China leverages COVID-19 – only major economy to recover from pandemic, auto sales surge

On Friday, China’s industry body stated, vehicles sales in the country is set to touch 25 million units in 2020. The development underscores the interesting phenomena in the world’s biggest vehicle market where the auto industry has recovered from the COVID-19 pandemic. It is noteworthy since the first reported signs of the outbreak which became pandemic emerged from Wuhan, China.

In an annual conference of the association in Beijing, Fu Bingfeng, executive vice chairman of the China Association of Automobile Manufacturers (CAAM), stated, Chinese auto sales in 2020 is expected to be more than 20 million passenger vehicles and 5 million commercial vehicles, including trucks and busses. In 2019, China sold 25.77 million vehicles.

According to Bai Hua, an official from China’s Ministry of Industry and Information Technology, more than 1.3 million new energy vehicles (NEV) are expected to be sold this year, up from 1.2 million units in the previous year. Incidentally, NEVs include plug-in petrol-electric hybrid, battery-powered electric, and hydrogen fuel-cell vehicles.

According to data from CAAM, auto sales in the country rose by 12.6% in November from the same month a year earlier to 2.77 million vehicles.

The sales of new energy vehicles (NEVs) have risen by 105% to 200,000 units.

U.S. electric vehicle leader Tesla Inc along with homegrown Nio Inc and Xpeng Inc are among the firms which are expanding their manufacturing base in China. The recovery of the auto industry should be seen in the backdrop of China being the only major economy which has reported low levels of COVID-19 infections. Efforts to trace the source of the coronavirus, which emerged from Wuhan, are being blocked by Beijing.



Categories: Creativity, Economy & Finance, Entrepreneurship, Geopolitics, HR & Organization, Regulations & Legal, Strategy, Sustainability

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