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China's Auto Sales Jump After 5 Years

Automobile sales in China saw a growth for the first time since 2017, which is somehow attributed to a rise in new energy vehicles’ (NEVs) sales, according to Wednesday’s industry data.

Total auto sales in the country increased 3.8% year-over-year as monthly sales (2.79 million cars) in the month of December caused overall sales to reach 26.28 million vehicles in 2021, shown by the China Association of Automobile Manufacturers (CAAM).

As the prospect for removal of chip shortage and high costs of raw materials blooms, it is predicted that this year auto production and sales will improve compared to the last year. China’s auto industry started shrinking as of 2018, despite several decades of boosting, as there were challenges including trade conflict between the U.S. and China and the pandemic outbreak.

China’s auto market rebound by the middle of 2020 was discontinued due to global issue of chip shortages, which also put a halt in car production throughout the world.

Last December, sales in China saw a decline of 1.6% versus a year earlier, which showed 8 successive monthly reduction, according to CAAM data. Sales of NEVs, however, climbed, a hike of 157.5% to 3.52 million units last year.

Only in December, 531,000 NEVs were sold in the market, 114% increase year-over-year.

CAAM’s last month prediction on auto sales was a jump of 5.4%, to 27.5 million units, in 2022. It also expects a 47% hike in NEV sales in the same year.

World’s auto competitors, like Tesla Automotive company, are focusing on appealing smart cars as electronic vehicle industry (EV) in China is growing fast. In the same front, Tesla last December saw a record 70,847 in sales of China-manufactured automobiles, revealed data from another China automobile association.

Volkswagen Vehicle manufacturer announced that in 2021 it couldn’t achieve its objective to sell 80,000 to 100,000 units of its ID battery electric series; it only sold 70,625 vehicles. However, the company attempts to possibly double its sales in 2022.

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By Samira Ha. on August 14, 2022

Hyundai, Kia Expect Rise in Auto Sales in 2022

Hyundai Motor and its affiliate Kia Corporation anticipated that in 2022 their cumulative sales will witness an increase of 12.1%. This is while the sales in 2021 couldn’t hit the target as a result of chip shortage issue across the world.

The combined vehicles sales in South Korean’s top two automobile companies stood at 6.67 million in 2021, which is roughly less than the target:  6.92 million vehicles. The failure is attributable to a shortage in chip supplies.

However, their global target in 2022 will reach 7.47 million vehicles, which sounds fair according to analysts.

Hyundai Motor in a statement said the company’s plan in the current year is to grow the market share, reinforce profits- by creating a balance between chip supply and demand- modify production plans, and boost e-vehicles line.

A growth in e-vehicles demand in the pandemic era as well as supply issue have impacted the automotive industry; million vehicles have not been produced in the world as major auto parts are not available.

The analyst at Eugene Investment & Securities, Lee Jae-il, predicts the demand for vehicles will remain high in 2022, based on suppressed demand from customers who couldn’t purchase vehicles in 2021. He also said apparently chip insufficiency is lessening. Growth in raw materials prices, yet, might have a negative effect on their profits, he added.

Hyundai Motor’s shares were 0.7% higher, opposed to 0.4% jump in KOSPI benchmark.

 

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By Saha on January 8, 2022

Taiwan Pledges to Focus on Auto Chips

Global chip shortage is still the problem automakers are facing; some have even had to reduce their output. Joe Biden’s top economic adviser, Brian Deese, appreciated the efforts by Wang Mei-hua, Taiwan Economy Minister, to fight the problem. Speaking on a letter from the White House concerning the issue, Wang said she has met with chip suppliers in the country over the recent weeks. Apart from the United States, countries like Japan rely on Taiwan’s suppliers, she said. She emphasized the manufacturers are trying to solve the issue. Major automakers in the world including Ford Motor Company, Volkswagen, Nissan, Toyota, and Fiat Chrysler Automobiles Corporation have been hurt as a result of insufficient chip. Taiwan Semiconductor Manufacturing Company is committed to increase chip yields. Samira H.
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By Samira Hassanzadeh on October 19, 2021

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