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China to Support Automobile Industry to Reduce Coronavirus Impact

Auto News - Published on Mon, 24 Feb 2020

Image Source: Auto China Coronavirus
China's Ministry of Commerce said that China's authorities will draw up and promote the policies that help further stabilize automobile consumption, so as to mitigate the impact from coronavirus outbreak. MOFCOM's Market Operation Department Deputy Director Mr Wang Bin said “Meanwhile, local governments are encouraged to adopt measures to stimulate automobile spending based on local conditions, such as relaxing the vehicle purchase restriction, facilitating auto replacement and boosting NEV transaction.”

Mr Wang said that there are multiple factors leading to the downturn. He said “The fewer workdays due to the Spring Festival holiday and the coronavirus outbreak should be blamed. Besides, the overall market climate is also part of reasons as China's auto industry has been experiencing a phase of adjustment since 2019. In the short term, China's auto consumption will be temporarily curbed because the epidemic extends the shutdown of vehicle sales outlets and delays consumers' car purchase action. However, the virus-cased impact will be provisional, and the pent-up consumer demand and growth potential will be quickly unleashed after the epidemic is contained.

According to the China Association of Automobile Manufacturers, China's auto sales were estimated to fall 18% over a year ago in January

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Posted By : Yogender Pancholi on Mon, 24 Feb 2020
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