China's 2020 auto sales fall for third year amid coronavirus
BEIJING (AP) — China has selling its SUVs and minivans for a third year in 2020 because the coronavirus is already affecting poor demand in the industry's leading global market.
According to the China Association of Car Manufacturers, sales decreased 6 percent from 2019 to 20.2 million.
Commercial vehicle sales grew to 5.1 million by 18.7 percent.
In December, revenue grew 7.2% year-on-year to 2.4 million, down from 11.6% growth in November.
Truck and bus sales rose 2.4% to 456,000.
Before the coronavirus struck, consumer unrest was affected by potential lack of jobs as a result of a slower economy and the tariff war with the United States in Peking.
The slowdown hits multinational producers who are trying to drive sales in the United States, Europe and Japan, at a time of flat production and falling demand.
It squeezes cash flow for global and Chinese car manufactures, who expend millions of dollars producing electric cars under demand from the government to fulfill sales targets.
Distributors and factories were closed in February in order to contain the epidemic of coronavirus that started in China's southwest in late 2019.
Since the ruling Communist Party laid the epidemic under control in the following month and allowed companies to restart, the automotive industry was among the first to reborn.
The full- year results showed a 7.6 percent decline in revenue over the January-November period relative to the previous year.
According to CAAM, the sales of electric and gasoline-electric hybrid cars increased by 10.9 percent in 2020 from a year ago to 1.4 million.
Sales improved 49.5 percent from 248,000 a year earlier in December.
China Car Manufacturing Association: www.caam.org.cn