Chip shortage and power crunch hit China auto sales in 'Golden September'

1 / 2
2 / 2
Getty Images
Short Url
Updated 12 October 2021
Follow

Chip shortage and power crunch hit China auto sales in 'Golden September'

  • The sales drop was due to the domestic power crunch caused partly by the shortage of coal and prolonged global chip shortage

China's auto sales slumped 19.6 percent in September from a year earlier, industry data showed on Tuesday, falling for a fifth consecutive month as a prolonged global shortage of semiconductors and a domestic power crunch disrupt production.


This time of year, known as "Golden September, Silver October", is usually a high point in sales for the industry, with consumers making purchases after staying away from showrooms during the stifling summer months.


Sales in the world's biggest car market totalled 2.07 million vehicles in September, data from the China Association of Automobile Manufacturers (CAAM) showed.


The sales drop was due to the domestic power crunch caused partly by the shortage of coal and prolonged global chip shortage that has forced many major automakers to idle or curtail production, said Chen Shihua, a senior official at CAAM.


He added that the chip supply shortage eased in China last month and that the industry body now expects the supply to improve further in the final three months this year but constraints would remain.


One bright spot in the data was the strong sales of new energy vehicles (NEV), which more than doubled in September to 357,000, thanks to the government's promotion of greener vehicles to cut pollution. These include battery-powered electric vehicles, plug-in petrol-electric hybrids and hydrogen fuel-cell vehicles.


Tesla Inc, which is making Model 3 sedans and Model Y sport-utility vehicles in Shanghai, sold 56,006 China-made vehicles in September, the highest since it started production in Shanghai about two years ago, and up 27 percent from 44,264 in August.


Chinese EV makers Nio Inc and Xpeng Inc delivered over 10,000 vehicles each last month. Volkswagen AG said it sold 10,126 ID. series EVs in China in September.


Another CAAM official, Xu Haidong, said NEV sales likely to hit three million units this year, up from 1.4 million last year.


Closing Bell: Saudi main index closes in red at 11,167  

Updated 11 February 2026
Follow

Closing Bell: Saudi main index closes in red at 11,167  

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 46.43 points, or 0.41 percent, to close at 11,167.54. 

The total trading turnover of the benchmark index was SR4.88 billion ($1.30 billion), as 66 of the listed stocks advanced, while 192 retreated. 

The MSCI Tadawul Index decreased, down 5.52 points, or 0.37 percent, to close at 1,506.55. 

The Kingdom’s parallel market Nomu lost 153.40 points, or 0.65 percent, to close at 23,486.52. This comes as 32 of the listed stocks advanced, while 31 retreated. 

The best-performing stock was Tourism Enterprise Co., with its share price surging 9.95 percent to SR14.36. 

Other top performers included Mobile Telecommunication Co., Saudi Arabia, which saw its share price rise by 5.32 percent to SR11.48, and Al Masar Al Shamil Education Co., which saw a 4.86 percent increase to SR22.89. 

On the downside, Almoosa Health Co. was the day’s weakest performer, with its share price falling 4.81 percent to SR150.40. 

Dallah Healthcare Co. fell 3.81 percent to SR113.50, while Saudi Research and Media Group dropped 3.44 percent to SR100.90. 

On the corporate front, Arabian Plastic Industrial Co. has signed a non-binding memorandum of understanding with K. K. Nag to explore the establishment of a specialized manufacturing facility for expanded polypropylene products. 

According to a Tadawul statement, the agreement sets out initial mutual obligations and rights between the two parties as part of APICO’s broader expansion strategy to increase production capacity and meet rising industrial demand. 

The company’s share price rose 1.21 percent to SR43.52 on the parallel market.