In remarks that run counter to other warnings on the longevity of the semiconductor crisis impacting the global auto industry, SAIC’s chairman has said that he expects the situation in China to return to normal in the third quarter.
The Chairman of Shanghai Automotive Industry Corporation (SAIC), Chen Hong, said during the company’s annual shareholders general meeting earlier this week that “the supply shortage of chips can be alleviated in late July. In June, original equipment manufacturers (OEM) across the country struggled, but the situation will basically return to normal from the third quarter.”
Go deeper with GlobalData
When questioned further, Chen added that the chip shortage would not affect the company’s annual target of selling 6.8 million vehicles.
The company’s President, Wang Xiaoqiu, said that the lack of chips had indeed had a great impact on the company, but he reiterated that SAIC’s overall performance had not been affected. “After the chip supply improves in the third quarter, stocks will be replenished,” Wang added.
Chen Hong also pointed out that the shortage of chips had changed the relationship between OEMs and chip makers. “Originally, OEMs did not have direct contact with chip manufacturers. After the chip shortage crisis, we also began establishing direct contact with chip factories. With the proliferation of smart vehicles, SAIC is also accelerating its chip supply chain.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
