The strict lockdown measures in places like Shanghai and Jilin province have forced automakers to halt production and risk delivery delays while global demand for vehicles is strong.
The Volkswagen (VLKPF) factories in Shanghai and Changchun, the provincial capital of Jilin, have been closed for weeks, the company said on Monday.
“Due to the current Covid situation, production at our plants in Changchun (since mid-March) and Anting/Shanghai (since April 1) is currently on hold,” Volkswagen said in a written response to CNN Business. “This is currently causing a delay in production.”
The company added that it will compensate for the lost production “if the situation relaxes in the near future”, through extra shifts and other measures. “We are currently assessing the situation on a day-to-day basis,” she added.
Nio (NIO), a Chinese electric vehicle maker, also said on Saturday that it had halted production due to Covid-related disruptions.
“Since March, due to the pandemic, the company’s supplier partners have successively stopped production in several places including Jilin, Shanghai and Jiangsu and are yet to recover,” the company said in a statement. “Consequently, Nio has halted car production,” it said, adding that the company will delay deliveries of its electric vehicles to users.
It’s not just individual manufacturers. The Beijing Auto Show, one of the industry’s largest global gatherings, has been postponed until further notice due to the recent spike in Covid cases. The event was originally scheduled to take place from April 21st to April 30th.
“We will closely monitor the development of the pandemic,” Auto China’s secretariat said in a post on its official WeChat account on Saturday, adding that it would announce new dates in due course.
This means that several new autostarts will be delayed. Chinese EV makers Nio, XPeng and Li Auto have previously announced that they will be unveiling new models at the Beijing auto show.
The Covid restrictions have also hit the country’s car sales.
Auto sales in China plummeted 12% year-on-year in March, reversing a 19% gain in February and ending two straight months of growth, data from the China Association of Automobile Manufacturers showed on Monday.
The association attributed the drop to the recent spike in Covid cases.
However, Monday’s data showed a bright spot: China’s demand for electric vehicles remains strong.
According to separate data from the China Passenger Car Association, about 455,000 new energy vehicles, including hybrids and pure electric vehicles, were sold in March, up 122% year-on-year.
Tesla (TSLA) sales in China were particularly strong, ranking first among all-electric brands.
The company delivered 65,814 Chinese-made vehicles in March, most of which were sold in the Chinese market. That number was up 85% from the previous year.
BYD (BYDDF), on the other hand, sold the most New Energy Vehicles in China, delivering 104,878 units in March. These included 53,664 purely electric models.
Tesla didn’t immediately respond to a request for comment on March sales figures.