Just as feared, the coronovirus outbreak is showing its detrimental effects on the Chinese market as sales of new car fell by 92 percent in the first half of February.
The drop in sales was even worse during the first week of February, scoring a daily average of just 811 vehicles nationwide, translating into a year-on-year 96 percent decrease.
According to the China Passenger Car Association, this massive sales slump is a temporary effect of the outbreak, expecting the numbers to go up as more showrooms reopen.
Read More: Japan Sets Up Coronavirus Task Force To Help Its Car Industry
“There was barely anybody at car dealers in the first week of February as most people stayed at home,” said CPCA secretary general Cui Dongshu. “Very few dealerships opened in the first weeks of February and they have had very little customer traffic.”
As a response to the issue, Chinese car maker Geely launched a new “contactless” sales service that lets customers purchase their cars online and have them delivered to the door step.
Other companies like Nissan and Honda are further delaying the re-opening of their manufacturing plants until at least March 11, following the local government’s latest announcement.
The Chinese shutdown has already disrupted not only their own market but the global supply chain as well, with car makers not being able to receive the parts necessary for manufacturing their vehicles.
FCA were forced to halt production of the 500L at their factory in Serbia, while Jaguar Land Rover is also going to run out of parts if this situation continues.
