Shanghai is home to many automobile production units, however, due to the rapid rise in Covid-19 cases, many automakers had to halt production in metropolitan Shanghai, leading to a major drop in cars sold. in April 2022. Shanghai is in its sixth week of an escalating Covid-19 lockdown that has tested manufacturers’ ability to operate amid tight restrictions on the movement of people and materials. According to the Shanghai Automobile Sales Trade Association, almost all car dealerships have been closed and no sales have been recorded.
Overall auto sales in China fell 48% in April as Covid shutdowns closed factories, limited traffic to showrooms and dampened spending. Production at joint ventures of major foreign automakers in Changchun (which was temporarily under lockdown) fell 54%, according to a report by the China Passenger Car Association.
China’s passenger car production fell 41.1 percent year-on-year and 46.8 percent from March 2022, the report said. Tesla Inc halted production at its Shanghai factory on May 9. Aptiv, Tesla’s main wire harness supplier, stopped shipping from a Shanghai factory that supplies Tesla and General Motors Co after Covid-19 infections were discovered among its workers.
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Tesla’s Shanghai factory, also known as Gigafactory 3, produces the Model 3 sedan and the Model Y crossover for the Chinese market and for export. Tesla partially resumed production at the Shanghai factory on April 19 after a 22-day shutdown caused by the city’s Covid-19 lockdown. Tesla had aimed to increase production at its Shanghai factory to 2,600 cars a day from May 16.