China's vehicle sales fall for the fourth consecutive month in 2021

Vehicle sales in China fell to 17.8% in August compared to a year ago, as the global semiconductor shortage hit the world's largest car market.

Car sales fell for the fourth consecutive month in August, data from the China Association of Automobile Manufacturers (CAAM) revealed on Friday.

Overall vehicle sales in China were calculated as 1.8 million. Despite the fall in sales, for the first eight months of the year, vehicle sales jumped 13.7% as the market recovered from pandemic lows.

Strong sales were noted in new energy vehicles which almost doubled to 321,000, including battery-powered electric vehicles, plug-in petrol-electric hybrids, and hydrogen fuel-cell vehicles.

CAAM added that the year-on-year decline in passenger car production and sales has widened compared with the past month. It added that the change in national emission regulations in China led to market fluctuation, affecting the demand for trucks, and the production and sales of commercial vehicles.

The global chip shortage triggered by the rising demand during the pandemic amid industry shutdowns and supply-chain bottlenecks has unsettled major automakers. Ford Motor and General Motors have announced production cuts in the North American market citing the unavailability of semiconductor chips.

The government's promotion of greener vehicles to cut pollution has prompted electric car makers such as Nio Inc, Xpeng Inc, and BYD Co Ltd to expand their manufacturing capacity in China reported Reuters.

Picture Credits: CGTN