Retail sales of new passenger vehicles in China will fall 32% to 1.1 million in April as coronavirus outbreaks disrupt vehicle production and shipments in several regions, the China Automobile Dealers Association predicted this week.
Virus outbreaks in east and northeast China, key hubs for auto parts and vehicle assembly, remained severe throughout the month, forcing many workers to self-isolate at home. as government authorities put in place lockdown measures, the trade group said.
Parts supply shortages have also led automakers to halt vehicle production in central and southern China, the trade group added.
According to the CADA tally, daily retail sales of passenger vehicles, including sedans, crossovers, SUVs and multi-purpose vehicles across China, fell 39% to 26,700 in the second week. of April, after falling 32% to 24,600 in the first week.
In mid-April, automakers in Shanghai and the northeast city of Changchun were allowed by local governments to resume production and shipments despite ongoing virus outbreaks.
As a result, the decline in vehicle sales showed signs of slowing.
In the fourth week of April, CADA expected daily passenger vehicle retail sales to fall 26% to 69,000 after falling 35% to 36,000 in the third week.
While Shanghai has largely maintained a citywide lockdown, which began in late March, a growing number of other major Chinese cities have resorted to partial lockdowns to curb the spread of the coronavirus.
This will make it difficult for the new vehicle market to recover quickly.
“Resident income and consumer confidence in closed areas have also been affected to some extent, further dampening the recovery of the auto market,” CADA noted.