Guangzhou Shipyard has begun construction on the first of 2 vehicle carriers for BYD, capable of carrying up to 7,000 vehicles.

(Image credit: Guangzhou Shipyard)

A Chinese shipyard has begun construction on a vehicle carrier for BYD (OTCMKTS: BYDDY), as the Chinese new energy vehicle (NEV) maker steps up its efforts to tap international markets.

Guangzhou Shipyard International Company Limited began construction of the first ship of a project to build dual-fuel pure car/truck carriers (PCTCs) for BYD on November 6 in Nansha, Guangzhou, the China State Shipbuilding Corporation subsidiary announced yesterday.

In the project, Guangzhou Shipyard will build two vessels for BYD, each capable of carrying up to 7,000 vehicles, according to a statement from the shipbuilder.

The vessel will be 199.9 meters long, with a beam of 38 meters, a design draft of 9 meters and a design speed of 18.5 knots (34.26 kilometers per hour), according to the statement.

It can be powered by liquefied natural gas (LNG) or fuel oil and, for the first time, is equipped with a battery system and energy-saving devices, Guangzhou Shipyard said.

On January 23, Guangzhou Shipyard said it received an order for two PCTCs from BYD, months after rumors circulated that BYD had ordered car carriers.

The order, BYD's first for a car carrier as the ultimate cargo owner, will guarantee a stable supply of transportation capacity for BYD's NEV exports, Guangzhou Shipyard said at the time.

On July 29, 2022, Xinde Marine News, a maritime information service platform, reported that BYD will buy six and up to eight LNG dual-fuel PCTCs capable of transporting 7,700 vehicles, which they expect to deliver from 2025 onwards.

In another report last November 27, Xinde Marine News said BYD would first order two 7,000-CEU PCTCs at Guangzhou Shipyard and was in contact with other shipyards for the remaining shipbuilding orders.

The NEV maker's ordering of car carriers is due to a significant rise in demand for marine transportation -- especially ocean-going car ro-ro business -- as exports surge, the report noted.

On October 29 last year, local media outlet Caixin, citing several sources, said an affiliate of BYD would order eight ro-ro vessels with a capacity of 7,700 cars at a shipyard in Yantai, Shandong province, at a total cost of nearly RMB 5 billion yuan ($686 million).

BYD is expanding overseas, bringing models including the Atto 3, Dolphin, Seal, Han EV and Tang EV to several markets.

The company sold 301,833 NEVs in October, the first time it has surpassed the 300,000-unit mark.

In October, BYD sold a record 30,521 NEVs in overseas markets, up 220.3 percent from 9,529 in the same month last year and up 8.85 percent from 28,039 in September.

In the January-October period, BYD sold 176,041 NEVs overseas, up 919.64 percent year-on-year.

($1 = RMB 7.2847)

BYD orders 2 vehicle carriers from local shipbuilder Guangzhou Shipyard International