Connect with us

Trending News

Tesla Sales in China Drop by 98% Due To Strict COVID-19 Lockdown



Tesla Sales in China Drop by 98% Due To Strict COVID-19 Lockdown

(CTN News) – Tesla’s sales in China have decreased by 98% due to the COVID-19 lockdowns. Currently, China, the world’s largest automobile market, is at an all-time low in terms of automobile sales due to the lockdown. According to the China Passenger Car Association, Tesla sold 1,512 cars in mainland China last month, a decrease of 98% from March. In the world’s second-largest economy, consumer spending has fallen sharply as tens of millions of people in at least 31 cities have been locked down for weeks.

CNN reported that Tesla was the biggest seller of electric vehicles in March, shipping 65,184 vehicles from its Shanghai facility. When the government shut down Shanghai in April to stop the spread of the virus, the company’s production and sales suffered. Tesla’s Gigafactory was shut down for several weeks last month, and manufacturing has only just resumed.

Tesla CEO Elon Musk ‘doesn’t expect this to be a huge issue’

The CEO of Tesla, Elon Musk, said on Tuesday at the Financial Times’ virtual vehicle conference that he had recently spoken with Chinese authorities and the lockdowns are being lifted quickly. Furthermore, he stated that he doesn’t expect this to be a major issue in the near future.

Other automakers reported a sharp drop in sales as well. In response to the component shortage caused by the lockdown in Shanghai, Toyota (TM) has shut down 14 production lines at eight sites in Japan from May 16 to May 21. As a result, the company’s global production will decrease by 50,000 units in May.

Overall car sales in the country fell 46% in April compared to March

In April, production at five major automakers in Shanghai fell by an average of 75%. CNN reports that during the same period, big automakers in northeastern Changchun saw their production drop by 54%. China’s Association of Automobile Manufacturers released data on Wednesday showing overall car sales in the country fell 46% in April compared with March, to 1.2 million units. The April sales figure was the lowest in a decade.

Related CTN News:

Prince Charles Delivers Queen’s Speech For the First Time
Diabetes Almost Doubles Risk Of Death From COVID-19: Study
Shanghai Extends the COVID-19 Lockdown Until April 26, Death 36

Arsi Mughal is a staff writer at CTN News, delivering insightful and engaging content on a wide range of topics. With a knack for clear and concise writing, he crafts articles that resonate with readers. Arsi's pieces are well-researched, informative, and presented in a straightforward manner, making complex subjects accessible to a broad audience. His writing style strikes the perfect balance between professionalism and casual approachability, ensuring an enjoyable reading experience.

Continue Reading