Chinese automakers see increase in profit during the first half

China’s automobile manufacturing sector saw growth in profit during the first half of this year, according to the China Association of Automobile Manufacturers (CAAM).

The automakers raked in 287.68 billion yuan (about $44.41 billion) in the period, increasing 45.2 percent year on year, according to the data.

The growth rate moderated from that recorded during the first five months.

Earlier data showed China‘s auto sales increased 25.6 percent year on year to over 12.89 million units in the first half of this year.

In June, auto sales totaled about 2.02 million units, declining 12.4 percent year on year, while auto production dropped 16.5 percent compared with a year ago to 1.94 million.

The production and sales of passenger vehicles indicated an obvious decline in June, according to CAAM, as they were affected due to the chips shortage crisis.

The chip shortage, which has hit automakers worldwide, emerges from a confluence of factors as automakers, which closed plants for two months during the coronavirus pandemic last year, rival against the sprawling consumer electronics industry for chip supplies. A factory fire suffered by Japanese chipmaker Renesas this year is also cited as a reason behind the chip shortage.