China's new car sales in July fell by more than 11% from the same month last year for the third straight month, continuing to be affected by a drop in production due to a global semiconductor shortage.

According to the announcement by the "China Automobile Manufacturers Association" made by automobile manufacturers, the number of new cars sold in China in July was 1,864,000, down 11.9% from the same month last year.



China's new car sales have declined for the third straight month.



This is because passenger cars, which account for more than 80% of total sales, decreased by 7% due to the continued impact of the decline in production due to the global shortage of semiconductors.



In addition, commercial vehicles such as trucks decreased significantly by 30.2% due to the tightening of emission regulations and the reduction of infrastructure investment by the government.



Industry groups say that the impact of semiconductor shortages is the biggest now, and that it will soften in the second half, but that "the spread of infection with the new coronavirus outside the country where semiconductor factories are located will affect procurement." And are showing concern about the future.



Since automobiles are a major industry in China, if the impact of semiconductor shortages on production and sales is prolonged, it could lead to a slowdown in the economy, and the Chinese government is becoming more cautious.