Just as we feared few weeks back, the continued spread of this deadly coronavirus has caused serious havoc in the international auto market, most especially in China. From what we learnt, the sales of new cars alone have dropped down to 92% in the first half of this year’s February.
China's car sales for the month of February has dropped by 92% due to the deadly coronavirus
The worst part of this fall occurred in the first week of February when it scored a nationwide average of 811 cars. This recent statistics is likened to a 92 percent year-on-year reduction.
This massive drop according to China Passenger Car Association (CPCA) is due to the outbreak of the deadly virus. They are however positive that the number will go up as soon as they open new showrooms.
According to Cui Dongshu, Secretary-General of CPCA:
“There was barely anybody at car dealers in the first week of February as most people stayed at home,”
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“Very few dealerships opened in the first weeks of February and they have had very little customer traffic.”
Many automakers are starting to shut down operations globally due to unavailability of parts needed for production
Prior to the latest announcement from the local government, top automakers such as Nissan and Honda are already postponing the date for the re-opening of their manufacturing plants until at least 11th of March this year.
As the deadly virus continues to spread to other countries, the global supply chain for cars has been dealt a big blow since companies across the world find it hard to get their hands on parts needed for production.
It appears Jaguar Land Rover will soon run out of spare parts if the situation persists. FCA had already stopped the production of 500L at its Serbian factory.