September 29, 2022

Tesla’s China sales dive 98% in April amid Shanghi lockdowns

4 min read

The EV maker sold 1,512 vehicles in mainland China last month, down 98 percent from March, according to data from the China Passenger Car Association. The country’s Tesla production also fell 81 percent in April to 10,757 units from 55,462 units in March.

Tesla did not export any vehicles made in Shanghai in April, compared to 60 in March.

The decline comes as millions of people in at least 31 cities have been locked out for weeks, disrupting supply chains and hurting consumer spending in the world’s second-largest economy. Is.

This is a turning point for Tesla after a strong start to the year in mainland China. Tesla was the country’s largest seller of electric vehicles in March, delivering 65,184 cars from its Shanghai factory. That number was up 15 percent from February, as consumer demand for EVs remained strong even during epidemics.

Last year, Tesla’s “Giga Factory” in Shanghai exported 484,130 cars, about half of the company’s 936,000 global deliveries.

But its production and sales suffered a major setback in April, when the government Closed Shanghai and several other cities. To control the spread of the virus.
Tesla’s Giga factory was closed. For weeks Last month, and recently managed to resume production. But it looks like he’s hit another snag.
on Tuesday, Reuters reported.Citing unnamed sources, Tesla resumed most production due to problems with suppliers. The company did not respond to a request for comment.

Tesla CEO Elon Musk sought to allay concerns about China’s lockdown.

“I have had talks with the Chinese government in recent days and it is clear that the lockdown is being lifted rapidly,” Musk said on Tuesday. A virtual car conference hosted by the Financial Times.

“So I don’t expect this to be a major issue in the coming weeks.”

The effects of Shanghai

Not everyone shares the hope of a smile. Shanghai has been under lockdown since the end of March, and it is unclear when sanctions will end.

Authorities in the city further Strict restrictions This weekend, when President Xi Jinping promised to double the zero quad policy as “unshakable”.

Other automakers also reported a sharp slowdown in sales and production last month.

Toyota (TM) It said on Tuesday it had suspended work on 14 production lines at eight plants in Japan from May 16 to May 21 due to a shortage of spare parts as a result of a lockdown in Shanghai.

This will reduce the company’s global production by 50,000 units for May.

“The shortage of semiconductor conductors, the proliferation of COVID-19 and other factors are making it difficult to look forward to months ahead.”

Another Japanese car manufacturer, Nissan Motor (NSANY)It reported on Monday that its sales in China were 46 percent lower in April than a year earlier.

Shohi Yamazaki, Nissan’s senior vice president and chairman, said: “We saw a continuous impact on vehicle production and sales in April due to the shortage of semiconductors, disruption in the supply chain, and the spread of COVID-19 in key areas and cities. . ” The company’s management committee for China.

Foreign businesses are urging China to change its course on wood.

Overall, China’s passenger car sales fell 34 percent in March-April, the biggest decline on record, the China Passenger Car Association said.

“As both the Chinese ADRs and the domestic stock market have depreciated, and the services sector has slowed, people’s incomes have declined during epidemics,” the association said. ADRs are securities issued by Chinese firms listed in the United States.

“The car market has lost its purchasing power, and consumers have lost interest in buying a car,” he said.

The industry group also acknowledged that lockdowns in Shanghai and Changchun have had a “significant impact” on supply chains, as both cities are major manufacturing bases for key parts of the auto industry.

In Shanghai, the five largest automakers recorded an average 75 percent drop in production in April compared to the previous month. In northeastern Changchun, major automakers saw a 54% drop in production over the same period.

On Wednesday, separate figures from the China Association of Automobile Manufacturers, another major industry association, showed that the country’s total car sales fell 46 percent from March to April, reaching 1.2 million vehicles. This was the lowest number in April in a decade.

Electric vehicles

But the association expects demand to pick up in May, as the boom spreads and the supply chain slowly returns to normal.

The CPCA said retail sales of new energy vehicles – including EVs and plug-in hybrids – fell 37% from March, “different from all other April in history,” the CPCA said. But demand is expected to rise again, and remain strong in the near term.

“Under the current environment, self-driving travel has become the first choice. Affected by high oil prices, more people will choose to buy new energy vehicles,” the association added. Sales of electric vehicles will accelerate from April. .

Toyota, Volkswagen and Tesla are bringing their factories back to China.

CNN’s Tokyo Bureau and Kathleen Benoza contributed to this report.

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