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China s auto industry braces for worsening chip shortfall

China light-vehicle sales advance 11% in April

SAIC Motor Corp. SAIC Motor Corp. offered steep discounts to its EV products during the Labor Day holiday in Shanghai. China’s new-vehicle sales continued to grow in April on demand for sedans, crossovers, SUVs, multipurpose vehicles and minibuses, but a top trade group warned a growing chip shortage will undermine second quarter output and possibly sales. Overall, deliveries have now climbed 13 straight months year over year as the industry moves beyond the pandemic. Deliveries of new light vehicles sedans, crossovers, SUVs, multipurpose vehicles and minibuses advanced 11 percent to top 1.7 million, the China Association of Automobile Manufacturers said Wednesday.

Pandemic-battered sectors advance as outlook improves

The rotation argument, triggered by expectations of less restrictive measures, and the inflation proposition, stemming from substantial stimulus aid and growth prospects, were thus far the key themes of 2021.  Investment grade, conditioned by the moves witnessed in the U.S. Treasuries and Eurozone sovereign curves, generated total negative returns. Meanwhile, high yield corporate credit advanced. US, European, and Emerging Market high yield – the latter showing signs of weakness until Q1 2021, generated total positive returns. On a year-to-date basis, European high yield outperformed, generating a 1.56 per cent return.  An improved economic outlook - mainly driven by a resumption in activity consequent to a lower infection rate probably owing to the ongoing vaccination drive in the developed market world, fiscal stimulus, and central banks maintaining an accommodative stance, continued to drive a rotation further into the previously pandemic-battered sectors.

China Automotive Systems Reports 77 0% Net Sales Increase and Return to Profitability in the First Quarter of 2021

Share this article WUHAN, China, May 12, 2021 /PRNewswire/ China Automotive Systems, Inc. (NASDAQ: CAAS) ( CAAS or the Company ), a leading power steering components and systems supplier in China, today announced its unaudited financial results for the first quarter ended March 31, 2021. First Quarter 2021 Highlights Net sales rose 77.0% to $130.3 million from $73.6 million in the first quarter of 2020 Gross profit increased 75.9% to $19.7 million from $11.2 million in the first quarter of 2020; gross margin was 15.1% compared with 15.2% in the first quarter of 2020 Income from operations increased 320.0% to $4.2 million from $1.0 million in the first quarter of 2020 Net income attributable to parent company s common shareholders was $3.2 million, or diluted income of per share of $0.10, compared to net loss attributable to parent company s common shareholders of $0.03 million, in the first quarter of 2020 

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