According to the South China Morning Post (SCMP), the rising number of COVID cases will cause China’s electric vehicle (EV) industry to lose 600,000 sales in the first quarter of 2023 due to disrupted production and reduced demand.

EV makers in China are expected to deliver a total of 1.5 million vehicles to customers between January and March. This projected figure shows a decline from 1.87 million units in the third quarter. 

The media cited CCIC that sales and production would be affected in the short term, although China’s exit from the “zero-COVID” policy could benefit car makers. 

According to the organization, “The supply and demand sides of the industry will both be impacted by the pandemic.” Moreover, it’s reported that the number of visits by shoppers to their showrooms would also decline compared with previous months. 

Some manufacturers have cut costs due to the pandemic’s impact. 

For instance, WM Motor cuts 50% of top executives’ payments while ordinary workers only get 30% of their wages. WM Motor CEO Shen Hui issued a letter to explain the company’s financial difficulties. <Footage>

According to Yi Cai, quoting the China Passenger Car Association, WM Motor sold only 29,284 electric vehicles in the year’s first ten months. However, the Shanghai-based EV manufacturer only sold 1,117 vehicles in October and did not reach the top 15 list.

The National Health Commission announced on December 29 that China would reopen borders and abandon quarantine for travelers from January 8. This shift has caused a surge in COVID cases, affecting companies’ workforce as infected workers are requested to stay out of production lines. 

On December 24, Reuters reported that Tesla’s Shanghai plant suspended production. Moreover, the company reduced its January output. 
Ivan Li, a fund manager at Loyal Wealth Management in Shanghai, said it wasn’t a good year for Chinese car makers, and some top players would be affected.

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