Chip shortage pushes China automobile sales down 12.4% in June

Auto sales in China fell 12.4% in June from the corresponding month a year earlier, industry data showed on Friday, as a global shortage of semiconductors hit autos production in the world’s biggest car market.

Automakers around the world have had to adjust 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 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 strong momentum, jumping 139.3%, 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.

China’s annual NEV sales are expected to grow more than 40% in the next five years, CAAM said last month.

U.S. electric vehicle maker Tesla Inc sold 33,155 China-manufactured electric cars in June.

(Reporting by Yilei Sun and Tony Munroe; Editing by Christopher Cushing and Sherry Jacob-Phillips)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor