China’s 2021 Vehicle Output to Drop by 2.15 Million Due to Chip Shortage, Accounting for 19% of Global Reduction

Automotive News reported on Monday that according to the latest data from AutoForecast Solutions (AFS), as of December 5, the ongoing shortage of chips has caused a cumulative reduction of 10.122 million vehicles in the global automotive market, among which the cumulative output reduction in China reached 1.982 million vehicles, accounting for 19.6% of the total output reduction.

AFS predicts that the cumulative output reduction in the global automobile market will climb to 11.324 million vehicles this year, among which the cumulative output reduction in China’s automobile market is expected to be 2.148 million, accounting for 19% of the total output reduction.

Last week, global automakers reduced production by 92,000 vehicles. European plants knocked more than 56,000 more vehicles off of their production plans, while those in Asia, including Japan and South Korea, have deleted another 30,000. About 6,000 vehicles were also lost in North America, China, South America, the Middle East and Africa.

SEE ALSO: Some New Tesla Cars Shipped Without USB Ports due to Chip Shortages

In order to cope with the ongoing chip crisis, some automobile manufacturers have cancelled the chip-based functions of some orders. For example, some newly delivered vehicles by Tesla have no USB ports in the center console or rear seat, and Li Auto has also sent their prospective car owners the “Li ONE delivery plan,” whereby car owners can choose to have their vehicles delivered first, then have radars installed two months later.