitive assembly work. It also demonstrates how Audi is gradually increasing automation in areas that were previously dependent on a combination of machinery and manual intervention.

However, the company’s production strategy is not based on automation alone. Audi emphasizes that technology is being introduced to support employees, rather than eliminate the importance of their expertise.

AI-powered “bin picking” improves body shop efficiency

In the A2 e-tron body shop, Audi is introducing “bin picking”, a system that uses image processing and camera-guided robot control to identify and pick up components.

The technology allows robots to recognize parts in disordered containers and select the correct component for the next stage of production. For the first time at the Ingolstadt site, robots can also remove small sheet-metal components directly from mixed containers and feed them into the production process.

This could reduce the need for employees to perform ergonomically demanding tasks while improving the flexibility of automated production. It is another example of how Audi is combining robotics with intelligent software to make manufacturing more efficient.

Industrial cloud eliminates more than 450 PCs

Digital networking is another central element of the A2 e-tron production launch. Audi is using its Edge Cloud 4 Production industrial cloud to support assembly operations at the Ingolstadt plant.

The system centrally controls the Universal Test System, which is used to commission the A2 e-tron’s control units, as well as “operator guidance,” which provides employees with information about vehicle customizations.

Audi says this approach eliminates the need for more than 450 industrial PCs in assembly. Instead of relying on separate computing systems at individual workstations, the factory can use a centrally managed digital infrastructure.

The result is a more connected production environment, with information and processes managed through a common platform.

Audi expands AI assistants across its factories

The company is also introducing AI-supported knowledge assistants across its production sites. One example is the Supply Chain Chatbot, which helps employees search for expert knowledge, processes and documentation.

A separate Maintenance Chat assists maintenance teams with fault analysis and finding solutions to technical problems. These tools are designed to make information easier to access, potentially reducing the time required to diagnose issues and resolve production-related challenges.

Audi’s approach illustrates how artificial intelligence is beginning to move beyond vehicle features and into the industrial systems that manufacture those vehicles.

Employee training remains central to the A2 e-tron launch

Despite the emphasis on automation and digitalization, Audi says the successful production launch of the A2 e-tron depends heavily on its workforce.

The company introduced a multistage qualification program combining hands-on training with virtual learning. Employees were prepared for the requirements of manufacturing the fully electric model through practical assembly-line modules and digital training, including virtual assembly exercises on a screen.

Audi says the program strengthens electromobility expertise at Ingolstadt and helps preserve knowledge that will be important for future production projects.

That focus is increasingly important as automakers transition from combustion engines to electric vehicles. New powertrains require different technical knowledge, while modern factories demand greater familiarity with software, high-voltage systems, robotics and digitally connected production processes.

A2 e-tron strengthens Audi’s Ingolstadt headquarters

The start of production is also significant for Ingolstadt as Audi’s central manufacturing location. The company says the A2 e-tron strengthens core capabilities at its headquarters and supports the long-term transformation of the plant.

Audi General Works Council Chairman Jörg Schlagbauer said the workforce had fought since 2019 for an entry-level electric model to be developed and built in Ingolstadt. He described the production launch as a result of the commitment and expertise of Audi employees.

Plant Manager Siegfried Schmidtner similarly emphasized the experience gained from previous product launches, saying the team had used that knowledge to optimize processes and prepare for a successful ramp-up.

The message from Audi is clear: the A2 e-tron is not simply another new EV. It is also a test of whether the company can make its existing industrial network more flexible, efficient and competitive.

Markus Söder: “Bavaria knows cars”

The production launch also drew strong political support from Markus Söder, who described the start of A2 e-tron production as an important signal for Ingolstadt and Bavaria’s automotive industry.

“Bavaria knows cars: Production of Audi’s new A2 e-tron has begun at Audi’s beating heart in Ingolstadt. With the most efficient Audi ever, the motto ‘Vorsprung durch Technik’ rings true once again!”

Söder also stressed the importance of innovation, high technology and German engineering, arguing that the automotive industry must remain competitive globally and that market forces should play a greater role in determining automotive technology.

His comments underline the broader economic significance of the project. Audi’s Ingolstadt plant is not only a manufacturing facility but also a major center of employment, engineering and industrial expertise.

