The third quarter of 2021 has been a troublesome one for the auto business. Ongoing chip shortages, labor shortages, excessive logistics prices, provide chain pressures, and fluctuating economies proceed to put pressures on automotive firms.
China’s automotive sector felt the results of those pressures within the third quarter this 12 months. Though China remains 8.7% ahead of last year’s new car sales on a year-to-date foundation, new car sales fell 13% compared to Q3 of 2020. September had the biggest drop, with a 17% year-to-year drop in gross sales. GM and its China joint ventures delivered about 20% fewer vehicles within the third quarter this 12 months versus final 12 months. Happily, sturdy gross sales early within the 12 months have saved GM forward of final 12 months on a year-to-date foundation. Nonetheless, other automakers had even steeper declines. Toyota’s gross sales fell by nearly 36% in September, and Honda and Nissan reported 28% and 26% drops, respectively.
There have been just a few shiny spots within the third quarter. New vitality automobiles (NEV) gross sales grew 150% in September in comparison with final 12 months. Electrical automobile makers additionally posted sturdy good points, with Nio doubling its electric vehicle sales within the third quarter. Tesla additionally posted its highest China gross sales because it opened its Shanghai gigafactory, with over 56,000 sales of Chinese made vehicles in September alone. Tesla posted 73.2% year-over-year gross sales development for the third quarter, a big soar despite the worldwide chip scarcity.
The China Affiliation of Car Producers tasks demand will stay steady within the fourth quarter, and predicts the 12 months will nonetheless finish forward of 2020’s gross sales numbers as a result of sturdy gross sales earlier within the 12 months. Nonetheless, it stays to be seen whether or not the business can cease the 5 month slide of gross sales numbers via the rest of the 12 months.
© 2021 Foley & Lardner LLPNationwide Legislation Evaluate, Quantity XI, Quantity 292
