Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Car sales dampened by chip shortage, COVID measures

Economy May 26, 2022 11:20AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Cars drive on the road during the morning rush hour in Beijing, China, July 2, 2019. REUTERS/Jason Lee

SHANGHAI/BERLIN (Reuters) -Car sales in China, Europe and the United States remain depressed compared to last year's levels as semiconductor shortages and anti-pandemic measures weigh on global autos markets, data showed on Thursday.

Chinese retail car sales grew in May from April but were still down 16% year-on-year, according to the Chinese Passenger Car Association, which called for more government support for the industry.

In Europe, data from auto consultancy JATO showed new car sales down 20%, with electric vehicles (EVs), which many automakers have prioritised amid supply chain troubles, also down by 1.4%.

The fall was driven by a 15% drop in sales of plug-in hybrid EVs, whose environmental credentials are coming under growing scrutiny from European regulators.

In the U.S., total sales were down 21% year-on-year, according to research by Deutsche Bank (ETR:DBKGn), with last year's sales bumped up by a post-lockdown release of pent-up demand.

"We expect sales to recover sequentially further through the year," the report said.

Overall, car sales in China in the first quarter were 0.2% higher than last year, data showed. By contrast, Europe's year-to-date sales were down 13% by JATO's figures, at their second lowest level since 1991.

Still, further economic data from China paints a picture of a grinding and only partial economic recovery from anti-pandemic measures.

Road freight transportation and express delivery from distribution centres last week were both stronger than a month earlier but still down sharply on last year, Nomura Global Economics said.

Chinese electric vehicle maker Xpeng (NYSE:XPEV) is accelerating deliveries after resuming double-shift production in mid-May at its plant in the southern city Zhaoqing, the chairman of the company, He Xiaopeng, told analysts this week.

Tesla (NASDAQ:TSLA) added a second shift at its Shanghai plant on Thursday, heading towards making 2,600 cars daily, a person familiar with the matter said.

Tesla did not respond to a request for comment.

Car sales dampened by chip shortage, COVID measures
 

Related Articles

Brazil posts trade surplus of $8.8 billion in June
Brazil posts trade surplus of $8.8 billion in June By Reuters - Jul 01, 2022

BRASILIA (Reuters) - Brazil's trade surplus reached $8.814 in June, official figures showed on Friday, below market expectations. Economists polled by Reuters had projected a...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email