The Pain Of Shanghai's Auto Industry After The Epidemic Counterattack

Yesterday, SAIC released the guidelines for the prevention and control of the epidemic on resumption of work and production, and will start the stress test for resumption of work and production today. The relevant person in charge of SAIC Group said that not only their OEMs will conduct stress tests, but also some core parts factories will be put into stress tests at the same time.

SAIC Motor is preparing for the resumption of work and production, and will examine and prepare for the return to work and commuting service capabilities, supply chain capabilities, safe production, and transportation of employees who have returned to work. It is understood that while the relevant conditions for epidemic prevention and control are met, relevant factories of SAIC Group will be closed for management to ensure the safety of people, materials and the environment. This news is good news for the nearly 10,000 manufacturing companies in Shanghai and for the people in the closed and controlled areas. After tens of days of fighting against this round of the new crown, it seems to see the dawn before dawn.

According to statistics, from January to November 2021, the total assets of Shanghai's industrial enterprises will be 5,157.37 billion yuan, an increase of 300.32 billion yuan or 6.2% over the same period of the previous year. The total assets of industrial enterprises ranked 10th in the country. For Shanghai, which ranks among the top ten in terms of total assets of industrial enterprises, the city has pressed the pause button on March 28, and it is conceivable that it will have an impact on Shanghai's industry and the country's total industrial output value. Especially in the field of the automobile industry, the total output of Shanghai Automobile in 2021 will be 2.8332 million, accounting for 10.7% of the national total of 26.528 million. The total output value of the automobile industry is 758.6 billion yuan, accounting for 17.5% of Shanghai's total GDP of 4,321.485 billion yuan. It can be seen why the first batch of resumption of production on April 18 was SAIC Group and its core parts factories, a key measure to reduce the serious losses of the Shanghai automobile industry in the second quarter.

The time pointer turned back to mid-March. Not only Shanghai, but also various auto OEMs in Jilin, Shenyang, Baoding, etc. also pressed the pause button. In this regard, Zhang Xiang, Dean of the New Energy Vehicle Technology Research Institute of Jiangxi New Energy Technology Vocational College, made a speech. Detailed dynamic recording and analysis.

According to Dean Zhang's statistics:

On March 12, Shanghai Zhiji factory closed production;

On March 14, SAIC Volkswagen closed-loop production for two days, and the daily output was reduced from 320 vehicles to 200 vehicles per day;

On March 16, the Tesla factory with a weekly production capacity of 17,000 vehicles announced the shutdown;

On March 22, BMW Brilliance's Dadong plant stopped production.

On March 24, all production in Shenyang factories was suspended;

On March 31, SAIC Volkswagen partially shut down production;

On April 9, NIO pressed the pause button;

On April 14, the production of the Great Wall Tank 300, which sold 7,023 units in February, was suspended.

At the same time, new car-making forces such as Nezha, WM Motor, and Tianji Automobile, as well as Volvo Asia Pacific, Ford China, etc., have also been greatly affected by the epidemic in Shanghai. Although the OEMs of some car companies are not located in Shanghai, the R&D centers are still not spared. Administration, marketing and other work can be done from home, but many links such as new car development and testing cannot be achieved through "home".

In addition, in addition to car companies and parts suppliers, Shanghai also has core automotive electronic components. Ambofu, which is currently affected, is the largest supplier of automotive wiring harnesses in China. It is the entire SAIC Group, as well as Tesla, FAW-Volkswagen, Ford, Suppliers to almost all Chinese car companies such as Toyota. It can be said that most car companies in the country will face a shortage of wiring harness supply after the production of Aptiv is stopped. There is also the suspension of production in the Suzhou plant of Dr. Changan and Great Wall, which has led to the interruption of the supply of ESP systems of Changan and Great Wall, so that the production of the Tank 300 models under Great Wall has been temporarily suspended.

In March, which was supposed to be an incremental period, my country's auto industry declined year-on-year due to the impact of the epidemic. According to monthly data released by the China Association of Automobile Manufacturers, in March this year, automobile production and sales data were 2.241 million and 2.234 million, down 9.1% and 11.7% year-on-year. Specifically, the production and sales of passenger vehicles in March were 1.881 million units and 1.864 million units, a year-on-year decrease of 0.1% and 0.6% respectively, compared with the previous month. 10,000 units, a year-on-year decrease of 38.0% and 43.5% respectively.