China’s car sales losses in April may top 300,000 units as lockdowns of key carmaking hubs disrupt supply chain

While some manufacturers in affected areas still operating in closed-loop ‘factory bubbles’, interruptions tend to be more on the logistics side, such as transport

But with the auto supply chain spread out across China, temporary closures of factories in major cities may not result in severe disruptions at the national level

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China’s oldest automaker, FAW Group, has cut production at some of its factories in Jilin province since mid-March amid coronavirus restrictions. Photo: Xinhua

Published: 10:15pm, 8 Apr 2022Updated: 7:53pm, 9 Apr 2022

As extended lockdowns in two of China’s most important carmaking bases show no sign of abating soon, the automobile supply chain in the world’s biggest market will remain disrupted, at least in the short term, according to analysts.

In Changchun, the capital city of northeastern Jilin province, China’s oldest carmaker, has cut production at some factories since March 13 with no resumption date, as the whole province has been effectively sealed off since March 14.

The restricted capacity accounts for 46 per cent of the state-owned FAW Group’s total capacity, according to a note by Citic Securities on Thursday.

“The impact in Jilin province is that production has stopped in most plants, some operating under a bubble regime with low capacity,” said Harald Kumpfert, head of the European Chamber of Commerce in Shenyang.

“There are no known negotiations with the government about opening again. Everyone is waiting for orders from Beijing,” he said.

In Shanghai, home to another state-owned carmaker, SAIC Motor, as well as Tesla’s China Gigafactory, the citywide lockdown has been extended indefinitely amid rising daily infections, and some key assembly lines have halted production.