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Chip shortage casts shadow over China’s auto industry recovery

A global shortage of semiconductors is hitting autos production in China, jeopardising hopes the world’s biggest car market might spearhead a recovery in the sector, industry executives warn. William Li, chief executive of Nio Inc, told Reuters on Monday he expected a “relatively big impact” from the chip shortage on its electric vehicle production in the second quarter. Automakers, including Nissan Motor, Ford Motor and Nio have said they have cut production due to the chip shortage. Li Shaohua, a senior official at the China Association of Automobile Manufacturers, said the chip supply shortage hit Chinese auto production by 5% to 8% in the first two months of this year. It expects the impact to ease from the third quarter. As a result, the China Automobile Dealers Association said it expects car inventories to continue to drop in China, and that supplies of some models might not be able to meet demand.

Source: Reuters

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