S&P expects a slowdown in car sales in China in 2020

vehicle Sales in China in 2020 could rise by at least 1-2%, as predicted earlier, the international rating Agency S&P.

In the S&P is associated with the negative impact of coronavirus on the automotive sector of China, the Agency said in its report.

As stated by the analyst of the Agency, the outbreak that caused the temporary closure of some cities and number of factories in China, apparently, will be the reason that sales of cars in China in 2020 will fall below the previous scenario of the Agency at the level of 1-2%.

However, it noted that it is “too early to give a full quantitative assessment”.

“According to our estimates, a two-week break in production in the Chinese province of Hubei will reduce annual production by 2-4% in the region, where about 9% of the total production of cars in China,” — said the expert.

car Production in China recently moved to recovery, and it happened in November 2019, while the earlier decline was noted within 2 years.

“Although the Chinese market remains a long-term attraction for most world manufacturers of cars and components, recent events can make the year 2020 even more challenging for the global automotive players than originally expected,” — said the expert.

the Agency stressed that the German company Volkswagen seriously depends on the production in China because in this country the company has 23 production sites, the production of which is about 40% of the consolidated total volume of production of the VW.