Vehicle sales fall 20% in China, the world's largest auto market
Troubles for the Chinese automotive industry, the largest in the world, continues to persist with sales in the month of September tumbling by 19.6% in comparison to figures from the same month in 2020. This was the fifth consecutive month of declining sales in the world's largest auto market.
The global shortage in semiconductors is having an impact the world over but the effects are perhaps being felt the most in China where sales have been on a constant - and significant - decline. The overall sales in the country stood at around 2.07 million last month, as per data released by China Association of Automobile Manufacturers (CAAM). And with no respite from the crisis on the horizon, chances are the falling sales figures are likely to continue.
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The semiconductor shortage has come as a massive blow to the global automotive world. That it has come in Covid-19 times has further exacerbated the problem. These chips are the brain behind modern-day devices and are common in household items like cellphones, washing machines, laptops, television sets and yes, even cars.
India is hardly immune either and OEMs here have adopted a cautious approach. Maruti Suzuki, for instance, saw production output dip significantly last month. Others are also walking the tightrope even if order books remain positive for many. (Read full report here)
This is also true for some of the biggest players in the US market. The likes of Ford and GM have been feeling the heat here. Many top officials of some of the biggest automotive brands have come on record to say that the crisis isn't likely to ease till at least late 2022.