COVID impact on China auto industry to continue into May, resulting in 20-40% production loss
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China's latest COVID-19 outbreak has significantly impacted production, sales and supply in the country's automobile industry, with the impact expected to continue into May and result in a 20% to 40% loss in production, the China Passenger Car Association (CPCA) said on Wednesday.
According to the CPCA, Chinese passenger vehicle wholesale sales in the first two weeks of April averaged 24K units/day, -44% Y/Y and -48% from the first two weeks of March.
The CPCA said that car companies in areas where COVID has broken out are shutting down production due to shortages of controls and parts, and partly because highways are closed, leading to logistical shutdowns. 
Tesla (TSLA) suspended Shanghai factory ops as COVID-19 outbreak worsened. NIO (NIO) suspended production on supply chain issues. 
China's latest outbreak of COVID-19 cases began in early March, and authorities have since responded with strict control measures, sending millions of people into lockdown, especially in its commercial capital of Shanghai. The measures have hurt the world's second-largest economy and have reverberated through global supply chains.
Hopes have recently been fanned that the tide is turning for China in its battle against the pandemic, with Shanghai on Wednesday reporting no new COVID-19 infections outside quarantine areas in two districts, according to Reuters.
The CPCA also said that this year's new product launches are facing an overall adjustment in pace, bringing some impact on dealer marketing in April and dampening the regular fuel car sales environment.