Tag Archives: vehicles

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

WEC teams will transport cars by airplanes

At the beginning of the month, the first race in the FIA World Endurance Championship (WEC) was held in Bahrain, and the winner was the Porsche Penske 963 Hypercar. The next race is on April 21 in Italy and the teams are facing the problem of how to transport the cars. Until now, they did it by ships through the Red Sea and the Suez Canal, but due to frequent attacks by the Yemeni Houthis, they chose another option, transport by airplanes.

The Houthis have begun attacking all cargo ships sailing the Red Sea and will not stop doing so until Israel stops its aggression against Palestine. So far they have had several successful attacks and sinkings, although the US and British navies are in those waters trying to ensure the free transport of goods on one of the busiest sea routes in the world. This sea route is of great importance for Europe, so there are more and more frequent announcements from other European countries that they will send their navy. One of them is Denmark, which intends to protect the ships of one of the largest transport and logistics companies, Maersk.

Due to the attacks of the Yemeni Houthis, the transport ships did not arrive on time, so the Prologue test was not held in Qatar. It was concluded that air is the safest option for the teams, and in fact the only possible solution that guarantees the safety of WEC participants and the guarantee that everything will arrive in Italy on time. This has further increased the cost to the teams, which is around £250,000. It should be noted that the teams pay for the air transport of their cars.

Source: Motorsport

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