World’s Largest Automobile Market Under Havoc

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  • The company didn’t respond to a request from CNN Business for comment.
  • The event was originally scheduled to be held from April 21 to April 30.
  • BYD BYDDF, meanwhile, sold the newest energy vehicles in China, delivering 104,878 units in March.

Factory closures occurred, new model introductions were postponed, and sales plummeted. The country’s massive car market has been thrown into turmoil by the country’s newest Covid rise, with strict lockdowns affecting vehicle production in numerous cities as reported by CNN.

Covid outbreak

China’s worst Covid outbreak in two years has prompted authorities to ramp up the country’s zero-Covid policy, locking down several major cities and tens of millions of people.

The strict lockdown measures in places such as Shanghai and Jilin province have forced automakers to shut down manufacturing and risk delayed shipments at a time when global demand for vehicles is strong.

Volkswagen’s (VLKPF) factories in Shanghai and Changchun, the provincial capital of Jilin, have been shut for weeks, the company said on Monday.

“This is currently causing a delay in production.”

The company added that it will compensate for the production stoppages “if the situation eases in the near future,” through extra shifts and other measures. 

“At present, we are assessing the situation from day to day,” it added.

New car launches 

Toyota (TM) has also closed its factory in Changchun for nearly a month.

The company didn’t respond to a request from CNN Business for comment.

“Since March, due to the pandemic, the company’s supplier partners in several places including Jilin, Shanghai and Jiangsu suspended production one after the other and have yet to recover,” the company said in a statement. 

The event was originally scheduled to be held from April 21 to April 30.

That means several new car launches will be delayed.

Chinese EV makers Nio, XPeng, and Li Auto have previously said they would unveil new models at the Beijing Autoshow.

Recent surge

The Covid restrictions have also taken a toll on the country’s car sales.

The association attributed the decline to the recent surge in Covid cases.

Monday’s data showed one bright spot, however — China’s demand for electric vehicles remains strong.

About 455,000 new energy vehicles, including hybrids and pure EVs, were sold in March, up 122% from a year ago, according to separate data from the China Passenger Car Association.

Among them, 53,664 were pure-electric models.

Tesla didn’t immediately respond to a request for comment about its March sales numbers.

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Source: CNN

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