CHINESE automaker geely said its profits had more than halved as a semiconductor shortage and Covid restrictions hit demand for vehicles and disrupted production, reports London’s Financial Times.
Pre-tax profits dropped 55 per cent to CNY1.3 billion (US$191 million) in the first six months of the year, compared with the same period in 2021, the group said. Total vehicle sales fell three per cent to 613,845, though revenues rose 29 per cent to CNY58.2 billion.
Car sales were one-third of its annual target of 1.65 million vehicles, but the group expected demand to recover during the second half of the year and said it planned to hit its target.
The fall in profits is the latest sign of the impact of China’s persistent Covid lockdowns on its once high-flying companies. Geely was further hit by a chip shortage that has shaken the global auto industry.
