08 Jun 2020
Posted in Automotive
China’s vehicle market gains by 12% in May 2020, reinstates confidence in auto industry, says GlobalData
Following the news that vehicle sales in China rose by 12% in May 2020 to 2.14 million units according to preliminary data released by the China Association of Automobile Manufacturers (CAAM);
David Leggett, Automotive Analyst at GlobalData, a leading data and analytics company, offers his views;
“The COVID-19 crisis has brought an unprecedented and sudden loss of global vehicle sales. GlobalData’s base COVID-19 light vehicle sales scenario forecasts a fall of 17.6% on 2019 to 74 million.
“However, May’s market rise over year-ago levels in China is very welcome to the auto industry, both inside and outside China.
“This is the second consecutive monthly rise for the Chinese vehicle market, as it rebounds from sharp declines in the first quarter caused by the COVID-19 pandemic. China was first into the COVID-19 crisis and first out of it, so developments in China’s economy are being watched very closely.
“Hence, a return to growth in the world’s largest vehicle market will boost confidence in the auto industry.
“In our base forecast, measures to suppress COVID-19 allow for vehicle market recovery around the world from the third quarter of this year onwards.
“Therefore, China’s return to vehicle market growth is a portent of what should happen in other markets as the COVID-19 pandemic subsides later this year. The global public health crisis and its heavy impact on economies are far from over, but a return to vehicle market growth in China is a positive sign.”