China’s auto industry struggles to motor ahead post-coronavirus lockdown

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Sales figures appear to be gradually picking up, so workers in China’s car-production capital, Wuhan, have been clocking overtime. AsiaNewsNetwork

That represents a 5.6 percent drop year on year, but it is a vast improvement from the 79 per cent plunge registered in February, the industry’s worst month, as sales came to a near standstill.

While there were initial concerns about unfilled order books, anecdotal evidence so far indicates that a growing number of people are keen to buy their own vehicles to avoid public transport, though most prefer foreign makes. “ will put significant financial pressure on all car brands in China, especially those who were unable to secure a significant market share such as DS, Jaguar and Suzuki,” the market insights firm said.During the 2008 financial crisis, the Chinese government announced a mammoth financial stimulus package amounting to nearly US$568 billion – or about 7 percent of gross domestic product at the time.

“Customers who were unable to buy a car over the last few months are now eagerly visiting our dealers,” Mr Wollenstein wrote in a note posted on LinkedIn.

 

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