fbpx

Type to search

China Car Sales Plunge 35% Amid April Lockdowns

The figures, showing the biggest monthly drop in more than two years, coincide with the prolonged Covid lockdown in Shanghai and many other cities


Tesla has laid off staff in Asia as it cuts back on jobs after an edict by chief executive Elon Musk that staff reductions were needed.
Tesla's actions are a concerning sign of the health of the global economy as markets contract, inflation soars and recession worries run rampant. File photo: Reuters.

 

Passenger car sales in China plummeted by more than a third in April, data from the China Passenger Car Association (CPCA) showed on Tuesday.

The figures, showing the biggest monthly drop in more than two years, coincide with the prolonged Covid lockdown in Shanghai and many other cities, which led to the closure of factories and severe impacts on logistics and consumer demand.

Sales plunged by 35.7%, which the CPCA said was the biggest monthly drop since the height of the initial coronavirus outbreak in Wuhan in March 2020, when sales fell 40% year-on-year.

China’s zero-Covid policies have disrupted entire supply chains with analysts at Nomura estimating in mid-April that 45 cities, representing 40% of the country’s GDP, were under full or partial lockdowns.

Production of, and demand for, luxury cars was badly hit, with sales falling 54%, the CPCA said.

Sales of new energy vehicles, in comparison, rose 50.1% year-on-year as customers rushed to place orders, anticipating that automakers may raise prices. BYD in particular saw strong sales, CPCA added.

US electric vehicle maker Tesla produced 10,757 China-made vehicles in April and sold 1,512 of these, the fewest since April 2020 and compared with the 65,814 cars it sold in March this year.

 

• Reuters with additional editing by Jim Pollard

 

ALSO on AF:

Tesla Faces Shortage of EV Parts, Halts Production in Shanghai

China’s Car Sales Rise as NEVs Post 197% Increase

China Car Sales Fall For Eighth Consecutive Month

 

 

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

logo

AF China Bond