According to a survey of 1,271 second-hand car markets and on-site businesses provided by automobile associations and second-hand car associations (dealers) in 31 provinces and cities in China, 97.56 percent of vehicle trading markets in China have returned to work as of March 23, while 98 percent of on-site deals have resumed work, as announced by the China Automobile Dealers Association (CADA).
Meanwhile, China’s Ministry of Commerce (MOC) has announced that the Beijing municipal government is working on policies and measures to boost car consumption. In the first half of the year, Beijing will release no less than 100,000 new energy vehicle license plates, which will boost vehicle consumption of families in Beijing. The move is foreseen to boost retail sales in Beijing by RMB 20.0 billion ($2.8 billion) in 2020.
Moreover, Hangzhou city in Zhejiang Province has issued guidelines for boosting consumption and promoting economic growth, which include relaxing restrictions on car purchases, formulating policies for exchanging old cars for new ones, and providing support for farmers in rural areas to buy cars.
As previously reported by SteelOrbis, in the January-February period this year production and sales of automotive vehicles in China amounted to 2.048 million units and 2.238 million units, respectively, down 45.8 percent and 42.0 percent year on year. “China’s vehicles sales in 2020 will likely decrease by eight percent,” stated Cui Dongshu, secretary general of the China Passenger Car Association (CPCA).
The sharp declines in vehicle output and sales in the first two months and the gloomy forecast for the whole year have alerted the government as the vehicle industry is regarded as an important sector in promoting economic development.