Automotive and New Mobility / 19 February 2020

Post Corona – How the virus outbreak could affect car consumer behavior in China

People across China display remarkable unity as they brace for wide-ranging measures to protect themselves against possible infection from the coronavirus. Could their inclination to avoid big crowds as well as their emerging health awareness offer opportunities for the country’s auto sector?

Passenger vehicle sales in January 2020 have been down by some 22 percent year-on-year. An early Chinese spring festival had already let anticipate a pressure on car sales at the beginning of the year; yet, this first month’s unexpected steep decline undeniably carries some consequences from the coronavirus outbreak, whose momentous consequences unfolded in the second half of the month. Without any doubt, the whole extent of the impact will be seen in February, with sales forecasts pointing to a significant decrease: at least 50 percent, if not even more, down from the previous year. But not only sales are affected by the spread of the virus, the entire industrial chain has been suffering from the sudden standstill in China – parts supply broken down, entire production cycles shut down. The auto sector, just like other industries, has been hit hard by the recent health crisis. And the outlook looks grim, at least for the first quarter of the year.

To learn more and review the whole article, please feel free to download the pdf file by clicking the right button.

Photo source: Reuters.com

by Klaus Paur

More about:

#consumerbehavior #automotive #coronavirus #health #newmobility

Print:  

Share this post: