China's new auto sales drop for 6th month

New vehicle sales in China dropped in October for a sixth straight month. Lower production due to a global semiconductor shortage was a key factor in the decline.

The China Association of Automobile Manufacturers said on Wednesday 2.33 million new vehicles were sold in the country last month, down 9.4 percent from a year earlier.

Sales of passenger cars, which account for more than four fifths of all automobile purchases, fell 5 percent.

Japanese automakers fared even worse. Mazda and Nissan reported declines of 22 percent. Sales at Toyota and Honda both slumped nearly 20 percent.

The industry group says the impact of the chip shortage is easing, but higher prices of materials and electricity are weighing on manufacturers.