China auto production in March was reported at 2.46mn units, up by 71.6pc from the prior year and sales spiked by 74.9pc to 2.52mn units, according to data released by the China Association of Automobile Manufacturers (CAAM) on April 9.
In the Jan-March period, a total of 63.5mn units were produced, up by 81pc from the preceding year. Sales in Q1 also jumped 75.6pc to 64.8mn units. The association stresses that prevention of the epidemic in the country has finally shown results with the industry and the economic recovery moving at a fast pace.
In March, new energy vehicles sales soared 239pc to 226,000 units from 2020 levels. The electric vehicle segment is slowly gaining momentum. Tesla has reportedly sold 35,478 cars in China in March and is expanding capacity amid the government impetus on greener vehicles to cut air pollution.
Auto manufacturing companies have raised a concern about the recent sharp increase in raw material prices which will have a bearing on input cost for auto manufacturers, reported local media. Shortage of semiconductors is expected to expand in Q2 (April-June) which will affect the companies and disrupt the smooth manufacturing activity.