The decrease in China's vehicle sales for a fourth consecutive month widened to 17.8 percent in August from a year earlier, weighed on by the continued global shortage of semiconductors, data from the China Association of Automobile Manufacturers (CAAM) revealed on Friday. 

The data showed that the overall sales in China stood at 1.8 million vehicles in August.

The CAAM attributed the fall in August to two factors. First, a COVID-19 surge in Malaysia has led to tight production and supply of automotive-grade chips, and the shortage of chips for enterprises has further intensified. 

Still, due to the high base effect in the same period last year, the year-on-year decline in passenger car production and sales has widened compared with the previous month, the CAAM added. 

Second, the change in national emission regulations in China caused a short-term market fluctuation, which affected the demand for trucks, and the production and sales of commercial vehicles, the CAAM said. 

In the first eight months of 2021, China's vehicle sales jumped by 13.7 percent from the same period a year ago, as the market recovered from COVID-19 lows.

Chen Shihua, a senior official from the CAAM, said on Friday that 2021 growth is expected to be slower than the previously forecast of 6.5 percent.

NEVs thrive

In August, the production and sales of new energy vehicles (NEVs) were 309,000 and 321,000 respectively, a year-on-year increase of 1.8 times for both. 

During the period, the penetration rate of NEVs increased to 17.8 percent, and the penetration rate of new energy passenger vehicles reached about 20 percent.

With this development, China is expected to achieve the mid- and long-term planning target of 20 percent of NEVs in 2025 ahead of schedule, the CAAM said.

Car exports fresh record

In August, Chinese auto companies exported 187,000 vehicles, an increase of 7.5 percent and 1.6 times, respectively, on monthly and yearly bases, the CAAM data showed.

In terms of vehicle types, on a yearly basis, passenger vehicle exports were 154,000 units, up 1.9 times; commercial vehicle exports were 33,000 units, an increase of 85.7 percent.

NEV export growth contributed 35.2 percent in August.

From January to August, auto companies exported 1.19 million vehicles, a year-on-year increase of 1.3 times.