China production and sales fall in January 2020: Impacted by coronavirus and Lunar New Year holiday
NEVs sales down by half to 44k units, government policy boosts car consumption
New vehicle sales in China for the full calendar year 2019 were down 8.2% y/y (year-over-year), to 25.769 million units (based on factory shipments and including exports), continuing the y/y decline from 2018. According to an announcement by the Chinese Ministry of Industry and Information Technology (MIIT), production of motor vehicles in January 2020 declined 24.6% y/y to 1.783 million units, and sales in the same period fell 18.0% y/y to 1.941 million units. From the end of January, the suspension of operations at automotive-related companies was prolonged due to the Lunar New Year’s holiday and the effects of the novel coronavirus-infected pneumonia (NCIP), with both production and sales volumes falling sharply.
Dongfeng Motor Group Co., Ltd. (Dongfeng Motor Group) will resume operations from March 11 at its facilities in Hubei Province where its headquarters is located and many automotive-related companies are concentrated, and as of February 26, the plants of its foreign-equity joint ventures including Dongfeng Nissan, Dongfeng Honda, and Dongfeng PSA have been shut down. Under these circumstances, on February 25, the MIIT has announced a policy to boost the resumption of operations in the manufacturing and telecommunications industries.