Auto sales in China dip by 12.4% due to chip shortage

News  /   July

China

As per industry data, auto sales in China fell 12.4% in June from the corresponding month a year earlier. The slowdown is due to a global shortage of semiconductors in the world’s biggest car market.

Automakers around the world are adjusting assembly lines due to the auto-chip shortage, caused by manufacturing delays that some semiconductor makers blame on a faster-than-expected recovery from the coronavirus pandemic.

China’s overall sales stood at 2.02 million vehicles in June, according to data from the China Association of Automobile Manufacturers (CAAM). The country sold 12.89 million vehicles between January and June, up 25.6% from year-ago levels.

Chen Shihua, a senior official at CAAM, told in an online press briefing that the global auto-chip supply shortage hit China’s production hard last month, but given an overall economic recovery, CAAM is still moderately positive about domestic auto market.

Sales of new energy vehicles (NEVs) including battery-powered electric vehicles, plug-in petrol-electric hybrids, and hydrogen fuel-cell vehicles maintained their strength, through a 139.3% rise, with 256,000 units sold last month. NEV makers such as Nio Inc, Xpeng Inc, and BYD are expanding manufacturing capacity in China, encouraged by the government’s promotion of greener vehicles to cut pollution.

CAAM said last month, that China’s annual NEV sales are expected to grow more than 40% in the next five years. U.S. electric vehicle maker Tesla Inc sold 33,155 China-manufactured electric cars in June.

Source: News 18

Image Sources: Google Images

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