China is rapidly recovering from the coronavirus, the economy of the country is already running at full, individual industries show a sharp increase relative to pre-crisis levels. In particular, in may car sales in China grew by 7% to 1,674 million pieces (the dynamics is given relative to may 2019).
According to the China Association of automobile manufacturers (China Association of Automobile Manufacturers, CAAM), a positive result in this segment recorded for the first time since July of 2017.
Sales growth is associated with delayed consumption demand, which was formed during the period of quarantine for pandemic coronavirus. Stimulus for the market was also large discounts and promotions offered by car companies – they need to quickly sell overstocked warehouses.
In addition, the Chinese government encouraged banks to reduce interest rates on car loans and two-year extended subsidies for the purchase of electric cars (up to 2022-th).
For the first five months 2020 the automobile market of China fell by 27.4%, to 6,109 million. CAAM forecasts that in 2020, sales will fall by 15-25%.