The Global Chip Shortage Ravage China’s EV Manufacturing  

Electric vehicle (EV) manufacturers of China are confronting a great struggle to produce
their electric vehicles in recent years due to chip scarcity.  One of the main reasons
behind this is Covid-19 as well as lockdown situations in different regions of China.  As
a result of the pandemic and lockdown measures, many automakers reduced chip
orders in 2020 and the suppliers of car parts were unable to supply the required
components of EV assembly.  In addition, As claimed by CNBC, an American pay
television business news, some China's EV assemblers are lagging in introducing up-to-
date technology in their product development compared with their rivals.  While most
world-class automobile companies like Tesla and Ford have already adopted the latest
technology to meet the continuous demand of consumers, a few EV producers of China
were not able to cope with the challenge.  After a difficult year in 2021, supply issues
are still troubling the car sector. According to AutoForecast Solutions, a company that
analyzes industry output forecasts, a chip shortage led Chinese automakers to cut
production by more than 1 million cars last year.  According to the firm, the chip
shortage has resulted in the production of 11 million fewer automobiles globally.  "A
shortage affects not just manufacturing output, but also delivery times," said Chen
Jinzhu, CEO of Shanghai Mingliang Auto Service, a car repair, and insurance
company.  Hence, China's EV manufacturers have a big chance to meet worldwide
demand for car buyers as new capacity is developed, chip shortages will be alleviated in
the second half of 2022 according to William Li, CEO of Shanghai-based Nio, one of the
top three mainland electric vehicle start-ups. Unlucily, China's EV manufacturers are
experiencing an economic downturn owing to a variety of unavoidable causes.