Posted on 30 Jun 2022
As of mid-June, SAIC Motor, China's leading automaker headquartered in Shanghai, saw daily combined production at its three subsidiary companies - SAIC Passenger Vehicle Branch, SAIC Volkswagen and SAIC General Motors - reach an average of 13,000 units, indicating their production has recovered to levels prior to the recent COVID-19 outbreak in the city, Mysteel Global has learned.
In a release from the China Passenger Car Association (CPCA), Zhang Boshun, pointed out that more than 1,000 auto-related parts suppliers in the industry chain are returning to normal production.
Between late March and April, a new COVID-19 wave had severely hit Shanghai, which wreaked havoc on the local auto sector. Subsequently, only 53,500 units had been produced at Shanghai car plants in April, lower by a massive 74.8% on year, according to Zhang.
The new-energy vehicles (NEV) were not exempt. The Shanghai Gigafactory of NEV maker Tesla saw a mere 10,000 units roll off the production line in April, and only 1,500 units were delivered to buyers, Zhang noted.
The gross value of industrial output from Shanghai's auto sector totalled Yuan 16.6 billion ($2.5 billion) in April, down 70.9% on year and making for the steepest on-year decline in two years. "The city's auto industry was in stagnation," Zhang commented.
A group of SAIC Motor's passenger vehicles wait for loading at a port in Shanghai, source: Xinhua
"Since mid-and late April, Shanghai's carmaking sector has slowly but steadily resumed production, thanks to the joint efforts of all parties, and the supply chain has gradually stabilized," Zhang remarked.
Last month, vehicle output reached 183,400 units in Shanghai, with the on-year decline narrowing to 18.8%. As for NEVs, some 48,700 were produced in May, up 10.1% on year, according to Zhang.
With the implementation of double-shift production starting June 18, SAIC Motor churned out 200,000 vehicles during early and mid-June at its Shanghai-based plants, higher by 30% on year. In addition, Tesla's Shanghai Gigafactory resumed full capacity earlier this month and ran closed-loop production in double shifts, Zhang noted.
National statistics from the China Association of Automobile Manufacturers showed that sales and production of automobiles across China surged by 57.6% and 59.7% respectively on month to 1.86 million units and 1.93 million units in May, as reported.
Source:Mysteel Global
