Slump in auto output stretches into July

Vehicle output in China kept shrinking in the first several weeks of July amid the persistent semiconductor chip crunch, adding to declines the previous two months, according to the China Association of Automobile Manufacturers.

Production at 11 key auto manufacturing groups tumbled 33 percent to around 806,000 vehicles in the first 20 days of July, the top industry body said this week.

Output of light vehicles including sedans, crossovers, SUVs, MPVs and minibuses dropped 31 percent during the period, while production of commercial vehicles such as buses and trucks plunged 41 percent.

The 11 companies, which consist of nearly all foreign automakers producing locally and major domestic manufacturers, represent more than 90 percent of vehicle output in China.

CAAM didn’t disclose additional information on vehicle output during the latest period studied. 

Due to the chip shortage, vehicle production and sales in China contracted in May and June after rebounding 13 straight months in the wake of the coronavirus outbreak.

In June, vehicle output industrywide fell 17 percent to 1.94 million while sales declined 12 percent to 2.02 million, according to CAAM.