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China's auto industry tackles challenges to safeguard global industrial chain amid pandemic

China has been the world's largest auto producer and consumer for 13 consecutive years. Despite the COVID-19 disruption, China's major auto production bases have adhered to the dynamic zero-COVID policy and actively promoted work resumption. This has contributed to the stability of the global automobile industry supply chain.

XinhuaUpdated: May 30, 2022


Data from the China Association of Automobile Manufacturers (CAAM) showed that China's auto sales plunged 47.6 percent year on year in April due to the impact of the COVID-19 pandemic. But bucking the trend, the country's new energy vehicle market sustained rapid growth, with sales surging 44.6 percent year on year.

CAAM data also showed that China's automobile exports went up 39.4 percent year on year in the first four months of this year. A total of 723,000 vehicles were exported, of which passenger car exports soared 39.1 percent year on year to 551,000 units.

"China is the world's largest automobile producer and consumer. It has a complete industrial system, diversified market demand and the capacity for self-recycling and strong economic recovery. China's auto industry will overcome difficulties and achieve steady and healthy development," said Xin Guobin, vice minister of industry and information technology, on May 20.

Many Chinese carmakers believe that opportunity is born in crisis. A number of firms have just launched new models, such as FAW's new SUV model Hongqi LS7 and Dongfeng Motor's high-end electric multi-purpose vehicle VOYAH Dreamer.

"FAW has taken extraordinary measures to focus on marketing, ensure supply and manufacturing and reduce cost to recover the losses caused by the epidemic," said Qiu Xiandong, general manager of FAW.

The GAC Group based in south China's Guangdong Province achieved positive growth in both production and sales during the January-April period year on year.

Dongfeng Motor based in central China's Hubei Province recently took a lead to launch a technological innovation consortium to develop chips, as motor vehicle manufacturers and suppliers are facing a dramatic shortage of microchips globally.

The company has put science and technology innovation in a more important strategic position and strived to transform into a technology-based enterprise.

Fu Bingfeng, CAAM executive vice-president, said the auto industry is still facing unprecedented pressure, and the industry should continue to take active actions to ensure supply and boost consumption.  

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