supply shortages,” said Fitch Solutions in a report
this week.
Both foreign and Chinese brands also are
investing billions of dollars to develop electric
vehicles under pressure to meet government
sales targets.
Sales of electric and gasoline-electric hybrid
SUVs and sedans fell 75.2% in February from a
year ago to 12,908 vehicles, according to CAAM.
Sales for the first two months were down 59.5%
at 59,705.
China is the biggest market for electrics,
accounting for about half of global sales last year.
Demand sank in mid-2019 when Beijing ended
multibillion-dollar subsidies to producers and
buyers and shifted the burden to the industry by
requiring automakers to make a portion of their
sales electric.
The extended closure of factories also is hurting
the industry by disrupting the global flow of
components. China’s accounts for about 8% of
global exports of auto parts, according to UBS.
Producers abroad that need Chinese
components “will see little relief as the industry
recovers,” said Fitch.
The economic impact of the most sweeping
anti-disease measures ever imposed is expected
to be so big that private sector forecasters have
cut their growth outlooks for this year.
February sales usually get a boost as shops
reopen after the Lunar New Year holiday, which
fell this year in January.
Forecasters expect automakers to make up a big
share of their losses this year once consumers
start making delayed purchases.