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Covid Hits Shanghai's Auto Marketplace With Zero Cars Sold in April

Due to the strict pandemic control measures, the No. 1 in overall car sales in China - Shanghai (about 736,700 new vehicles were sold last year), has now dropped to zero sales. This is the worst downturn in history, as the city in trying to battle the largest Covid outbreak in the last two years. 
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Being under a strict lockdown for seven weeks, authorities have ordered people to stay at home and shut down many businesses, as they try to combat the city's worst period since the global heatlh crisis started. 

Just with a minor level of activity and only in some areas announced by the authorities, people from Shanghai found themselves in the impossible situation to go outside their residential complexes, impacting also the city's automotive industry. Almost all dealers were closed, and no sales were recorded at all in April, according to a statement from the Shanghai Automobile Sales Trade Association released on Monday. 

China is facing the worst period in the past two years, with more than 30 cities in the Middle Kingdom under full or partial lockdown, affecting up to 187 million people across the country - numbers reported by CNN

Last April was the month with the highest deficit in car sales from the last decade, with a downgrade of 46%, because of the limited traffic to showrooms and the forced brakes held on spending.

Home to many auto producers like Tesla and Volkswagen, Shanghai is extremly important to China's auto industry, being also a major manufacturing hub, as well as major parts suppliers Bosch and ZF Group. 

After a strong start to the year in mainland China, Tesla downdropped their sales in April 2022 by 98% compared with the previous month. The american carmaker shut down the production at its Shanghai plant on May 9.

The lockdowns in Shanghai and other cities have caused massive supply chain disruptions, forcing Toyota to suspend operations of 14 production lines at eight plants in Japan. Nissan Motor also reported a 46% drop in China sales from a year ago.

Shanghai achieved on Tuesday the long-awaited milestone of three consecutive days with no new coronavirus cases outside quarantine zones, but most residents will have to still hold on their patience before returning to a normal life.

 
 
 
 
 

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