Chinese auto industry is preparing for the effects of coronavirusFebruary 1, 2020
Chinese automakers are gearing up for the effects of a deadly epidemic. Chinese automakers are gearing up for the effects of a deadly epidemic. According to insiders, it’s too early for a real panic, but it’s already realistic to think about the negative consequences.
It was previously clear that various automakers were temporarily shutting down their Chinese factories due to a new virus, which is currently featured on world news. “We expect total production to decline by 3% throughout the year, and by 15% in the first quarter,” says Aptiv’s financial director at Reuters. Cui Dongshu, secretary general of the China Passenger Car Association, told the same news agency that he is currently questioning his previous forecast for 1% growth in 2020.
The problem, among other things, is that people in certain areas simply no longer dare or are not allowed to go out. In Hubei, where the virus has spread, about 9% of Chinese automobile production is concentrated. At the same time, according to the same financial director, it is too early for real panic. “Losses can be fully compensated in the second quarter. We do not yet consider this problem as something that will play all year. ”
If sales of Chinese cars really fall this year, it’s not only because of the coronavirus. A similar decline in production was observed in 2018 and 2019. At the end of the year, conclusions were drawn that this trend will continue in 2020.
By the way, some experts claim that the Coronavirus can even increase car sales. Despite the many years of growth in the market, many Chinese still do not have a car, although in rural areas it may be needed in case of an inevitable outbreak. It is these circumstances that will prompt some Chinese to buy a four-wheeled car.
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