China’s BYD is expanding its fleet of car-carrying cargo ships to meet growing export demands. The electric vehicle maker plans to increase its fleet from eight to 18 ships by 2029, with each new carrier capable of transporting around 9,200 cars.
A Strategic Move to Cut Costs and Boost Exports
This expansion could significantly reduce BYD’s shipping costs. According to industry estimates, owning its fleet may lower the cost to ship each car abroad by up to 40% compared to renting carriers. This move positions BYD to strengthen its presence in global markets, intensifying competition with rivals like Tesla and traditional U.S. brands.
The company’s decision to invest in its shipping fleet followed founder Wang Chuanfu identifying a shortage of shipping capacity for exports. In 2022, BYD announced a $687 million plan to build its own car carriers. Between January 2024 and September 2025, it introduced eight car carriers into service.
Global Trade Route Challenges
Conflicts in the Red Sea and around the Strait of Hormuz have disrupted trade routes, pushing up freight costs. Renting a car carrier now costs $95,000 a day, up from $50,000 in February. BYD’s fleet expansion aims to cushion against these rising costs and provide greater control over shipping routes and schedules.
With BYD targeting sales of over 2.5 million cars overseas next year, owning a fleet offers strategic advantages. Andrea De Luca, a maritime analyst at Veson Nautical, notes that owning ships allows carmakers to save on chartering costs, prioritize key markets, and reduce dependence on volatile charter markets.
The company’s focus on logistics extends beyond cost savings. Its carriers are specially configured for EVs and plug-in hybrids, and most run on liquefied natural gas to comply with stricter port regulations.
As BYD continues to expand globally, its shipping investment reflects a broader strategy to dominate the EV market. While domestic sales in China have slowed due to reduced tax incentives, BYD’s exports are rising, with 180,700 cars sold outside China in September—nearly 40% of its monthly total sales.
Chinese carmakers like Geely and Chery are also investing in shipping capabilities, but BYD’s early move gives it a head start. According to Lei Xing, founder of AutoXing, owning a fleet is a natural step for a company exporting millions of cars amid global instability.
BYD ships only EVs and plug-in hybrids, which need specially configured carriers, and most of its fleet runs on liquefied natural gas as ports tighten green-fuel rules, he said. Rival Geely began running its first car carrier in 2025, on a long-term charter from London-based shipowner Zodiac Maritime. Chery set up a venture with Wuhu Shipyard in 2023 to build car carriers for its own fleet in eastern China. Lei Xing said, “Geely, on the other hand, will be running its own ships eventually.”
Chinese EV Makers Shift Focus to Exports Amid Domestic Slowdown
Chinese electric vehicle (EV) manufacturers are increasingly turning to overseas markets as domestic sales face headwinds. After the government reduced tax incentives for buyers, industrywide sales of EVs and plug-in hybrids in China dropped 12% in the first eight months of the year. BYD, a leading Chinese carmaker, experienced a 33% decline in domestic sales during the same period.