China auto sales slump in March on Covid curbs

SHANGHAI, Apr 11 (Reuters): China auto sales plunged in March as the country's curbs to rein in Covid-19 outbreaks took their toll, while Tesla Inc was among automakers feeling the pain of limits on production.

Sales in the world's biggest car market tumbled 11.7 per cent in March from a year earlier to 2.23 million vehicles - its first decline in three months and contrasting sharply with an 18.7 per cent jump in February, according to the China Association of Automobile Manufacturers.

"The recent pandemic situation has been quite severe and so the figures in March were not too good, and we currently do not see much improvement in April," said Chen Shihua, the association's deputy secretary general.

He added automakers were pressing the government for supportive measures such as cuts to the auto purchase tax.

China has imposed strict lockdowns to contain the spread of the highly contagious Omicron variant, including in Jilin province and Shanghai.

Tesla has suspended production at its Shanghai factory since March 28, while Volkswagen's Shanghai joint venture paused operations this month. Volkswagen and Toyota Motor Corp joint ventures with their Chinese partners in Changchun, Jilin's capital, have been suspended since mid-March.