EV makers in China severely affected by strict COVID-19 curbs: Report
Category: #business  By Akshay Kedari  Date: 2022-04-12
  • share
  • Twitter
  • Facebook
  • LinkedIn

EV makers in China severely affected by strict COVID-19 curbs: Report

According to a recent study by China Passenger Car Association, the country’s strategy to combat COVID-19 has severely affected its electric vehicles factories’ output in March with Tesla Inc.’s operations in Shanghai barely making more cars as compared to the low-production previously recorded in February.

It was found that overall passenger cars sales in March totaled 1.61 million in China, which slumped by 10.9% as compared to last year.

Cui Dongshu, the Secretary-general of the China Passenger Car Association stated that due to pandemic measures EV makers produced far lesser cars than expected. Meanwhile, Tesla’s Shanghai factory produced 16% more cars i.e., 154 cars higher in March in contrast with February, the month when workers received paid time off for the Lunar New Year.

Electric vehicle makers are selling from their inventories to support on-time deliveries, Cui confirmed.

For those unaware, China has imposed a strict lockdown to curb the spread of the Omicron variant including places like Shanghai and Jilin province where factories and suppliers of major automakers are located.

Tesla’s Shanghai factory output stood at 68,117 vehicles in January. In mid-March, it suspended its activities for two days on account of Covid controls and later around 28 March due to Shanghai’s lockdown.

The association’s data report cited that Tesla’s export of cars from China fell to 60 units as the demand for domestic deliveries more than doubled from February. At the end of each quarter, Tesla sells fewer cars so that it could satisfy domestic accumulative orders, claimed Cui.

In standard conditions, the Shanghai factory can produce 10,000 Model Y and 6000 Model 3 cars a week for Japanese, German, and Chinese markets. It is also worth noting that some customers hurried to place orders ahead of further increases in price after Tesla announced a price hike due to the high cost of raw materials.

Even the Chinese automaker NIO confirmed that it has suspended its production after China has tightened the safety measures to contain the epidemic surge which resulted in a 9% share drop.

Source Credit:

https://auto.economictimes.indiatimes.com/news/passenger-vehicle/chinas-covid-curbs-hit-ev-output-including-teslas-data-shows/90772839

About Author

Akshay Kedari    

Akshay Kedari

Akshay holds a Bachelor’s degree in computer engineering. Despite having a penchant for software development and the like, Akshay took to writing as a career owing to his passion for the field. Presently, Akshay writes articles for itresearchbrief.com and a few oth...

Read More>>

More News By Akshay Kedari

Hyundai issues a 281,000 vehicle recall over a possible exploding part
Hyundai issues a 281,000 vehicle recall over a possible exploding part
By Akshay Kedari

In North America, Hyundai Motor Company is recalling about 281,000 vehicles over concerns that the s...

BMW exploring energy investments to reduce its reliance on natural gas
BMW exploring energy investments to reduce its reliance on natural gas
By Akshay Kedari

BMW is reportedly exploring new investments in geothermal, solar, and hydrogen energy to reduce its ...

JetBlue eyeing hostile takeover of low-cost carrier Spirit Airlines
JetBlue eyeing hostile takeover of low-cost carrier Spirit Airlines
By Akshay Kedari

JetBlue Airways has reportedly filed a hostile takeover attempt for Spirit Airlines after the low-co...