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Friday, May 08, 2020

By CarKhabri Team

Is Chinese Auto Market Improving Post COVID-19 Pandemic?

Is Chinese Auto Market Improving Post COVID-19 Pandemic?

With all countries in the entire world still struggling with an increasing number of people infected with the coronavirus pandemic, news from China coming out from its effects has bought a sigh of relief among various countries. But, is this really true, because the country which till a few months recording a huge loss of life cannot immediately recover from such an epidemic. Besides this, the fact which creates suspiciousness towards China from instant recovery is the data provided by the China Association of Automobile Manufacturers (CAAM), according to which 2 million vehicles were sold during April throughout the country. Moreover, it is for the first time in recent years, when the auto industry has sold this many vehicles during a particular month.
Moreover, the statistics revealed by the Chinese Communist Party has made the information more suspicious. On the other side, all the countries throughout the world believe that the government in China, which is blamed for the spread of Coronavirus wants to divert the attention of the entire world from the number of deaths caused due to this pandemic. One more reason to disagree with the statistics revealed by CAAM is the liability of all the people to tie-up with China’s only political party.
Moving ahead, as China is regarded as the place of COVID-19’s origin, it was believed that its market will take more time to recover than other countries. It seems that as soon as the orders of reopening the businesses and removing of the lockdown were announced the people moved to the dealerships for filling the loss due to the existing conditions. What is more surprising is to mimic behavior adopted by some of the manufacturers like Volkswagen. According to Stephan Wollenstein, the businesses in entire China are improving rapidly. In his words, “We are witnessing an outstanding economic comeback. In late winter, the whole of China was effectively in lockdown. Now, by early summer, we can look forward to a return to normal in the country’s car market. In April, Volkswagen Group China’s deliveries were even able to grow compared to the previous year.
This comeback was made possible by a joint effort from customers, government, and the automotive industry. We have left the deepest valleys behind us, and are now on the climb to the peaks again. After a total market downturn of 80 [percent] in February, 40 [percent] in March, and an April around 10 [percent] down, we are returning to normality. However, the big question is if the second half of the year will make up the dent of loss in the first half. Should the current trend continue, we at Volkswagen Group China can be cautiously optimistic and forecast a yearly result that is not so far away from our original plan. Looking back at the beginning of the year, this might seem like a miracle, but it was made possible by an incredible team effort.”
Anyhow all this seems to be not less than a miracle, and if this is a reality then it encouraging factor for all the countries.  In case, if CAMM is presenting the fake data of its sales, it is unlikely that it can do it alone without bringing this is in the notice of anyone. Although, the condition of the auto market is improving in China, overcoming the sales figures of last year sounds something unrealistic, especially when the whole country has not yet fully recovered from the threat of coronavirus and still facing attacks from various countries on political grounds regularly. Well, let us keep an eye on the whole scenario and wait for the edited figures.

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