09 Apr 2020
Posted in Automotive
China’s car market has sprung to life, but is far from recovered, says GlobalData
Following the news that China’s passenger car market was down 41% in March;
David Leggett, Automotive Editor at GlobalData, a leading data and analytics company, offers his views:
“Although a 41% year-on-year drop for March looks large, it is a big improvement on February’s 80% drop. This latest market news from China will be taken as a positive sign that a COVID-19-battered industry is slowly getting back to its feet.
“The car market total exceeded 1 million units in the month, a level suggesting that some pent-up demand is quickly coming through, served initially by abundant stocks. Vehicle manufacturers are also reporting more footfall in dealerships, another positive, though it is still well below normal.
“The key thing for China is to rebuild confidence – for businesses and consumers – in the coming months. We believe it will be some time before China’s auto industry returns to pre-crisis levels.
“The authorities in China will also continue to be very wary of the dangers of a further major COVID-19 outbreak and the damage to confidence and the economy that would bring.”