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Overseas closures hurt automotive brands in China

The China Automobile Dealers Association (CADA), lowered its score for imported and luxury automobile brands by 6.8% in April compared to the previous month. 
CADA runs a monthly brand index to gauge the performance in the market of different automotive brands.

It said its score for mainstream, joint-venture brands, such as those many global automotive groups have set up in China will local partners, fell by 3%.

However, its score for Chinese brands went up by 6.4% compared to March.

The association said the figures reflected the effect of the covid-19 pandemic on automotive plants and car parts factories overseas. Closures outside China have affected the availability of vehicles in the Chinese market, and this is especially true of luxury brands, CADA said.

For example, local reports say Tesla failed to reopen its factory in Shanghai after a public holiday in early May. The company is making Model 3 cars in Shanghai, but only 30% of the parts are purchased in China.

Industry commentators have said automotive factories in China should begin sourcing more parts and materials locally to lower the risk of interruptions of this kind.


Image shows a special China edition of the Bentley Mulsanne.




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