New car sales in China fall 5 months in a row

Sales of new cars in China fell for the fifth straight month in September due to a drop in production amid a semiconductor shortage and electricity supply restrictions.

The China Association of Automobile Manufacturers said just over 2.06 million new vehicles were sold in the country last month. That's down 19.6 percent from the same month a year earlier.

Sales of passenger cars, which account for more than 80 percent of all automobile purchases, fell by 16.5 percent.

The association said car production decreased due to a global shortage of semiconductors, as well as limited electricity supply in many parts of the country. The energy restrictions were imposed amid surging coal prices and a tightening of environmental regulations.

Toyota reported a 35.9-percent decline in sales in China last month. Honda said its sales fell 28.1 percent and Nissan 26.2 percent.

The association said the impact of the chip shortage and electricity restrictions could weigh further on the automobile industry despite steady demand for automobiles.