SHANGHAI (Reuters). China’s Auto Association estimates April sales dropped 48% in China due to the zero COVID-19 policy that shut down factories, restricted traffic to showrooms, and slowed spending.

It is believed that this estimate represents the sharpest drop in global auto sales sales since February 2020 when, sales were down 79% over a previous year.

According to the China Association of Automobile Manufacturers, car sales could drop 12.3% in the first four month of this year compared with a year ago.

This is just the latest indication of China’s economic difficulties in coping with a coronavirus epidemic in Shanghai.

Based on the retail sales figures for April 1, 3, and 4, overall sales estimates were also lower than the previous one.

China Passenger Car Association estimates that China’s retail passenger vehicle deliveries were 39% less than a year ago in April.

Shanghai’s malls, shops and showrooms were closed for a month. Shanghai’s 25 million inhabitants were also unable to order online beyond their daily needs.

Nomura’s analysts believed that half of China’s cities were in full lockdown or partially by April. There was growing danger of recession.

According to a survey conducted by a group of Chinese auto dealers, 34 dealerships had closed in April due to COVID-19 measures. The majority were shut down for over a week.

The sales of electric vehicles was booming before the Shanghai lockdown. Tesla’s sales in China had jumped 56% in the first quarter, while sales for EVs from its larger rival in China, BYD, had quintupled.

Three of China’s leading EV producers reported lower sales this week.

Xpeng, NIO Inc, and Li Auto Inc fell by 41.6% and 49% respectively, compared to March according to data provided by the companies.

SAIC Motor in China, the largest Chinese automaker by sales and a partner with Volkswagen ETR: and General Motors NYSE: reported a 60% decrease in its April sales.

According to a memo from Reuters, Tesla (NASDAQ) indicated it intends to raise output at Shanghai’s plant to prelockdown levels by May 16th.

This disruption at Tesla’s plant was one of the more prominent outcomes of Chia’s recent COVID-19 epidemic control measures. It is the largest COVID-19 case to date and has required strict controls.

However, Tesla’s success comes after a survey revealed that many Japanese businesses are having difficulty reopening factories in Shanghai. This indicates problems with the municipality’s efforts to put key business back to work.