Amidst Coronavirus Scare, China's Auto Sales Drop 79 Percent in February, Biggest Plunge Ever

Amidst Coronavirus Scare, China’s Auto Sales Drop 79 Percent in February, Biggest Plunge Ever

by Jyoti

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(Source: Reuters)

China Association of Automobile Manufacturers expects gross sales to drop by greater than 10 per cent within the first half of this yr, as a result of coronavirus affect.

  • Reuters
  • Last Updated: March 12, 2020, 1:48 PM IST
  • Edited by: Chhavianshika Singh

Auto gross sales in China plunged 79 per cent in February, marking their largest ever month-to-month decline, with demand pummelled by the coronavirus outbreak. Sales on the earth’s largest auto market tumbled to 310,000 autos from the identical month a yr earlier, falling for a 20th straight month, the China Association of Automobile Manufacturers (CAAM) mentioned. “China’s auto sales for February returned levels not seen since 2005,” mentioned Chen Shihua, a senior affiliation official. Sales of latest vitality autos, which embody battery-electric vehicles, contracted for the eighth month in a row.

A CAAM official informed Reuters final month that gross sales are prone to drop by greater than 10 per cent within the first half of this yr. If the outbreak is successfully contained in China earlier than April, the decline might be round 5 per cent for the entire yr, he added. In Hubei province the place the outbreak started and which is a serious automobile manufacturing hub accountable for almost 10 per cent of China’s output, Dongfeng Motor Group Co Ltd and its companions Honda Motor, Renault SA and Peugeot SA have all mentioned they’re delaying the restart of manufacturing.

Tesla’s manufacturing and supply plans in Shanghai, have additionally been disrupted. However, after authorities in Wuhan on Wednesday lifted restrictions on a restricted variety of key industries within the metropolis and allowed some individuals to return to work, Honda resumed restricted output at a automobile plant within the metropolis.

Nissan Motor has additionally mentioned it plans to partially resume manufacturing in Xiangyang, one other metropolis in Hubei, in addition to its plant in Zhengzhou, Henan. Industry-wide auto gross sales fell 8.2 per cent final yr, pressured by new emission requirements in a shrinking financial system and commerce tensions with the United States.

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