Chinese automakers are continuing to ship cars to Europe via the Red Sea and Suez Canal, despite ongoing attacks on vessels by the Houthi militia in Yemen. While most shipping companies have rerouted around Africa to avoid the conflict zone, Chinese car carriers have maintained their use of the faster and less expensive route, reportedly due to an unofficial understanding with the Houthis and Iran. This strategy allows Chinese companies such as BYD and SAIC Motor to save significant time and costs, giving them a competitive edge over Japanese, Korean, and European automakers who rely on longer shipping routes.

The savings are especially important as Chinese automakers face tariffs imposed by the European Union on electric vehicles, prompting them to export more hybrid models. Despite heightened risks and increased insurance premiums, Chinese firms have invested in new, large car-carrier ships to support these shipments. The situation highlights the complex geopolitical and economic factors shaping global auto trade, as well as China's growing influence in maritime logistics.