cens logo

Auto Market Was Hit Hard by Epidemic

Mar 19, 2020 | By CENS

The China Automobile Dealers Association revealed on the 17th that in the first quarter of 2020, under the influence of the new crown pneumonia epidemic, the automobile market in mainland China continued to slump. In addition to terminal demand, it also affects the entire automotive industry chain. The vacancy rate of upstream component and vehicle manufacturers' production capacity is high, costs have risen, and financial pressure has risen sharply. Passenger flow in the showroom of downstream dealers recovered slowly, and new orders fell by over 80% year-on-year.

news-photoAuto Market Wasn`t Expected to recover until May.
China News Agency reported that as the epidemic situation in mainland China slowed down, the mainland auto market showed signs of recovery, but the overall recovery rate remains to be seen. Affected by the epidemic, manufacturers are more cautious in formulating sales strategies. According to dealer surveys, manufacturers' targets in March fell 38% year-on-year. In early March, the distributor's comprehensive return rate is about 50%, and it is expected that the comprehensive return rate will reach 70% by the end of the month.

The survey showed that the dealers had about 3 million inventories at the end of February, which was basically the same as that in January. The dealers replenished their inventory in March also faced tremendous pressure. Although the government plans to introduce a stimulus policy for the auto market, the actual landing is expected to take effect in the second quarter; public travel is gradually recovering, but consumer confidence in car purchases is unlikely to return to normal by the end of March.

The Association predicts that the decline in the automobile market in March will be better than that in February, and the automobile market is still hovering at a low level. It is expected that it will gradually pick up after April-May. The industry expects that after the epidemic, the auto market will regain its vitality.

Cui Dongshu, secretary general of the Passenger Car Market Information Joint Committee, said on the 17th that the automotive industry is now in a deep downturn, and policy support is needed to promote auto market consumption.

Cui Dongshu said that the impact of the epidemic on both the supply side and the consumer side of the automotive market is extremely large. The operating costs of enterprises have increased and the pressure on capital turnover has increased. Cui Dongshu pointed out, "If there is no strong stimulus policy at the national level, the current car retail sales are expected to be 19 million units in 2020, a decline of 8% year-on-year, and a 9% reduction from the forecast of 1% increase in 2020 at the end of 2019."

Cui Dongshu believes that most of the key measures now are to promote the demand for auto redemption, and the next step should be the first purchase.

In mainland China, the policy of reducing vehicle purchase tax by half was introduced in 2009 and 2015, and achieved good results. He predicts that if the purchase tax halving policy is implemented in 2020, it may drive sales growth of 2.59 million units, and the overall consumption tax and value-added tax will reach 60 billion yuan. In addition, he believes that comprehensive measures such as increasing car license plate quotas, implementing subsidies for mini electric vehicles to the countryside, and tax credits for car purchases should be considered in cities with restricted purchases.


Industry Reports

Taiwan Automaker's Chain-Breaking Crisis Temporarily Suspended</h2>

Taiwan Automaker's Chain-Breaking Crisis Temporarily Suspended

Mar 17, 2020

The car supply chain disconnection problem affected by the new crown pneumonia epidemic has gradually eased. After Yuri Automobile sought supply from Japan and Mexico, the original outage crisis that was expected in the middle of this month is expected to be resolved, and Guorui Automobile is expected to continue normal supply by the end of the month In the short term, Taiwan's auto supply will n...


Seeing High Demands in Mini LED</h2>

Seeing High Demands in Mini LED

Mar 17, 2020

Mini LED is regarded as a new generation of technology. Last year, Mini LED-based terminal products were successively unveiled. This year, Apple's new products introduced Mini LED. The industry revealed that other major customers have also actively promoted the duration of Mini LED applications and have not been affected by the new crown pneumonia influences. According to industry analysis, in...


Future Outlook on Automotive Electronic with Rising Opportunity for Taiwan</h2>

Future Outlook on Automotive Electronic with Rising Opportunity for Taiwan

Mar 16, 2020

The Scale of Global Automotive Electronics The global automotive electronics market size reached US$ 267.6 billion in 2018 and is expected to hit US$ 355 billion by 2023, with a CAGR of 5.6%, according to Strategy Analytics. The current output value is mainly driven by driving information systems, connected cars, and autonomous driving assistance systems (ADAS). The Status of Taiwan’s ICT i...



