COVID-19 decelerates China's auto sales

Government subsidies of $280 to $420 provide limited support to the industry.

Increasing headwinds from the coronavirus outbreak can prolong and worsen the impact on China’s vehicle sales, leading to an 18.4% contraction in 2020, according to a Fitch Solutions report.

The report added that there have been delays in vehicle purchasing as households and companies prioritise making improvements on cash reserves and reducing debts.
As consumer spending and business investment takes longer to recover from the outbreak, the car market is expected to see just 21.02 million units sold by year-end. China’s GDP growth outlook in 2020 also dipped by 1 percentage point (ppt) to 4.2%, down from a 5.2% growth.

Fitch also highlights that whilst the Chinese government has announced its intention to support the vehicle market, this will be limited in scope and will fall short. Cities in the Hunan and Guangdong provinces announced relatively low cash subsidies for locally built vehicles ranging from $280 to $420. The government continues to focus on other sectors such as infrastructure, SMEs, and the rest of the industrial sectors.

However, the report noted that vehicle sales would likely bounce back in 2021 as consumers and businesses struggle financially in the aftermath of the outbreak. The risk of a second outbreak will also keep consumers from spending on non-essential goods.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Jalan Tembusu, meanwhile, saw a strong performance due to the opportunity present in the area.
Users can now link accounts from Bank of China, DBS, Maybank, OCBC, StanChart, and UOB.
The new deal also extends SIAEC’s existing on-wing care services with Rolls-Royce.
Prime office rents rose 1.5% QoQ in the fourth quarter of 2021.
Completion of the acquisitions is expected to take place from H2 2022 to Q1 2024.
The Jalan Tembusu site hit a new record land rate of $1,302 psf ppr.
'Long COVID' is experienced by people who have symptoms that drag for a month.
This is according to interest rate forecasts from OCBC. 
Seven in 10 Singaporeans are looking to switch jobs in 2022.
DairyFarm had the most growth.
A continued expansion of the VTL program strengthened this performance. 
The resumption of data centre development came with new conditions.
The digital platform will use the fund to strengthen haulage capacities.
This is part of its continued support for the vaccination and booster drive.