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China automobile revenue tumble for fourth thirty day period on chip shortages

Cars and trucks for export hold out to be loaded onto cargo vessels at a port in Lianyungang, Jiangsu province, China Oct 14, 2019. REUTERS/Stringer

BEIJING, Sept 10 (Reuters) – China’s auto gross sales slid 17.8% in August from a yr previously, slipping for a fourth consecutive month, as the world’s most significant car current market was hard strike by a global lack of semiconductors.

Total revenue in China stood at 1.8 million vehicles in August, details from the China Association of Automobile Companies (CAAM) confirmed.

China’s auto revenue jumped 13.7% in the first 8 months of 2021 from the same interval a 12 months back, as the market place recovered from pandemic lows.

CAAM now expects 2021 expansion to be slower than a previously forecast 6.5%, stated Chen Shihua, a senior formal at CAAM.

A extended worldwide chip shortage has unsettled main automakers which include Ford Motor (F.N), Honda Motor (7267.T), General Motors (GM.N) and Volkswagen (VOWG_p.DE), forcing quite a few to idle or curtail output.

The shortage was not likely to be resolved shortly as the pandemic rages on in many parts of the world, Chen explained.

1 vivid location in the knowledge was the robust gross sales of new energy autos, which extra than doubled in August to 321,000 motor vehicles. These include battery-run electrical autos, plug-in petrol-electric powered hybrids and hydrogen gas-mobile motor vehicles.

The government’s promotion of greener motor vehicles to slice air pollution has prompted electric powered auto makers these as Nio Inc (NIO.N), Xpeng Inc (9868.HK) and BYD Co Ltd (002594.SZ) to expand manufacturing potential in China.

Reporting by Yilei Sunshine and Brenda Goh Modifying by Clarence Fernandez, Muralikumar Anantharaman and Ana Nicolaci da Costa

Our Criteria: The Thomson Reuters Have confidence in Ideas.

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