AutoBeta(AutoBeta.net)04/18 Report--

In March, the severe epidemic prevention situation in Jiangsu, Shanghai and Zhejiang once again had an impact on the automobile industry chain, and many automobile manufacturers and parts suppliers stopped work or reduced production. As we all know, Jiangsu, Shanghai and Zhejiang are the key areas of China's automobile industry, with a perfect layout of automobile industry chain, in which Shanghai is a central city that integrates import and export, sales, research and development. At the same time, it is the core center of China's high-end auto parts enterprises, around the Yangtze River Delta automobile industry supply chain in Shanghai, plays an important role in China's automobile industry.

According to the data, Shanghai produced 2.8332 million vehicles in 2021, an increase of 7.0 percent over the same period last year, accounting for 10.7 percent of the country's total output of 26.528 million vehicles. In 2021, Shanghai sold 638000 new cars, an increase of 12.1% over the same period last year. In addition, Shanghai's automobile export volume reached 484000 in 2021, an increase of 136% over the same period last year, a record high. At present, Shanghai has three main areas in the layout of the automobile industry, namely, Jiading, Jinqiao and Lingang New area. Among them, the output value of Jiading automobile industry is 359.3 billion yuan, accounting for 51%; the output value of Hong Kong automobile industry is 179.4 billion yuan, accounting for 26%; and the output value of Jinqiao automobile industry is 160 billion yuan, accounting for 23%.

As an automobile industry with long industrial chain and strong cooperation, the epidemic situation lasting for many days has indeed affected it to a certain extent. According to incomplete statistics, since March, a number of mainframe plants, including FAW, brilliance BMW, SAIC and Tesla, have stopped production due to the epidemic. To April 9, Ulai issued a statement saying that production of the whole vehicle was suspended directly due to the shutdown of the spare parts supply chain; by April 14, the tank brand of Great Wall Automobile issued a notice, a total of eight supplier partners were shut down due to the impact of the epidemic, and production of tank 300 models was suspended on April 14. On April 17, part of the production line of Dongfeng Nissan Guangzhou Huadu Factory stopped production from the 13th. Dongfeng Nissan insiders said: "the impact of the Shanghai epidemic on main engine factories across the country is enormous." There are a number of core parts manufacturers in Shanghai. At present, because of the epidemic, the surrounding logistics can not operate normally, which has a great impact on the production plan.

If the supply chain enterprises in and around Shanghai cannot find a way to return to work dynamically and return to production, all the whole car factories in China may have to stop production in May. He Xiaopeng, chairman of Xiaopeng Motor, and Yu Chengdong, Huawei's consumer business, both said on social networking platforms last week.

According to the attention of the automobile industry, affected by the epidemic situation in Jiangsu, Zhejiang and Shanghai, the shutdown involves 21 of the "Top 100 Global Auto parts Enterprises in 2021". Including Marelli, Japanese SL, Bentler, Amber, Ebeh, Autoroff, Schaeffler, Cortessellon, Corey, British Bundy, Valeo, Zaifu, mainland, Mahler, Denso, Chunsheng Electronics, Sumitomo, Hella, Fogia, American Lear, Yanfeng.

On the issue of resuming work and production, on April 15, the Ministry of Industry and Information Technology and other three departments conveyed the spirit of the State Council special meeting on ensuring the smooth flow of logistics and the stability of the industrial chain supply chain, studied the establishment of an emergency coordination mechanism for the industrial chain supply chain, and set up a "whitelist" of key enterprises for protection and operation to promote the resumption of work and production of 666 key enterprises in Shanghai. On April 16, the Shanghai Economic and Information Commission issued the guidelines on the Prevention and Control of the epidemic situation of resuming work and production in Shanghai Industrial Enterprises (first Edition), which clearly pointed out that the governments of all districts, streets and parks should actively support enterprises to resume work and production. According to the list of resuming work and production, there are 249 enterprises related to automobiles, the list of vehicle manufacturers includes SAIC Volkswagen Automobile Co., Ltd., SAIC Group Lingang passenger car Factory, SAIC General Motors Co., Ltd., Tesla (Shanghai) Co., Ltd., and other complete vehicle manufacturing enterprises in Shanghai. At the same time, including Baoshan Iron and Steel, Denso, Zaifu, Valeo, Fogia, Fuyao Glass, Kasma, mainland, Yanfeng and other hundreds of automotive upstream and downstream industrial chains, parts enterprises have also entered the first batch of key enterprises to resume work and production "whitelist".

