Semiconductor chip shortage issues will continue to disrupt China’s production of automobiles in the coming months, the China Association of Automobile Manufacturers said in a Wednesday post, reported Caixin.
The shortage problems emerged last month, leading to a drop in vehicle production for a number of carmakers, including SAIC-Volkswagen Automotive and Guangqi Honda Automobile.
Vehicle output at SAIC-Volkswagen slumped by nearly a quarter in December to 125,800 units compared to November, while Guangqi Honda’s production dipped 1.3% month-on-month in the same period. GAC Toyotasuspended a third production line in the southern city of Guangzhou due to chip supply issues, reported Caixin.
The lingering chip supply crunch could lead to a 5% year-on-year decline in production volumes for some carmakers in the first quarter this year, said UBS auto analyst Gong Min.