Sales of SUVs, sedans and minivans fell to
224,000, according to the China Association
of Automobile Manufacturers. Total vehicle
sales, including trucks and buses, fell 79.1%
to 310,000.
Auto dealerships, cinemas and other consumer
businesses were ordered to stay closed after
the Lunar New Year holiday to help contain
the virus that emerged in central China
in December.
Sales “fell sharply due to the severe impact
of the new coronavirus epidemic,” a CAAM
statement said.
The government is easing controls in many areas
to revive economic activity. Auto factories are
reopening, but tens of millions of city dwellers
still are under travel and other curbs that weigh
on consumer spending.
Sales in the first two months of 2020 were down
43.6% from a year earlier at 1.8 million units.
Total vehicle sales were off 42% at 2.2 million.
Demand already was weak due to consumer
jitters about a tariff war with Washington, slower
economic growth and possible job losses.
Sales fell 9.6% last year, their second straight
annual decline.
The downturn is a blow to global automakers
looking to China to drive revenue growth amid
weak demand in the United States and Europe.
Forecasters say it will be weeks, maybe
months before the industry returns to normal
production levels. Automakers say the pace
depends on how fast suppliers can resume
delivering components.
Reviving the industry “could take longer than
previously expected due to labor and materials