Coronavirus: China’s car manufacturers call for government help as sales post biggest monthly drop

Car sales in China plunged 79 per cent in February, the biggest ever monthly decline, as demand was hit by the coronavirus outbreak

Sales of new energy vehicles, which include battery-electric cars, contracted for an eighth month in a row

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February sales in the world’s biggest car market tumbled to 310,000 vehicles from a year earlier, falling for a 20th straight month. Photo: AFP

Published: 3:19pm, 12 Mar 2020Updated: 2:08pm, 16 Mar 2020

Car manufacturers in China are calling on the government to help after industry-wide sales plunged 79 per cent in February to mark their biggest ever monthly decline, with demand pummelled by the coronavirus outbreak.

Their wish list includes cuts to the purchase tax on smaller vehicles, measures to support sales in rural markets and an easing of car emission requirements, the China Association of Automobile Manufacturers (CAAM) said.

February sales in the world’s biggest car market tumbled to 310,000 vehicles from a year earlier, falling for a 20th straight month.

“China’s auto sales for February returned to levels not seen since 2005,” said Chen Shihua, a senior association official.

Measures like cuts to the purchase tax, support for rural markets and easing purchase restrictions on new energy vehicles are reasonable and would have an immediate impact

Yale Zhang

Sales of new energy vehicles, which include battery-electric cars, contracted for an eighth month in a row, also hurt by a rollback in government subsidies.

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