China's auto sales fall for eighth straight month in Dec amid chip shortage

1 year ago 158

China's auto sales in December fell 1.6% from a year-ago period, the eight consecutive monthly drop, industry data showed on Wednesday, as the world's biggest car market was hit hard by COVID-19 outbreaks and the global shortage of semiconductors.

Overall sales in China stood at 2.79 million vehicles in December, bringing total sales for 2021 to 26.28 million, rising 3.8% from 2020 data from the China Association of Automobile Manufacturers (CAAM) showed.

A global shortage of chips, used in everything from brake sensors to power steering to entertainment systems, has led automakers around the world to cut or suspend production, pushing up prices of both new and used vehicles but also impacting sales.

One bright spot was the sales of new energy vehicles (NEV), which include battery-powered electric vehicles, plug-in petrol-electric hybrids and hydrogen fuel-cell vehicles, showed strong momentum with a growth of 157.5% to 3.52 million units in 2021.

In December alone, 531,000 NEVs were sold, representing a rise of 114% year-on-year. China has in recent years heavily promoted NEVs as part of its efforts to curb air pollution.

CAAM said in December that it expects automobile sales to rise 5.4% to 27.5 million this year, and for NEV sales to grow 47% to five million.

(Reporting by Sophie Yu and Brenda Goh; Editing by Clarence Fernandez and Sherry Jacob-Phillips)

(This story has not been edited by Business Standard staff and 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

Read Entire Article