Chinese auto sales dropped by 92% due to the coronavirus

The corona virus seriously affected China’s auto industry when sales dropped to a record.

In the first half of February, the country’s auto sales decreased by 92%. Particularly, this figure increased to 96% in the first week of February when only 811 cars were sold nationwide.

According to the China Passenger Car Association (CPCA), this serious sales decline comes from the fact that the majority of auto dealers are closed due to corona virus concerns. Besides, consumers are also afraid of going out and few people are interested in buying a new car in the middle of a pandemic.

Most of the auto dealers closed in the first week of February. The reason was that no one dares to go out. Only a few dealers were still open and of course, sales were not significant, the General Secretary CPCA said.

In response to this situation, Geely has launched a contactless sales service. In fact, this is a form of online car buying, customers choose cars online and the company will deliver them to home. Honda and Nissan also closed factories in China until March 11, according to the latest local government notice.

The corona virus affects not only China’s automobile industry but also the global supply chain. Many firms do not produce vehicles in a given country but assemble parts manufactured in different countries and China is the largest supplier.

Fiat Chrysler Group was forced to stop production of the Fiat 500L at its plant in Serbia while Jaguar Land Rover began to run out of models because it could no longer be assembled.

The corona virus (Covid-19) began an outbreak in mid-December 2019 in Wuhan City, China. Currently, the corona virus is detected in more than 29 countries and territories with more than 78,000 cases. Incubation period ranges from 2 to 14 days with symptoms including fever, cough, shortness of breath.