Audi A2 e-tron represents a broader production transformation

Audi CEO Gernot Döllner described the A2 e-tron as the next step in the company’s renewal, emphasizing that the model was developed for Europe and is manufactured in Ingolstadt.

“The A2 e-tron was developed for Europe and is manufactured in Ingolstadt. It is the most efficient Audi we have ever built, and it makes electric mobility suitable for everyday use.”

Döllner also highlighted the importance of thinking from the market backward, recognizing that different regions require different solutions. For Audi, the A2 e-tron is intended to demonstrate how faster development and more efficient production can strengthen industrial value creation in Germany.

Production and Logistics Board Member Gerd Walker added that the model shows how Audi is transforming its factories through reduced complexity, greater digitalization and increased automation.

What the Audi A2 e-tron production launch means

The start of production in Ingolstadt marks an important step in Audi’s electric-vehicle strategy, but its broader significance lies in the manufacturing methods behind the car.

The A2 e-tron brings together:

  • 21 months less development time compared with previous vehicle projects.
  • Reduced production complexity and fewer production-relevant part numbers.
  • String-of-pearls production sequencing for improved logistics.
  • Shared body production with the Audi A3.
  • More than 1,200 reused production components and approximately 250 redeployed robots.
  • Fully automated wheel installation in chassis preassembly.
  • AI-supported bin picking in the body shop.
  • Industrial cloud networking that eliminates more than 450 assembly PCs.
  • AI knowledge assistants for supply chain and maintenance teams.
  • Hands-on and virtual training to strengthen workforce expertise in electromobility.

Together, these changes represent Audi’s attempt to make electric-vehicle production more efficient without abandoning the capabilities of its existing plants.

Source: Audi

News

Chery Plans Four New UK SUVs and British R&D Centre

Chery is preparing its next major expansion in the UK, with four new or updated SUVs planned for 2027, a new Tiggo X family and a research and development centre at the UTAC Millbrook Proving Ground in Bedfordshire. The Chinese automaker says the move will help it build cars better suited to British roads while challenging established mass-market brands such as Volkswagen.

The announcement comes as Chery marks its first full year of UK sales. During that period, the brand has sold approximately 29,000 vehicles. Although that figure trails its sister brands Jaecoo and Omoda, Chery UK managing director Farrell Hsu says the company has already exceeded its sales target for 2026.

Hsu’s ambition is considerably larger than simply establishing a foothold in Britain. He wants Chery to become a mainstream manufacturer capable of competing with Volkswagen and other established “people’s car” brands.

“We want to challenge brands such as Volkswagen,” Hsu said, outlining a strategy focused on reaching the mass market rather than remaining a niche alternative.

Four New SUVs Will Expand the Chery UK Line-Up

Chery currently sells the Tiggo 4, Tiggo 7, Tiggo 8 and Tiggo 9 SUVs in the UK. The models compete across segments occupied by vehicles such as the Ford Puma, Volkswagen Tiguan and Skoda Kodiaq.

The next stage of the company’s strategy will see four new or updated SUVs arrive in 2027. One of those models will be electric, while the others are expected to broaden the range with new body styles, powertrain options and a more lifestyle-oriented approach.

The name of the new family has not yet been finalised, but Chery is expected to introduce a Tiggo X range. The first model could be closely related to the Tiggo X SUV unveiled at the Beijing motor show.

Positioned as Chery’s new flagship, the Tiggo X is a large, approximately 5.0-metre-long, seven-seat SUV with a boxy design and plug-in hybrid powertrain. Chinese media reports suggest it could produce a combined 476bhp and 465lb ft of torque, with an electric-only range of around 124 miles on the more generous CLTC testing cycle.

Those figures remain subject to confirmation for the UK market, but they indicate the direction Chery is taking with its flagship SUV: substantial dimensions, strong performance and the ability to cover many daily journeys using electric power alone.

Details of the other Tiggo X models remain undisclosed. However, Hsu suggested that the family will offer a distinctly different character from the existing Tiggo 4, 7, 8 and 9.

