(Yicai Global) Oct. 18 -- Automakers sold 15 percent fewer cars than anticipated in China between January and August because of the global shortage of semiconductors, according to an executive at Horizon Robotics, a Chinese startup that develops artificial intelligence chips for smart vehicles.

Manufacturers could have sold 2.4 million more vehicles in the country in the first eight months of this year had it not been for the scarcity of auto chips, Xu Jian, Horizon Robotics’ chief ecological officer, said at the 2021 China Auto Supply Chain Conference held in Chongqing on Oct. 15 and 16.

Chinese producers of everything from autos to smartphones and televisions have been affected by the chip shortage since the end of last year.

The shortage will not ease this quarter, Changan Automobile Vice President Yang Dayong told the conference, and it is likely to continue until the middle of next year.

The shortfall of auto chips has impacted about 15 percent of the Chongqing-based company’s sales and revenue this year, Yang said. Changan Auto is looking for alternative chips to deal with the issue, he said, noting that the firm is taking action to sign deals with providers to ensure supplies in the mid- to long-term.

The demand for chips has greatly increased due to the shift to electric, intelligent, and connected vehicles, said Liu Dong, deputy secretary-general of the China Association of Automobile Manufacturers.

Liu said the cost of the semiconductors used in each car jumped to USD475 last year from USD300 in 2010, and it is expected to reach USD600 by 2030. The cost of those in electric vehicles is five to six times higher than that of conventional cars, he added.

China’s auto chip industry is still weak and it got into control chips relatively late, Liu said. Chinese firms will gradually use more domestic-made chips to increase their market shares, he added.

Editor: Futura Costaglione