The Chinese market collapsed by 42,4% in the first quarter of 2020
- Due to the coronavirus crisis, industrial and commercial activity slowed down considerably in China during the first quarter of 2020. Consequently, the Chinese vehicle market (PC+UV) suffered and fell by 20% in January, more than 80% in February, and more than 43% in March, compared to the same months one year ago. Totally, during the first quarter, the Chinese market decreased by 42%.
- The Chinese Association of Automobile Manufacturers (CAAM) expects that the Chinese auto market will recover significantly in the second quarter but it is too soon to clearly foresee the consumers reaction after the crisis.
- The most affected region are the ones where strict quarantines where imposed by the Chinese government and also the most populated and the richest: Wuhan, Beijing, Shanghai and Guangzhou.
- All non-essential business activity has been cut off across much of the country and as a result car sales have come to a virtual halt. Automobile factories are the first to be affected, but as a ripple effect, many foreign automobile factories are also impacted, in particular because a part of their components comes from Chinese suppliers or from foreign suppliers established in China.
- The factories in China has restarted very gradually, from mid-March in the best of cases, because there are many logistical and supply chain issues to be resolved, as well as the difficulties of returning to work for employees. March production (-44,5%) showed lower decreasing rates compared with those in February (-80%).
- Dealers will also gradually resume operations but certainly lost sales will not be cached up easily, despite government support and the possible purchase of a second vehicle in households, in order to avoid public transport.
Contact us: info@inovev.com