It is understood that the "work plan" proposes that the establishment of a "whitelist" of key enterprises for protection and operation in Shanghai should be in line with the city's epidemic prevention and anti-epidemic policy, with the stage development situation, with out-of-city transfer support, and in step-by-step and dynamic management. In addition, the "work plan" also makes it clear that enterprises that are included in the "whitelist" of protection and operation should highlight the implementation of the main responsibility of enterprise epidemic prevention and control, and ensure that the "five are in place." that is, prevention and control mechanisms in place, material support in place, staff investigation in place, risk separation in place, and internal management in place.

According to the guidelines for the prevention and control of the epidemic situation of resuming work and production issued by SAIC, SAIC will start the pressure test of resuming work and production on April 18, and the core parts factory driven by SAIC will gradually enter the stress test. the risks and problems that may arise will be found and resolved in a timely manner. SAIC said that it will focus on finding out the difficult points and make positive preparations for the formal resumption of work and production. The participants in this stress test include not only the major vehicle, spare parts and logistics enterprises under SAIC, but also a large number of first -, second-and third-tier core suppliers closely related to SAIC vehicle production. Tesla's Shanghai factory also reported last week that it would resume work and production this week. After returning to work on Monday, Tesla plans to start with one shift and then gradually increase the schedule, according to people familiar with the matter.

Thanks to various efforts, the mainframe factory is fully resuming production. In addition to local vehicle manufacturers and parts suppliers in Shanghai, according to the Shenyang Industry and Information Bureau, as of April 13, there were a total of 2146 industrial enterprises in Shenyang, including 1021 large-scale industrial enterprises. The rate of industrial enterprises returning to work reached 56.2%. Among them, the key enterprise brilliance BMW production line to resume single-shift production. It was learned from the Changchun municipal government that all the five main engine plants of FAW Group in Changchun have resumed work. At present, FAW Hongqi Ulsan Plant, FAW-Volkswagen and FAW Fengyue have been offline, and FAW Pentium and FAW Jiefang have completed the commissioning of the production line and started production on the 17th.

According to data from the Federation of passengers, the output of domestic automakers in March 2022 was 1.823 million, down 0.3 percent from the same period last year and up 22.0 percent from the previous month. Wholesale sales in the narrow passenger car market in March were 1.814 million, down 1.6 percent from the same period last year and up 23.6 percent from the previous month. It is not difficult to predict that the domestic passenger car market will not be very optimistic in April due to the suspension of production by a number of vehicle manufacturers. Chen Shihua, deputy secretary general of the China Association of Automobile Manufacturers, said that from the perspective of automobile supply, the shortage of chips has not been significantly alleviated, while the rapid rise in the price of raw materials for power batteries has further pushed up the manufacturing costs of enterprises' products. the production and operation activities of automobile enterprises have been affected to a certain extent, and the overall situation is not as good as expected.

At the same time, there have been a number of domestic outbreaks recently, the difficulties of the main body of the market have increased significantly, and the smooth flow of the economic cycle has encountered some constraints, further increasing the new downward pressure on the automobile industry. Chen Shihua said, "the development of the automobile industry is facing the triple pressure of demand contraction, supply shock and expected weakening, and the task of stabilizing growth is still very arduous. Local governments should refine and implement national policies and measures on stabilizing growth as soon as possible, and enterprises should continue to actively take effective measures. "

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