Chinese Auto Stocks Drop as Troubles Pile Up

Chinese Auto Stocks Drop as Troubles Pile Up

Chinese auto stocks have skidded lower this year, as sluggish sales and supply-chain disruptions have made investors more pessimistic about the world’s largest car market.

The sector has been caught up in the broader volatility roiling Chinese markets, which had fallen sharply in recent sessions before clawing back some of those losses with a big rebound on Wednesday. Meanwhile, the war in Ukraine has boosted prices for metals and oil, triggering concerns that manufacturers’ costs will surge and that demand for gas-guzzling larger vehicles will be dented.





The international car industry faces some similar challenges, and global auto stocks have also fallen in 2022. But the pullback in Chinese shares has been steeper. As of Tuesday, an

MSCI Inc.

index tracking Chinese makers of cars and components had fallen 46% so far this year, compared with a 23% decline in the equivalent world index. 



Great Wall Motor Co.

, which is working with Germany’s

Bayerische Motoren Werke AG

, or BMW, to produce electric Mini vehicles in China, has seen its Hong Kong-listed stock fall by more than half this year through Wednesday. Shares in

Geely Automobile Holdings Ltd.

, whose parent company also owns

Volvo Car Corp.

,