Chip shortages are expected to ease within China's auto industry in the second half of the year, with the sector gradually entering an inventory-raising cycle, said a research report released today by CICC, a top Chinese investment bank.
Insurance registrations for passenger vehicles in China totaled 1.695 million units in May, up 2.6 percent from the previous month and 6.3 percent year-on-year.
Insurance registrations for cars in May totaled 792,000 units, up 7 percent year-on-year, and for SUVs totaled 789,000 units, up 5.2 percent year-on-year, the report said.
The impact of the chip shortage continues, resulting in relatively flat production and sales in the first half of June, the report said.
Average daily retail auto sales in China were 25,000 units in the first week of June, down 7 percent year-on-year. Daily wholesale sales averaged 25,000 units, down 26 percent from a year earlier.
Average daily retail auto sales in China for the second week of June were 35,000 units, down 2 percent year-on-year. Average daily wholesale 33,000 units, down 17 percent year-on-year, the report noted citing data from the China Passenger Car Association.
CICC believes that the decline in wholesale data in early June was due to the ongoing impact of global chip shortages and the relatively slow production and sales pace of some manufacturers at the beginning of the month.
New energy vehicles are accelerating their penetration and new products will drive the new car makers into the upward cycle, the report said.
CICC believes that the facelift models of the new car makers that incorporate new technologies, such as the new Li ONE released in May, and the upcoming XPeng P5 will drive the new car makers into the upside cycle.