China car sales plunge 80% – virus blamed

Car sales in China fell 80% year-on-year in February as the coronavirus (Covid-19) impact was felt.

The virus has stopped consumers visiting dealerships, the China Passenger Car Association (CPCA) reports.

“Very few dealerships opened in the first weeks of February and they have had very little customer traffic,” the association notes.

Global vehicle manufacturers like Tesla have been investing in Chinese facilities, but worker shortages and lockdowns because of the virus mean some can’t produce vehicles at full capacity while many potential buyers are also staying away from dealerships.

The Caixin China Composite Output Index fell to 27.5 in February from 51.9 in January, one of the steepest declines recorded.

The Covid-19 outbreak has brought company closures and travel restrictions, helping halt China’s economy and causing repercussions globally.

China’s passenger vehicle sales were 4909 units in the first 16 days, down from 59,930 vehicles in the same period a year earlier, the CPCA figures show.

Overall vehicle sales are forecast to slide more than 10% in the first half of the year because of the coronavirus, and about 5% for all of 2020, provided the epidemic is contained before April, the China Association of Automobile Manufacturers (CAAM), has told Reuters

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Meanwhile, Uber says it will offer compensation to drivers and delivery people globally (considered contractors) diagnosed with Covid-19 or put in quarantine for up to 14 days. Those sort of measures are likely to extend to other ride-share and delivery firms in the US and beyond.