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Epidemic pledge! China’s auto industry will go from here?

from here to win the winter, spring will return with you.

novel coronavirus pneumonia “surprise” Let Heinrich middot; Heine’s poem phrase has become almost a staff of Chicken Soup. However, for China’s auto industry in terms of employees, even chicken soup you’ll feel the winter chill Chinese auto market is still cold people tremble –

According to China Association of Automobile Manufacturers published in the latest issue of China’s auto market sales data show: in January 2020, China’s auto production and sales were 1.783 million and 1.941 million, the chain decreased by 33.5 percentage and 27 percentage over last year were down 24.6 percentage and 18 percentage.

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at this point China’s auto market has declined for 19 consecutive months of sales year on year, the cold data looked like in the automobile Association declared depth adjustment on the “2020 auto industry will end 2019, and in the next few years show a gradual recovery trend, “the forecast or to be a luxury.

[123 ] recognize the reality of such a feeling is like to face all the industry poured cold water – when the major car firms are ready to meet the difficulties of preparation, they often do not think the difficulties will come in this way. Of course, since the outbreak of the epidemic is beginning from 20 days in January, so for automobile sales in January limited impact, but for the auto market in February, 2020 as well as the follow-up of the automotive market will have a greater impact, according to the Automobile Association reports, the epidemic on Effect industry mainly in the following five aspects (briefly described below):

(a) demand for cars and spending power in the short term significantly decreased

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to lift an order to prevent an epidemic worsened, consumers at home and more self-isolation, which greatly reduces the purchase behavior of consumers in the short term, seriously affecting the sales of motor vehicles, and this factor will continue to epidemic after the response, the impact will continue.

The epidemic For dining, film and television industry, “spread” will also affect income-related employees, thus affecting the redemption demand one to three tier cities, and the following four cities and rural towns such as the first demand for cars. In addition, since 2018, low-income groups are subject to multiple shocks, while not yet recovered, “vitality”, once again suffered the impact of the epidemic, which further weakened this part of consumer spending, thus affecting the car in the short term The overall consumer demand.

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(b) production and hinder the progress

affected by the epidemic across the country have issued a notification delay return to work in most regions also asked staff to return to work after the home was observed, further delayed the resumption of work rhythm, resulting in insufficient business productivity, impact of product manufacturing. In short, a huge impact on the epidemic car factory, supply chain.

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(c) the export difficulties increase

pneumonia epidemic novel coronavirus infection was listed as the World Health Organization emergency public “of international concern health events, “some countries and companies in order to prevent the spread of the epidemic refused to accept alreadyGoods ordered, to make the revocation of the original orders. In addition, because a number of countries on China’s implementation of immigration control measures, resulting in China’s auto enterprises to explore overseas markets hampered it more difficult for auto and auto parts exports. Car prices plus production hinder the progress of follow-up orders signed by enterprises also have a negative impact.

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(d) SME funding strand breaks increased risk

by the delayed impact of the return to work, shut down car prices, production and sales, income and cash flow disruption , plus the cost of rent, wages, interest and other payments still, this great test of company’s financial strength. In addition, business interruption could lead to breach of contract orders, increased cash flow difficulties, a small part of the body mass, weak anti-risk ability of small and medium enterprises (mainly in the main parts enterprises will face difficulties of bankruptcy.

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(v) enterprises to cope with standards and regulations of the difficulty greatly increased

by this epidemic for the production, negative impact on sales, car prices is difficult in the relevant standard (country six emission standards etc.) before the date of implementation of existing inventory digestion (products, components), while the testing organization, testing ground for the resumption of work time and again delayed, will also delay enterprise product certification cycle, and thus delay the time to market, with companies operating efficiency is not high, may eventually resulting in some companies can not sell new products as planned after the implementation of the standards.

sudden outbreak to life and automobile industry, the recovery of ordinary people are covered with a layer of haze, but often the opportunities and challenges, as long as there is sufficient market sensitive sense of smell Epidemic can become a “springboard” to help car firms were out of difficulties. So after talking epidemic challenges of the automotive industry, let’s talk about the epidemic give the automotive industry withTo those opportunities:

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(a) after the outbreak private car purchase will enhance the enthusiasm

There is no doubt that the epidemic in the short term affect car deal, but the long-term will be the release of rigid demand – infectious disease to some extent, allow consumers to subway, bus, car or even public transport network about generating fear, and thus indirectly stimulate demand for private cars , acceleration or consumers plan to purchase in advance.

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(b) the epidemic of car sales Midwest certain role

the epidemic will allow Midwest market by early strong real estate squeeze effect, and thus indirectly promote the growth of demand for cars, which have a certain role in promoting car sales in the region. In addition, SUV product is the household consumption of main models, but also the ability to adapt to a strong road vehicle of choice for the Midwest, sales of SUV’s epidemic will have some promote.

(c) will drive the epidemic car prices online marketing transformation

virus raging, 4S shop for consumers to look at cars, maintenance is somewhat difficult one, which means that car companies who want to maintain a more optimistic sales must accelerate the car to see live, online to see cars and other online marketing transformation, which will allow the car online marketing model enterprises have developed rapidly during the epidemic.

(iv) the epidemic will promote disinfection and filtration equipment automotive-related sales

contact the masks, hand sanitizer, disinfectant and other daily necessities, “out of stock”, outbreak, PM2.5 and other automotive sales for the disinfection and filtration equipment are there will be a great promotion.

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summary

Indeed, the novel coronavirus outbreak of pneumonia for China’s auto industry, and the whole Chinese economy and society have caused incalculable losses, but from an objective point of view, it will drive demand for private cars, car prices online marketing to a certain extent, Everything has two sides, challenges tend to be with opportunities.

Besides the difficulties often only temporary, after the haze will usher in positive economic, environmental and other aspects. Like Feng said, “the world of things, as long as life is immortal, even natural disasters was heavy, temporarily repression, but eventually the rise of day,” the day is getting closer, is not it?

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