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Carmakers around the world have been battered by coronavirus. Many are relying on government help, as the pandemic slammed the global economy into reverse and forced people to stay at home.

Canyon Bridge Capital Partners LLC, a Chinese-backed private equity fund known for being blocked by the Trump administration from buying a US chipmaker, has shifted its attention to Europe and is set to complete a new investment in a major European technology company in the coming months.

Carmakers have also made efforts to build their own battery factories. In early May, Volkswagen announced an investment of 450 million euros to build a lithium battery plant in Germany.

ChangXin was one of the earliest integrated circuit companies to invest in Hefei. "The city has now formed an integrated circuit industry cluster, which includes 253 companies," said Zhu Shengli, director of the Hefei development and reform commission.

Car dealers are under greater pressure because they had to increase car inventories to fulfill their seasonal obligation in the last month of the third quarter. Meanwhile, vehicle prices decreased which meant lower profits.