China’s car sales had the biggest monthly plunge on record as the coronavirus kept shoppers away, intensifying the pressure on automakers already battling an unprecedented slump before the outbreak. Sales fell 80% in February, according to preliminary numbers from the China Passenger Car Association released Wednesday. Average daily sales improved toward the end of the month compared with the first three weeks, PCA said.
The outbreak has paralyzed the industry just as it was looking to gradually halt a two-year decline, with manufacturers now left with little visibility into when sales might recover. Automakers have poured billions of dollars into the world’s largest car market over the past decades in a bet on its growth potential.
Everyone from market leader Volkswagen AG and electric-car maker Tesla Inc. to smaller local contenders have been pummeled as the spreading Covid-19 outbreak hit both demand and production. Wholesales from carmakers to dealerships probably plunged 86% in February, PCA said.
Millions of companies in China are in peril as consumers stay home and output at factories remains disrupted. Activity in the country’s manufacturing sector contracted sharply in February, with the official gauge plunging to the lowest level on record.