China Faces Disruption in Auto Sales of 1 Million Units Due to COVID-19 Impact

[Asia Economy Beijing=Special Correspondent Park Sun-mi] Due to the spread of COVID-19 in China, disruptions in automobile production this year are expected to inevitably cause a sales impact of about 1 million units.

On the 14th, the Global Times of China reported, citing the China Association of Automobile Manufacturers, that the anticipated sales decline due to the COVID-19 outbreak this year is expected to exceed 1 million units.

The association expressed concern, stating, "The impact of COVID-19 on China's automobile industry will be greater than that of SARS in 2003," and added, "It will deal a more severe blow to an automobile industry that is already undergoing adjustments." They further noted, "Demand has decreased and production is delayed. Some mid-sized automobile manufacturers are also facing capital crises."

The fact that many automobile manufacturing plants are located in regions where COVID-19 is spreading intensively is another factor that could cause significant disruption.

The Global Times reported that automobile production in Hubei Province, which has the highest number of confirmed COVID-19 cases and deaths, accounts for about 8-9% of China's total. Guangdong Province and Zhejiang Province, which also have many confirmed cases, are important automobile manufacturing hubs. Due to the impact on these regions, nationwide automobile assembly and parts supply are currently experiencing disruptions.

Already, in January of this year, China's automobile sales showed a clear downward trend. The number of vehicles delivered to dealerships last month was 1.61 million, a 20% decrease compared to the same month last year. This is the largest monthly decline since January 2012. In particular, electric vehicle sales plummeted by a staggering 54%, leading the overall decline in automobile sales.

This content was produced with the assistance of AI translation services.