The BYD Explorer No 1, capable of carrying 7,000 cars, is bound for Europe after making a stop in the Chinese port of Yantai and soon Shenzhen.

The ship is managed by Zodiac Maritime Ltd and is being rented to BYD, according to a WeChat post by China International Marine Containers Group Co., which built the vessel.

BYD, having conquered its home market to become China’s best-selling car brand, is expanding overseas at a rapid click. It clinched the crown of the world’s largest EV manufacturer from Tesla Inc in the fourth quarter.

Chinese carmakers’ growing presence offshore has drawn retaliation from the European Union, which in October launched an investigation into Chinese EV subsidies it says distort the market.

BYD Explorer No 1’s maiden voyage started in Longkou, a port city in China’s northeastern Shandong province. It stopped into Yantai on Jan 9 and is now headed for Shenzhen, where BYD is headquartered. There it will retrieve some more cargo before sailing onto Europe, naval tracking data show.

CIMC said BYD Explorer No 1 is the first cargo ship made by a Chinese shipbuilder for the purpose of exporting Chinese cars. It’s equipped with two tanks to store liquefied natural gas, which will be used as the main fuel in order to reduce emissions.

Separately, BYD on Wednesday teased the next model, the U7, from its sub-brand Yangwang, cars that are aimed at the ultra-luxury segment and typically cost upwards of 1 million yuan (US$140,000).

The new sedan adds to Yangwang’s U8 sport utility vehicle and a yet-to-launch supercar, the U9.

Yangwang started delivering cars in late November, meaning December was the sub-brand’s first full month, when 1,593 models were shipped.