Chinese vehicle maker BYD is set to become a shipowner with an order for two pure car/truck carrier newbuildings at a domestic shipyard.

The Shenzhen-headquartered automaker has struck a deal with state-owned Guangzhou Shipyard International (GSI) for the LNG dual-fuel 7,000-ceu vessels, according to shipbuilding sources.

They said the pair forms part of the eight-ship fleet that BYD is looking to own.

It is said to be in contact with other shipyards over the remaining newbuildings. China Merchants Jinling Shipyard in Yangzhou, China Merchants Heavy Industry Jiangsu and Zhejiang-based Yangfan Group were named as yards that BYD has approached.

“It is looking at two different size of vessels — the 7,000 ceu and the 9,200 ceu,” one source said.

Officials at GSI and BYD were not available for comment.

The price for the two 7,000-ceu PCTCs was not disclosed. But shipbuilding brokers think each ship would cost between $90m and $93m. Delivery was suggested to be in 2025.

News of BYD joining the red-hot car carrier segment was first reported in August. The reason given for building its own fleet was to meet growing export volumes amid the short supply of tonnage.

BYD will be the second Chinese vehicle maker to own car carriers. The country’s largest vehicle maker — SAIC Motor — has a fleet of 32 ships that can transport more than 2m vehicles.

The vessels are under the control of its shipping division, SAIC Anji Logistics. The Shanghai company invested around $425m between October 2021 and May this year in five 7,800-ceu newbuildings. The PCTCs, being built by Jiangnan Shipyard, are slated for delivery in 2024.

SAIC Anji is hungry for more PCTC tonnage. It recently put out a tender for seven 8,900-ceu dual-fuel newbuildings.

Market observers said the demand for car-carrier tonnage mirrors the liner sector, where consumer goods manufacturers such as Swedish furniture giant Ikea and US retail behemoths Walmart, Costco and Home Depot chartered in their own shipping tonnage due to global supply chain congestion.

Chinese furniture manufacturer and retailer Loctek turned shipowner by ordering a 1,800-teu boxship newbuilding to be delivered next year, to enhance its competitiveness and “accelerate the development of its overseas business”.

Analysts forecast a possible shortage of car carrier tonnage after years of underinvestment in the sector and on the back of an increase in global demand for electric vehicles. Nearly 90 pure car carriers are on order, representing 16% of the trading fleet.