The shortage was worsened by a fire in Renesas Electronics' chip factory in Japan in March. In 2019, automotive groups accounted for roughly a tenth of the $429 billion semiconductor market, according to McKinsey, with NXP Semiconductor, Germany's Infineon and Renesas among key suppliers to the sector. Automakers, including Nissan Motor, Ford Motor and Nio Inc said they cut production due to the chip supply shortage. Li Shaohua, senior official at China Association of Automobile Manufacturers, said chip supply shortage hit auto production by 5% to 8% in the first two months this year and expects the impact to ease from the third quarter of this year. As a result, China Automobile Dealers Association, said it expects car inventory to continue to drop in China as the chip shortage hits overall auto production. Supply of some car models might not be able to meet demand, it said.