China’s Automotive Industry ‘Blockdown’ Directly Hit…Production 47% ↓·Sales 36% ↓


It has been confirmed that China’s automobile industry was directly hit by both production and sales in April, when China blocked dozens of cities across the country, including Shanghai, the “economic capital,” saying it would prevent the spread of COVID-19.

According to a monthly report released by China’s CPCA on the 10th, the production of passenger cars in China in April was 969,000 units, down 41.1 percent and 46.8 percent from the same month and the previous month, respectively.

Sales of passenger cars also fell 35.5% and 34.0% from the same month and the previous month, respectively, to 1,042,000 units in April. The joint meeting explained that the decline in sales in April compared to the same month and the previous month was the highest ever.

China’s production and sales of passenger cars plunged in April because the aftermath of the city blockade that took place across China, including the Shanghai blockade, was reflected.

The blockade of Shanghai, one of China’s auto industry hubs, began on March 28 and has continued for 44 days until this day.

Companies with key production facilities in Shanghai, including Tesla and Shanghai Volkswagen, stopped operating their production facilities on March 28 and partially resumed operations in late April with permission from the authorities.

In addition, since March, a full and partial blockade has continued in other key areas of the Chinese automobile industry, including Guangdong and Jilin provinces.

In the aftermath of the blockade, not only did it disrupt the production and sales of finished car makers, but the auto industry in China was greatly affected by the paralysis of supply chains and logistics.

By region, production of the five major automakers in Shanghai, where the blockade was particularly damaged, plunged 75 percent from the previous month. Production of finished car companies in Changchun, Jilin Province, also decreased by 54% compared to the previous month, the survey showed.

By nationality, the production of joint ventures invested by foreign companies fell 56 percent and 58 percent, respectively, compared to the same month and the previous month last year. The production of native Chinese companies decreased by 20% and 38%, respectively, compared to the same month and the previous month last year, showing relatively small damage.

Production at Tesla’s Shanghai plant also decreased significantly due to the COVID-19 blockade.

Tesla’s Shanghai plant produced 10,757 units in April. This is 16% of the 65,814 units produced in March.

Tesla stopped operating on March 28, when the blockade in Shanghai, the location of its Chinese factory, began, but resumed operations in a closed loop from the 19th.

Looking at the operating date in April as 12 days, it can be seen that about 900 units were produced per day. This is less than half of the average daily output of 2,100 units in the first quarter.

Tesla’s ranking in China’s electric vehicle market has also fallen due to disruptions in operations. Tesla has maintained its second-largest position in electric vehicle production after Chinese company Viyadi this year, but it was pushed down to fifth place after Viyadi, Shanghai GM Wu Ling, Chirui and Guangzhou Motors in April.