The China Passenger Car Association (CPCA) has stated that it expects sales of vehicles in China will slump in the January-February period because of the impact of the coronavirus. “Due to the outbreak of the coronavirus, vehicle sales in the January-February period will likely see a year-on-year decline of 25 percent, or even worse to 30 percent,” stated Cui Dongshu, secretary of the China Passenger Car Association (CPCA).
Specifically, there will be three negative impacts due to the coronavirus. First of all, the production chain of the auto industry has been halted in Hubei Province and other regions, which will result in a supply shortage of vehicles. Secondly, large promotional activities have been cancelled, which will exert a negative impact on the marketing activities of dealers. Thirdly, the virus and related quarantines will reduce people’s income and so they will be less willing to purchase cars.
However, Mr. Cui also said that those consumers who relied on online car-calling services may now prefer to own their own private cars due to the coronavirus, which could stimulate car purchases to some extent.