Aerial photo taken on Feb. 15, 2019 shows the COSCO Shipping Pisces approaching Piraeus port, Greece. (Xinhua/Wu Lu)

Chinese carmaker Shanghai Automotive Industry Corporation (SAIC) and shipping giant China COSCO Shipping Corporation Limited (COSCO) on Sunday both announced that the two sides are to deepen cooperation through cross-shareholdings, reported Shanghai Securities News.

Through free transfer of shares, COSCO is expected to hold 5.82 percent of the shareholdings in SAIC Motor Corporation Limited (SAIC Motor, 600104.SH) previously held by SAIC, whereas SAIC will receive COSCO's 5 percent shareholdings in COSCO Shipping Holdings Co., Ltd. (COSCO Shipping, 601919.SH).

The transfer of shares will promote in-depth integration of advanced manufacturing and modern service industry, especially in sectors including logistics of vehicles and auto parts, as well as global business operation, said a representative from SAIC Motor, noting that the cooperation will provide the company with more stable resource supply for the industrial chains and allow the company's new energy vehicle (NEV) products to better integrate with the logistics sector.

According to statistics released by SAIC Motor, in September 2022, the company's overseas sales volume reached 108,000 vehicles, up 51.2 percent year on year. In the first nine months of this year, the company has sold 688,000 vehicles to overseas markets, almost as many as that in the whole year of 2021.

Also seeing benefits from the shares transferring act, COSCO Shipping recognizes the cooperation as in alignment with the company's positioning and long term development strategy. The cooperation allows COSCO Shipping to create for its customers digital global supply chains of container logistics that are more stable and resilient, according to the company.

Data from China Association of Automobile Manufacturers shows that China's motor vehicle exports reached a record high in August to 308,000 vehicles. Currently, Asia and Europe are the two main destinations of China's NEV exports, said Cui Dongshu, secretary-general of the China Passenger Car Association, pointing out that the increase in NEV exports is boosting the shipping demand of carmakers.

With Chinese carmakers making more intensive efforts to explore the global market, it is estimated that the demand for automobile shipping will continue to increase in the future, according to an analyst in the auto industry, noting that carmakers and shipping companies should work together to achieve win-win cooperation.