China's first car ship arrived in Germany, German media: this is a declaration of war to conquer the European market!

"This is a declaration of war to conquer the European market!" German TV said on the 27th, and now Chinese automakers are using their own freighters to ship their electric vehicles directly to Germany. BYD, China's world market leader, unloaded 3,000 electric cars on its first car freighter in the port of Bremerhaven. By 2026, China will build 200 such ships, allowing cars from China to flock to the world.

China's first ro-ro ship arrived at a German port

Premiere in Bremerhaven

The nearly 200-meter-long car-to-ro-ro ship, called BYD Explorer 1, has previously transported 1,500 vehicles to Vlissingen, the Netherlands. In the future, Bremerhaven, one of the world's largest automobile ports, will become an important hub for BYD and other Chinese cars in the European market. So far, the numbers are still manageable. Last year, fewer than 4,000 new BYD electric vehicles were registered in Germany. But the Shenzhen company's ambitions are enormous.

A spokesman for logistics service provider BLG said the first vehicles had been brought ashore since Monday, which operates a car terminal in the port of Bremerhaven. About 3000 vehicles were brought ashore during the dock, most of them electric vehicles. Explorer 1 is the first one BYD plans to use eight ships to transport cars from China to Europe in the future. The group has chartered the brand new vessel.

According to the spokesman, it will stay in the port of Bremerhaven until Thursday, from where it will travel to Zeebrugge, Belgium, and then return to China. A BLG spokesperson said it was unclear whether BYD would make regular calls to Bremerhaven in the future. "But let's assume so," she said. The Port of Bremerhaven handles more than 1.7 million vehicles every year.

Economic Weekly reports

Chery

and other companies are also building their own fleets

In recent months, it has been nearly impossible to get parking on RoRo ships, and freight rates have risen by more than 800%. There are more than 700 such ships worldwide. However, less than 100 of them are operated by Chinese companies. Moreover, only about ten were suitable for seaworthiness. That is why Chinese companies have recently found themselves forced to convert freighters, which actually transport timber, into car carriers using special steel frames.

At the same time, China's industry is working to remove this bottleneck. By 2026, Chinese shipyards will have about 200 such ro-ro vessels on their order books – about half of which will be Chinese customers. Other automakers, such as Chery, are currently developing their own fleets. The shipping company COSCO Group is also in the process of setting up one.

The study also shows that China is currently creating a huge car export capacity in its ports, such as Shanghai, Ningbo or Guangzhou. Even without new ships, China has overtaken Germany and Japan as the largest exporter of automobiles. With its patents, it has also surpassed Germany as the most innovative car manufacturing powerhouse to date.

Chinese and German brands compete in the same field

China is changing the rules of the game

One of the big changes in the European car market in 2023 is the rise of Chinese car brands. Last year, seven new brands were added to the 23 Chinese brands listed in 2022. In 2023, the number of Chinese brand cars registered reached 322,000 units, an increase of 79%, and the market share reached a record 2.6% (1.7% in 2022).

However, at present, among these 30 brands, only 8 brands have registered more than 1,000 vehicles, of which MG MG accounts for 72%. The British-derived brand, wholly owned by China's SAIC Motor, whose vehicles are designed, developed and manufactured in China, is the star of the year. MG sales more than doubled from 113182 units in 2022 to 231818 units last year. MG is the 20th best-selling brand, ahead of Cupra, Suzuki, Mini or Mazda.

German experts praise Chinese cars

China has long been committed to conquering the European electric vehicle market. There are growing signs of how serious the Chinese market leaders are. BYD rented its largest booth at the IAA trade fair in Munich last year. "Just 11 months later, we have already set up representative offices in 15 European countries," Michael Shu, head of European operations, announced there.

In Germany, BYD already has car dealerships in most major cities, with the goal of opening around 100 dealerships. In the future, 90 percent of Germans should be able to reach a BYD store within a 30-minute drive, the company said. The goal is to finish in the top five in Germany and Europe. The company's first plant in Hungary has been planned for this purpose.

A Chinese brand's boutique in Europe

The industry has its eyes on Brussels

According to the Economic Week, China's first ro-ro vessel docked in Europe is a harbinger of overtaking German automakers in the global market. BYD sold more than 3 million vehicles worldwide last year. And when Volkswagen had to cede its market leadership in China's largest electric vehicle market to BYD, another symbolic shift pointed to a new reality. For the Euro 2024 Football Championship to be held in Germany this year, the official advertising partner is no longer Volkswagen, but BYD.

Manufacturers such as BYD, Chery, Geely and NIO have been building large car factories in their countries for years. Some of them were too large to dwarf Volkswagen's models. This has created a huge overcapacity in the country, especially for electric vehicles. To export them, it currently lacks ro-ro ships.

Von der Leyen investigates Chinese cars

In the face of the global rise of Chinese automobiles, Tesla boss Elon Musk recently issued a clear warning about the victory of rivals in the Far East. Not only did he discuss their well-known lower manufacturing costs. "They're excellent," the tech billionaire explained. According to Musk's pessimistic predictions, without trade barriers, they would "almost destroy most other car companies in the world."

Although German automakers are rarely so explicit, it is clear that the industry is increasingly yearning for Brussels. The 25% U.S. import tariff still keeps Chinese suppliers out, but new protections are emerging in Europe as well. The European Commission has previously launched an investigation into accusing China of distorting competition by artificially driving down the price of electric vehicles in the European market by using unfair subsidies. If necessary, Brussels wants to respond with punitive tariffs. However, if the EU really dares to hack Chinese cars, China will definitely double its repayment. This will be a bigger blow to European automakers, which are more dependent on the Chinese market, as well as other products.