Chinese electric car sales may fall by 600,000 units in the first-quarter as Covid-19 infections dent appetite for spending

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EV makers will deliver 1.5 million vehicles in the first quarter as the pandemic strains supply chains and the labour force, says China International Capital

That would represent a 40 per cent decline from the fourth quarter of 2022, when sales may top 2.1 million vehicles

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In the third quarter of this year, Chinese EV companies delivered 1.87 million units to buyers. Photo: EPA-EFE

Daniel Renin Shanghai

Published: 10:30am, 28 Dec 2022Updated: 11:07am, 28 Dec 2022

A flare-up in Covid-19 cases is likely to cause China’s electric vehicle (EV) industry to lose 600,000 sales in the first quarter of 2023 amid disrupted production and reduced demand.

The country’s 200 or so electric-car makers, from Tesla to General Motors’ venture with SAIC Motor and Wuling Motors, are expected to deliver a total of 1.5 million vehicles to customers between January and March as the pandemic strains supply chains and dents the labour force, according to a report by China International Capital Corporation (CICC) analyst Deng Xue on Tuesday.

The projected figure would represent a 40 per cent decline from the fourth quarter of 2022, when sales may top 2.1 million vehicles. Chinese EV builders reported 1.4 million deliveries in October and November combined, and the China Passenger Car Association (CPCA) estimated last weekend that 700,000 units could be shipped in December.

In the third quarter of this year, Chinese EV companies delivered 1.87 million units to buyers.

CICC said surging infections will disrupt sales and production in the short term, though Beijing’s exit from the zero-Covid strategy could benefit carmakers from the second quarter of 2023.

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“The supply and demand sides of the industry will both be impacted by the pandemic,” the report said. “The number of visits by shoppers to their showrooms will also turn out to be lower [than in previous months].”

Chinese electric car sales may fall by 600,000 units in the first-quarter as Covid-19 infections dent appetite for spending

EV makers will deliver 1.5 million vehicles in the first quarter as the pandemic strains supply chains and the labour force, says China International Capital That would represent a 40 per cent decline from the fourth quarter of 2022, when sales may top 2.1 million vehicles

EV makers will deliver 1.5 million vehicles in the first quarter as the pandemic strains supply chains and the labour force, says China International Capital

That would represent a 40 per cent decline from the fourth quarter of 2022, when sales may top 2.1 million vehicles