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China s automobiles sales witness slump amid shortage of car chips

China is witnessing a slump in its car sales even as demand for semiconductors and prices of raw materials have been increasing, straining the country s economic recovery and weighing on global trade. Sales of passenger cars in June were down 5.1 per cent from a year earlier to 1.58 million vehicles, The Wall Street Journal reported quoting China Passenger Car Association. April-June sales were up 2.3 per cent from the same period last year, when the market began to recover from a nationwide pandemic lockdown. Much of the June decline could be attributed to supply constraints that have emerged in recent months, the association said. The historic chip shortage has crimped production for automakers around the world, including some in China, the group said.

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