In China, sales rose sharply in March as the world’s largest auto market spearheads the sector’s recovery from the COVID-19 pandemic. According to the China Association of Automobile Manufacturers (CAAM), sales reached 2.53 million vehicles in March, up 74.9% from last year.
Sales of electrified vehicles (NEVs), including battery-powered electric vehicles, gasoline-electric hybrid vehicles and hydrogen fuel cell vehicles, rose 239% to 226,000 units in March.
NEV manufacturers such as local companies Nio Inc and Xpeng Inc, as well as foreign groups such as Tesla, are expanding their manufacturing capacity in China by promoting greener vehicles to reduce air pollution. Another Chinese car company, the China Passenger Car Association, reported Friday that Tesla sold 35,478 Chinese-made vehicles in March.
Chen Shihua, senior executive officer of CAAM, said the industry body expects the chip supply shortage to have a more negative impact on China’s car production in the second quarter than in the first.