Car sales in China plunged 18% in Jan due to Covid-19

Car sales in China plunged 18% in Jan due to Covid-19

The crippling effects of the novel coronavirus (Covid-19) outbreak in China is trickling across several industries, but things could turn for the worse. According to a CNN report, China’s Association of Automobile Manufacturers (CAAM) revealed that major car brands sold less than two million cars in January, corresponding to an 18% drop from the same period last year.

The big drop is undoubtedly caused by Covid-19, but the organisation said declines could be even steeper in February. It said the virus will deliver a “huge shock” to the car industry, causing a worse impact than the SARS epidemic did in 2003. At the time, car sales in China slowed to 13% in April 2003 and 8% in May, but it rebounded pretty quickly.

But Covid-19 came at a time of huge stress in the country’s automotive scene, further fuelling a slump which saw car sales in China dropped for 19 consecutive months. The virus has already claimed the lives of over 1,300 people and infected more than 60,000, but the car industry could fall deeper into recession, the publication states.

It has already disrupted China’s auto supply chain, with parts manufacturers and major car production plants being shut temporarily due to China’s sweeping quarantine measures to contain the virus. This, the CAAM said, could create a butterfly effect on the global car industry.

On a lighter note, several automakers have resumed factory operations. As of February 12, 2020, 59 out of 183 car factories in China have reopened, but experts worry that car plants around the world could grind to a halt if parts suppliers in China continue to remain shut.

Looking to sell your car? Sell it with myTukar.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Matthew H Tong

An ardent believer that fun cars need not be fast and fast cars may not always be fun. Matt advocates the purity and simplicity of manually swapping cogs while coping in silence of its impending doom. Matt's not hot. Never hot.

 

Comments

  • Dr Strange on Feb 17, 2020 at 11:20 am

    Someone said no such thing a mere virus could have such huge effect as to lower sales and lower petrol prices. I guess he has more PHDs and degrees that all the economist and financial experts in the world combined. So this is all fake news that superbly outstandingly expert person.

    Like or Dislike: Thumb up 9 Thumb down 1
  • azrai on Feb 17, 2020 at 1:26 pm

    In Turkey, people are opting for used car instead.

    Like or Dislike: Thumb up 2 Thumb down 0
  • yoshi2 on Feb 17, 2020 at 1:50 pm

    yeah,everything is fine and dandy everywhere,people are drinking,eating,vaping,streaming,snoring ,shopping as usuall.
    All these faux news on virus and cruise paasengers being locked up in windowless cabins MUST STOP

    Like or Dislike: Thumb up 1 Thumb down 1
 

Add a comment

required

required