“They will bring a different feeling,” he said, describing the new models as having a “lifestyle” focus. That could mean more distinctive, boxier styling, increased practicality and some light off-road capability.

Chery Wants Its Cars to Feel More European

Expanding the model range is only part of Chery’s UK strategy. The company also wants to make its vehicles better suited to local driving conditions, and its new Bedfordshire R&D centre will play a central role in that effort.

Initially, the facility will operate as what Hsu called a “translation centre”. Its job will be to gather feedback from British customers and automotive media, then convert that information into practical engineering changes that Chinese development teams can implement.

That process will cover steering, chassis tuning and advanced driver assistance systems. British roads present a different challenge from those in China, with tighter lanes, more frequent bends and road surfaces that can be considerably less forgiving.

“We will test everything and then tell HQ what they need to do,” Hsu explained.

The Millbrook facility should allow Chery to evaluate modifications more quickly, including changes to dampers, suspension bushings and software calibrations. Rather than relying solely on feedback from overseas markets, engineers will be able to test adjustments locally and determine whether they deliver the desired improvements.

The goal is not simply to make Chery vehicles comfortable on British roads. Hsu also wants them to develop the driving character associated with German competitors.

“So many people like the German feeling; cars that drive like a German car,” he said. “It really gives them a very good impression. This is something we need to learn.”

That statement reflects a pragmatic approach from a manufacturer still building its reputation in Europe. Chery is not claiming to have mastered every aspect of the market. Instead, it is using local engineering expertise to understand what British buyers expect from the steering, suspension and overall behaviour of a modern family SUV.

Millbrook Could Influence Chery’s Global Cars

Although the Bedfordshire centre is being established to support the UK market, its influence could eventually extend much further.

The UK has considerable expertise in autonomous driving, artificial intelligence and vehicle development. Chery believes the knowledge gained through its British operations could eventually help shape products sold in other countries.

The same engineering improvements will also benefit Chery’s sister brands, including Omoda, Jaecoo and Lepas. That gives the Millbrook project significance beyond the Tiggo range, potentially allowing the wider group to develop a more consistent understanding of European driving preferences.

For now, however, the priority is straightforward: make Chery vehicles feel more natural and convincing on British roads.

Plug-In Hybrids Are Central to Chery’s UK Strategy

Chery’s rapid expansion will also depend heavily on its plug-in hybrid technology. Hsu said the company’s “Super Hybrid” PHEVs account for approximately three quarters of its UK business to date.

That strong proportion suggests British buyers are responding to the combination of electric driving capability and the flexibility of a combustion engine. Hsu also implied that supply, rather than a lack of customer interest, has been a limiting factor in the company’s sales performance so far.

His longer-term vision is even more ambitious: every Chery model could eventually be offered with the company’s plug-in hybrid powertrain as standard, with customers choosing the battery size and therefore the electric range that best suits their needs.

Hsu compared the idea to selecting the storage capacity of a new iPhone. Instead of choosing between entirely different powertrains, buyers could select the battery capacity that matches their driving habits and budget.

That approach would give Chery a consistent electrified strategy across its range while allowing it to serve customers with different requirements. A smaller battery could suit buyers who mainly drive short urban journeys, while a larger pack would appeal to those seeking greater electric range and reduced reliance on petrol.

Chery’s Next Challenge Is Turning Momentum Into Trust

Chery’s first year in Britain has delivered a solid starting point, but the company’s next phase will be more demanding. Four new or updated SUVs, a new Tiggo X family and a dedicated British development centre represent a significant increase in ambition.

The brand’s success will depend on more than competitive pricing and equipment levels. It will need to demonstrate that its vehicles can deliver the refinement, driving dynamics and local suitability expected by British buyers.

The Millbrook project could prove especially important in that regard. By bringing British feedback directly into the engineering process, Chery hopes to shorten the distance between its Chinese development headquarters and the requirements of the UK market.

If the company can combine that local expertise with its expanding SUV range and increasingly important plug-in hybrid technology, it may have a credible route toward the mainstream.

For now, Chery’s message is clear: the UK is no longer simply a market in which it wants to sell cars. It is becoming a place where the company intends to learn how to build better ones.

Source: Chery, Autocar