The car market of China: the crisis and new challenges

FineAuto
The car market of China: the crisis and new challenges

After a disastrous February, and easing of the quarantine restrictions, the Chinese car market began to recover, however their volumes are still very far away.

China took the first blow coronavirus infection COVID-19, the first to introduce tough quarantine the epidemic, the cities of Wuhan, and the first quarantine was relaxed – after the authorities were convinced that the spread of the virus has been contained. In February a large part of the Chinese economy was paralysed that the most dramatic impact on new car sales – they fell by 79% (compared to February 2019) to 310 thousand pieces.

By the beginning of the third decade of March to work returned more than 90% of the Chinese dealers, but trade is sluggish. The danger of the repeated outbreaks of the disease greatly complicates communication: buyers and sellers have to communicate in masks and gloves, is all-embracing temperature control customer cars for test drives have to constantly disinfect and paste film. In General, it’s a hassle. In addition, some clients are just afraid to leave the house for fear of catching COVID-19, and the other delaying the purchase of expensive things, believing that the money may be needed for more urgent needs.

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China Association of automobile manufacturers (CAAM) reports that in March sales of new cars dipped by 43% to 1.46 million vehicles, and China Association of passenger transport said that sales of passenger cars declined by 40.8% to 1.08 million

Nevertheless, the CAAM believes that the market will recover quickly, and the General decrease of sales for the year will be about 10%. The publication Automotive News China reports that the Chinese authorities as measures to support the market to weaken the environmental requirements for new cars – that is, to follow the example of the American President Donald trump.

Meanwhile, the American car market in March fell by 39%, while in Western Europe the demand for new cars in the first spring month has decreased from 52.9%. The peak of the epidemic in either the US or Europe has not yet passed.

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