Car market in China collapses
Concerns about the effects of the corona virus are exacerbating the already weakening auto market in China. In January, the manufacturers delivered 1.61 million vehicles to the car dealers a good fifth less than in the previous year , as the manufacturer's association CAAM (China Association of Automobile Manufacturers) announced in Beijing on Thursday. That was the biggest slump since the beginning of 2012. Buyers increasingly avoided car dealerships in the face of the epidemic. The CAAM estimates that the outbreak of the corona virus could cut car production by a million vehicles this year . Around 21 million cars were sold in China in 2019.
The world's largest car market has been stalling for around a year and a half. The trigger was the trade dispute between the United States and China, now the uncertainty about customs duties and the Chinese economy are adding to the problems. The sharpest decline was in January in sales of electric cars. These are sold primarily in the large cities of the country particularly affected by the virus.
China is the most important single market for Mercedes-Benz, Audi, BMW, Volkswagen and Porsche.So far, the German manufacturers have been doing well due to the industry downturn. The premium suppliers Daimler and BMW in particular were largely able to avoid the weakness because their buyers' concerns about further economic development did not play as great a role as those of the mass manufacturers
