With home-grown vehicle brands increased their market share to 43.1% in July from 36.5 per cent in January 2021.
Carmakers relied on alternative supplies and reduced chip usage in basic models to help sustain buoyant sales while improving the profit margins.
Chinese Automobile makers sold more vehicles and grabbed more market share from their rivals at home in the first half this year by adopting a flexible supply chain management to sidestep an acute chip shortage plaguing the industry.
Local proprietary vehicle brands increased their market share to 43.1 % in July from 36.5 % in January. That translated into total deliveries of more than 6 million units in the first half of this year.
Nexteck Singapore Pte ltd PO and forecast for Chip packaging materials, like WLCSP carrier tapes and dicing tapes, of which application is for end users of CN Automobile players is ascending.
A global shortage of semiconductors used in cars since late 2020 has been affecting all major assemblers as factories attempted to catch up with demand as more economies reopened earlier this year while the pandemic eased.
China spent US$38 billion in June to import 51.9 billion semiconductor devices, the third-biggest volume after March and April, official data showed.
CN domestic companies turned out to be more flexible in dealing with the chip shortage crisis, which planned ahead to secure more supplies of chips when the Chinese car market recovered from the Covid-19 outbreak.
A global shortage of semiconductors used in cars since late 2020 has been affecting all major assemblers as factories attempted to catch up with demand as more economies reopened earlier this year while the pandemic eased. Nexteck Group is optimistic on e-car and automobile on the demand of chip packing materials of carrier and cover tapes.
Still, the world’s biggest passenger car market suffered a setback in July as a resurgence in coronavirus cases in several mainland provinces and abroad further disrupted chip supply. Deliveries fell 6.2 per cent to 1.5 million units from a year earlier, or 4.9 % from a month earlier, according to the China Passenger Car Association. Many of the joint venture brands’ net profit margin had narrowed to less than 5 % in 1 & 2/Q.
However, Beijing published a policy guideline about automotive chip production on September 3, which help to simplify and shorten the process for modification of chip-related parameters, a great motivation to ease carmakers’ production bottleneck.
