Oct 20 (Reuters) - Car parts supplier Forvia's

organic sales growth was 4.4 percentage points slower

than global car production in the third quarter, largely due to

lower production levels at its two main clients in China, the

French group said on Monday.

Shares of the company, which makes car parts from lights and

electronics to seating solutions, fell more than 5% in early

trading.

Strong performance of Chinese automaker Chery - with

whom Forvia recently signed a letter of intent for global

strategic cooperation - only partially offset the slowdown at

BYD and Li Auto ( LI ), it said.

BYD has slowed down and cleaned up its stock, which meant a

temporary fall in production numbers, Forvia's finance chief

Olivier Durand told journalists in a call.

Auto production grew 9.8% in China, while Forvia's sales

there fell 7.4%. As a result, the group's organic sales were

flat, even as global auto production grew 4.4%.

"We are continuing to develop with our most important

customers, but also with new ones," Durand said, naming Huawei,

Xiaomi ( XIACF ) and Alibaba ( BABA ) as examples of a "new

generation" of companies entering Forvia's clientele in China.

However, Forvia sees more uncertainty and volatility in

fourth-quarter sales volumes, with worldwide light vehicle

production expected to fall by 2.8% amid tensions on supply and

logistic chains.

Earlier in October, Nexperia warned carmakers and their

suppliers that it could no longer guarantee the delivery of its

chips, the European Union's auto association ACEA said.

"Since the shortage periods, we have set up monitoring,

substitution and active approval organisations, so we have

everything in place to deal with this situation," Durand said.

A temporary stoppage at Stellantis' ( STLA ) plants in

Europe is also expected to have an impact of "a few dozen"

million euros on Forvia's sales in the final quarter of 2025, he

added.

Forvia's quarterly sales fell 3.7% to 6.12 billion euros

($7.14 billion) on a reported basis, which included a

238-million-euro hit from unfavourable currency exchange

conditions, mainly related to the euro's depreciation against

the U.S. dollar and the Chinese yuan.

Despite the mounting headwinds, Forvia confirmed its outlook for

the year, as it continues to implement its cost reduction

programme.

($1 = 0.8575 euros)