China is one of the largest automotive sectors around the globe. It is the most loved destination for any automobile company and has proved itself as it generates the maximum number of sales compared to any other country. According to the data collected from China, approximately 25 million vehicles were sold in the year 2019. However, 2020 has not been fruitful for the companies so far. The sales of cars declined in the initial months of the new year, and the novel coronavirus (Covid-19) is one of the major reasons for this breakdown.
January saw a total of 21.6 percent decline as compared to that of last year. Till mid of February, only 4,909 vehicles were sold, which is almost 92 percent less than 59,930 vehicles sold in the same month in the previous year.
The China Passenger Car Association felt that the spreading of the coronavirus in the country is one of the biggest reasons for the fall of the automotive sector in China. Thousands of people have lost their lives, and many are in a severe position because of this deadly virus. Hence, people have started taking precautions and are avoiding stepping out of their houses.
The car showrooms are empty, hence most of the dealerships remain closed. Many companies like Nissan and Hyundai have decided to delay the restarting of their manufacturing plants. Some of the companies have stopped production after seeing the decline in the sales of the auto market. Other reasons for the decline in sales of automobiles can be the slower economy and trade tensions with various countries, including the U.S. The bright side is that even if 2020 sees fewer sales, the phenomenal sales of 2019 can stabilize the market.
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