US, WASHINGTON (NEWS OBSERVATORY) — Car sales in China in February showed a record collapse, as the outbreak of coronavirus held back buyers, which only increased pressure on automakers who already felt serious problems before the epidemic began, reports Reuters.
Car sales fell 80% in February, according to preliminary data from the China Association of Passenger Cars. According to the PCA, average daily sales improved by the end of the month compared to the first three weeks of February.
The outbreak paralyzed the industry in China at a time when companies were planning to take steps to deal with the two-year recession. Now, few take on the prediction of recovery times in the industry.
Over the past decade, automakers have invested billions of dollars in the world’s largest automobile market, betting on growth potential in China.
All car manufacturers, including Volkswagen market leader and Tesla electric car manufacturer to small local companies, felt a collapse as the outbreak of the virus, dubbed Covid-19, adversely affected demand and production.
The PCA said that wholesale sales of automakers and dealers fell by 86% in February.
Millions of companies in China are in danger, as consumers try to leave their homes as little as possible. In February, activity in the country’s manufacturing sector declined sharply, and the official figure fell to the lowest level in the history of observations.
Although the central government of the PRC emphasizes the importance of the automobile industry, it has not yet announced new support measures. Local governments, which are striving to achieve annual economic goals, have begun to develop their own incentive plans to increase demand.
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