SOURCE / ECONOMY
China’s auto chip shortage expected to ease in Q2: CAAM
Published: Mar 11, 2021 05:13 PM
Aerial photo taken on March 8, 2021 shows workers driving new energy vehicles out of a parking lot at a logistics park in Liuzhou, south China's Guangxi Zhuang Autonomous Region. Liuzhou is a famous automobile industrial base. In recent years, local new energy automobile industry has seen vigorous development.Photo:Xinhua

Aerial photo taken on March 8, 2021 shows workers driving new energy vehicles out of a parking lot at a logistics park in Liuzhou, south China's Guangxi Zhuang Autonomous Region. Liuzhou is a famous automobile industrial base. In recent years, local new energy automobile industry has seen vigorous development.Photo:Xinhua



China's auto chip shortage is expected to get relieved at the second quarter, as global car chip shortage also hurt China's car production, an official from China Association of Automobile Manufacturers (CAAM) said on Thursday.

As the current shortage of chip supply is a global issue, China has been hit hard in the first quarter with a 5-10 percent of estimated impact on production in the first quarter, but the situation will ease in the second quarter, Chen Shihua, vice secretary general of CAAM, said.

China's car sales have been boosted amid the global car chip shortage which lowered China's car production for 5 -10 percent in the first quarter of this year.

China's car sales from January to February reached 3.958 million, a year-on-year increase of 76.2 percent. The sales of new-energy vehicles took a huge leap with a year-on-year increase of 584.7 percent, with 110,000 cars being sold last month, according to a newly released data from CAAM.

Ministry of Industry and Information Technology (MIIT) stated on Thursday that the department would continue to work on strengthening quality supervision of new energy vehicles and promote the high-quality development of new energy vehicles. 

As the economy continues to recover steadily and China's government work report sets more than 6 percent GDP target for 2021, including to steadily increase auto sales, CAAM said that China's car consumption sector will receive a net benefit. 

However, CAAM said that stable recovery of the automobile market will still be impacted by the pandemic, and uncertainties and difficulties linked to the future economic recovery will still affect the revival of the automobile sector.

Global Times


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