11 Apr 2022
COVID-19: China Lockdowns Hinder EV Production, Particularly Tesla’s
The Index Today
China’s COVID-19 restrictions that have been instituted in the wake of its current surge in cases have notably affected business, particularly that of electric vehicle manufacture marked by Tesla Inc. scarcely being able to produce more vehicles at its Shanghai plant than its February output which is usually low.
According to Reuters, the China Passenger Car Association’s Secretary General Cui Donghsu revealed that the country’s COVID curbs have hampered EV car production with automakers falling far behind the target output for the month of March.
China has introduced a series of lockdowns and restrictions in its affected regions as it continues to battle the present outbreak of COVID-19 which is the biggest since the onset of the pandemic in March, 2020. The country has also locked down the province of Jilin and the city of Shanghai, which is a major global financial hub that is home to prominent carmakers and suppliers.
Although the Tesla China facility’s production rose by 16% in March compared to February, it was only marginally higher by 154 units. Additionally, operations at the plant had to be halted for a two-day period in March as part of the country’s COVID-19 measures followed by another day off on March 28. The China Passenger Car Association also revealed that the total passenger car sales for March numbered at 1.61 million, dropping by 10.9% from the previous year, reported Reuters.