The collapse of the car market of China: the cars produce, but do not buy them

The collapse of the car market of China: the cars produce, but do not buy them

FineAuto

Despite the fact that China almost overcame the epidemic Covid-19, and the automobile industry of the country resumed production by 97 percent, coronavirus still contributed to the decline in consumer demand almost nobody buys.

Currently, the automotive industry in China came out at last year’s level of performance.

“Overall utilization of the production facilities of the automotive industry increased from approximately 60 to 97 percent and the recovery ratio of employees to jobs has grown from about 50 to 82 percent,” – said Deputy Minister of industry and Informatization of China Blue Gobina.

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However, a new problem faced by the Chinese automotive industry is the low market demand for finished cars. Since most of the machines produced are stored in the warehouses of car companies, and production rates continue to rise, car manufacturers can further reduce performance.

According to the South China Morning Post on March 29, China ranks third in the number of cases Covid-19, identified in the country (81 439). The country from infection with the coronavirus had died of 3.3 thousand people.

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