China's passenger car sales fall 80% amid coronavirus epidemic
'Showroom traffic is very low'
Geopolitical Futures founder George Friedman discusses China, global trade and coronavirus.
Passenger car retail sales in China, the world's biggest auto market, fell 80 percent in February because of the coronavirus epidemic, one of the country's industry associations said on Wednesday.
The China Passenger Car Association said in a statement that China's overall passenger car sales dropped 80 percent, without giving a full sales figure for the month.
Workers assemble Audi A6 models at a factory in Changchun, in northeast China's Jilin Province, in February. (Zhang Nan/Xinhua via AP, File)
"Dealers returned to work gradually in the first three weeks of February, and their showroom traffic is very low,'' CPCA said, adding it expects February's sales drop will be the steepest of this year.
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Japanese automaker Toyota, the first major global automaker to report its February sales in China, said it sold 23,800 Toyota and premium Lexus cars last month, down by 70 percent from a year earlier.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TM | TOYOTA MOTOR CORP. | 174.40 | +1.02 | +0.59% |
| GM | GENERAL MOTORS CO. | 58.53 | +2.85 | +5.12% |
| VWAGY | VOLKSWAGEN AG | 8.78 | +0.04 | +0.46% |
The world's biggest car market is bracing for further bad news as efforts to curb the spread of the coronavirus, which has killed more than 2,900 people in mainland China, disrupts global supply chains and dampens consumer demand.
Toyota rival General Motors, China's second-biggest foreign automaker, said the industry will face "serious challenges'' in the first quarter this year, but anticipates the situation will ease in the second quarter, its China president Matt Tsien said in a post on GM's official WeChat account.
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GM hopes China's auto sales will report year-on-year growth in the second half of this year, Tsien added.