Car production in China may face disruption due to supply issues related to imported electronic chips, according to Volkswagen.
Media reports indicate that the country’s auto industry is reliant on these chips for electronic parts such as electronic control units (ECUs) and electronic stability programs (ESC). A Volkswagen spokesperson told the media that the issue was not limited to the company’s units in China. The potential shortage was attributed to the uncertainty caused in the auto parts industry due to the COVID-19 pandemic.
Notably, the German auto giant has three manufacturing JVs in China, with FAW, SAIC, and Anhui Jianghuai. Through these partners, the company sold 4.23mn cars in China last year. It also has a 600,000-unit annual electric vehicle production capacity in the country.