Tag Archives: China

News

BYD ordered 7 new cargo ships

The largest Chinese car manufacturer, BYD, became one of the top 10 largest manufacturers in the world last year with 3,024,417 vehicles produced. In an effort to expand its business outside of China, their first target is the European market, where they are lagging behind the competition. In order to meet the goals and the increasing demand, the speed of transporting cars to Europe is needed, and for this reason, BYD ordered 7 new cargo ships.

The development of the automobile industry in China is expanding, primarily fully electric vehicles, which are killing competition worldwide with low production costs and subsidies provided by the Chinese government. Thanks to that, in 2023 China became the world’s largest car exporter with 4.91 million vehicles. That is one million vehicles more than Japan, which was the world’s largest exporter for decades.

BYD currently owns one transport ship (BYD Explorer No.1) built by a local company, whose capacity is 7,000 cars. That is not enough, so the additional 7 ships will help this Chinese giant to transport its cars around the world faster. Currently, Chinese companies own less than 50 car cargo ships, and their combined capacity is less than 150,000 vehicles. In comparison, Japanese companies have ships that can transport 1.6 million vehicles.

How serious a player BYD is is also shown by the fact that it invests 14 billion dollars in the development of advanced technology, especially the ADAS system, which will make its cars safer on the road. The company also invests in marketing, thus becoming an official partner of UEFA Euro 2024, which will be held in Germany this summer.

Source: Reuters

News

EU introduces additional tariffs on vehicles from China

In September 2023, European Commission President Ursula von der Leyen announced that the EU is launching an investigation into the privileged position of electric vehicles produced in China due to subsidies. The investigation showed that the Chinese government subsidized cars exported to Europe in various ways, and in response the EU is considering the introduction of additional tariffs.

For a long time, Europe was looking for a way to protect domestic producers. Some suggested joining forces against the Chinese, such as the head of the Renault Group, Luca de Meo. It seems that the temporary decision on additional tariffs is the EU’s first move to protect domestic producers.

According to Automotive News Europe, the temporary tariff rates would apply from July, and European importers must report imports of Chinese electric vehicles through customs registrations. This means that retroactive customs clearance is inevitable.

The investigation also showed that imports from China increased by 14 percent (177,839 vehicles) compared to 2022, and if it continues, it is not doubtful that it could negatively affect employment and overall production. The Chinese Chamber of Commerce in the EU said it was disappointed by the decision and that the increase in imports was a reflection of the growing demand for electric vehicles.

Manufacturers are trying to resist the increasingly rapid Chinese conquest of the European market, and one of the ways is to continue producing cars with internal combustion engines. In February, Luca de Meo stated that Europe is facing major challenges and that the alienation and disorientation of the European automotive industry will lead to a structural trade deficit for Europe. He also warns that the phase-out of internal combustion engines, which is planned for 2035, could mean a decrease in the competitiveness of the European car industry. According to him, ICEs have been a protective barrier for Europeans for years, and now with the development of electric cars and the increased need for batteries, that protection is disappearing because the Chinese control 75 percent of global battery production.

Mercedes and Škoda have already announced that they will not give up ICE as long as there is demand. Other companies are expected to follow this path as well.

Source: Automotive News Europe

News

China is the world’s largest car exporter

Japan has been the world’s largest car exporter for decades, but it was only a matter of time before another Asian giant (China) took over that position. This happened in 2023 when, according to official data, China exported one million cars more than Japan.

The development of the automobile industry in China is expanding, primarily fully electric vehicles, which are killing competition worldwide with low production costs and subsidies provided by the Chinese government. This has led large manufacturers to find partners in China or open their own plants, and increase competitiveness in the world market. “If you can’t beat them, join them.”

China has become a big “problem” for most developed countries that are trying to protect their own car manufacturers. Some of them, like the French one, canceled subsidies on new electric cars produced in China, in order to protect domestic manufacturers. This is also expected from other EU members. According to Bloomberg Intelligence, if the other members adopt the same decision, it could threaten the import of electric cars and small commercial vehicles in the amount of almost 7 billion dollars. The fact that in 2023 it exported 5.26 million vehicles, excluding exports to the USA, shows how serious the success of the Chinese industry is. Chinese manufacturers exported the most cars to Russia and Mexico, but also to Europe.

When it comes to the domestic market, sales of fully electric cars increased by 21% while sales of plug-in hybrid cars increased by 83%. The leader is BYD with 3,024,417 vehicles, making this company one of the top 10 largest car manufacturers in the world. The second largest manufacturer was Chery with 1.88 million cars, while the third was Geely with 1.62 million vehicles. Also, in Q4 of last year, BYD surpassed Tesla in terms of sales of battery vehicles.

Source: Reuters