Covid Disruptions Hammer China’s Auto Industry Profits

Auto industry profits in China are suffering under the pressure of rising raw material costs, a supply chain crunch and shrinking demand caused by Covid-led lockdowns.

Total profits of the auto industry in the first quarter fell 11.9% year-on-year to 115 billion yuan ($17.35 billion), according to data released Wednesday by the National Bureau of Statistics. Revenues of automakers and auto parts makers grew just 0.9%, while operating costs jumped by 1.8% from the same period last year.