Chinese car market stabilized in April after coronavirus pandemic

According to the results of April, sales of passenger cars in China decreased by 2.6% and reached 1 million 536 thousand units. According to the results of four months of 2020, Chinese car market fell by 35.3% to 4 million 433 thousand cars. According to the Chinese Association of Automobile Manufacturers (CAAM), stabilization of the car market in April was facilitated by the weakening of quarantine measures to prevent the spread of coronavirus, as well as pent-up consumer demand, which had formed in the previous few months.

In addition, the PRC government recommended that banks reduce interest rates on car loans, extend subsidies for the purchase of electric cars for two years (until 2022), and various subsidizing programs for buying new cars were launched in the regions so that people would use less public transport. According to CAAM's forecast, car sales in China will decrease by 15-25% depending on how quickly the spread of coronavirus infection abroad is controlled.