China auto gross sales decline for eighth month in a row

China’s automobile gross sales declined for the eighth straight month, as coronavirus outbreaks in some Chinese language cities hit automobile manufacturing.

Retail gross sales of passenger vehicles in January fell 4.4% from a 12 months earlier to 2.09 million automobiles, the China Passenger Automotive Affiliation stated Monday.

The passenger-car affiliation expects the world’s largest automobile market to stay sluggish in February, because the financial slowdown, tightened scrutiny within the real-estate sector and sporadic Covid-19 outbreaks could proceed to weaken shopper demand.

Toyota Motor Corp.
TM,
-0.87%

stated its gross sales in China final month dropped 21.5% from a 12 months earlier, whereas the gross sales of two China joint ventures of Volkswagen AG fell 19.9% and 17.9% in January, knowledge from the affiliation confirmed.

Toyota and Volkswagen shut their crops within the northern Chinese language metropolis of Tianjin for greater than every week final month after the town reported dozens of native Covid-19 circumstances.

Nissan Motor Co.’s gross sales fell 8.7% and Honda Motor Co.’s dropped 6.9%.

In January, gross sales of electrical and plug-in hybrid vehicles greater than doubled from a 12 months earlier to 347,000 automobiles, the affiliation stated.

Tesla Inc.
TSLA,
-4.93%

offered 59,845 vehicles made at its Shanghai manufacturing facility, 67.8% of which had been exported outdoors China, knowledge from the affiliation confirmed.

Electrical-car makers are going through rising stress on account of surging costs of lithium and different supplies, coupled with the discount of presidency subsidies for new-energy automobile purchases, the affiliation stated.

Final month, XPeng Inc.
XPEV,
-4.24%
,
which greater than doubled gross sales to 12,922 automobiles, raised the costs of some fashions by as much as $900. The corporate declined to touch upon the value transfer.

Write to Singapore Editors at singaporeeditors@dowjones.com

Supply hyperlink