Chip Shortage

GAC held a meeting with chip suppliers in January and ordered chips for the year according to its annual demand plan, it said.

Although the chip shortage will continue for some time, SAIC has the advantage of a strong industry chain system and will work with the industry to overcome the difficulties, the company said.

From traditional car companies like Volkswagen to emerging car companies like Nio, all are facing the impact of chip shortages this year. Now it seems that the supply and demand imbalance may last longer than originally expected.

The figure is equivalent to 3.6 percent of the company's sales of 5.6 million vehicles last year and 3.2 percent of this year's sales target of 6.17 million vehicles.

Chinese vehicle manufacturers cut production by 5 to 8 percent in the first two months of the year due to chip shortages, a Chinese official said recently.

The global auto production cut is expected to be more than 2 million vehicles in 2021.

An unnamed Nio source told the China Securities Journal that the chip shortage exceeded previous forecasts, and it is still closely monitoring the supply situation and actively coordinating supply chain resources.

Nio expects to deliver approximately 19,500 vehicles in the first quarter of 2021, down from the previously released outlook of 20,000 to 20,500 vehicles.

Chip shortages are a major challenge for China's auto industry today, but their impact is limited and expected to ease soon, according to an industry association.

The CPCA believes that the shortage of production of passenger cars due to chip shortages does not amount to direct losses.