Industry In-Focus

Three Models of Taiwanese Businessmen Entering the Mainland Electric Vehicle Supply Three models of Taiwanese businessmen entering the mainland electric vehicle supply Chain</h2>

Three Models of Taiwanese Businessmen Entering the Mainland Electric Vehicle Supply Three models of Taiwanese businessmen entering the mainland electric vehicle supply Chain

Feb 04, 2020

China is the world's largest producer and seller of electric vehicles. In 2020, electric vehicle sales will look at 2 million units, driving the rapid growth of industries such as batteries, connected cars, autonomous driving and charging equipment. Although the Chinese electric vehicle market is dominated by domestic production and domestic sales, due to the current lack of technology and R & D ...


Machinery tool booming in 2020</h2>

Machinery tool booming in 2020

Jan 21, 2020

he Taiwan Machine Tool & Parts Association held a joint meeting of supervisors and supervisors . The meeting was optimistic about the outlook for the machine tool and component industry next year. The joint board of supervisors and supervisors was chaired by Chairman Xu Wenxian. Industry representatives at the meeting believed that the global supply chain migration in 2020 was roughly finalize...


Taiwan Machinery Grab Biz Opportunity in India</h2>

Taiwan Machinery Grab Biz Opportunity in India

Jan 15, 2020

Organized by the Indian Machine Tool Association, the 2020 Indian International Metal Forming Machinery Exhibition (IMTEX FORMING) is the most influential metal forming machinery exhibition in Southeast Asia. The exhibition period is from January 23 to 28, and it will be held at the Bangalore International Convention and Exhibition Center in India. Out. In 2018, India was the fourth largest ex...



Supplier News

Power & Hard Industry Co., LTD.</h2><p class='subtitle'>crimping tools, steel-wire cutters, cable cutters, steel-rope cutters</p>

Power & Hard Industry Co., LTD.

crimping tools, steel-wire cutters, cable cutters, steel-rope cutters

Feb 05, 2020

Power & Hard Industry Co., Ltd. specializes in designing and producing professional pliers. Having been in the industry for over 20 years and rolling out their own brand called “Flying Fish,” the firm has largely concentrated on producing high-quality hand tools and various pliers as a professional manufacturer. Power & Hard Industry’s newly announced 17” Steel Wire & Cable Cutter has especially ...

POWER & HARD INDUSTRY CO., LTD.


Londa's LED Increased with More Automotive Lighting Market </h2>

Londa's LED Increased with More Automotive Lighting Market

Jan 16, 2020

In 2018, European and American international car manufacturers have automatically turned on the daytime running light function in new-style cars to reduce the accident rate. However, the trend of LED lights has become a major trend. In addition, active steering in advanced driver assistance systems (ADAS) Both headlights (AFS) and auto-adjustable headlight systems (ADB) have introduced LEDs one a...


A-Tina Co., Ltd.</h2><p class='subtitle'>Home Pair Tool, Power Tool Accessories, Household Tool Kit</p>

A-Tina Co., Ltd.

Home Pair Tool, Power Tool Accessories, Household Tool Kit

Jan 10, 2020

Founded in 1975 in Taichung, A-Tina Co., Ltd. is an industry leader in hand tools. With around 45 years of manufacturing experience, it can provide customization in accordance to client requirements. The company offers various tool cases in materials such as hollow molding in plastic, aluminum, iron, and nylon. and a wide variety of tool kits for different project purposes, including auto repair,...

A-TINA TOOLS COMPANY LTD.



Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...


Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...

PAUL MASTER AUTO PARTS CO.


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Sep 04, 2019

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...



Exhibition Highlights

ITES 2020: COVID-19 Manufacturing Exhibition Crisis Response</h2>

ITES 2020: COVID-19 Manufacturing Exhibition Crisis Response

Feb 25, 2020

Since increasingly severe COVID-19 epidemic spread out in past 30 days, China economy has been dampened. Greater global connectivity and supply chain dependency on China and reliance on Chinese consumption currently, without a doubt, COVID-19 triggers a greater economic fragility. Emergent Production Adjustment As the fight against the novel coronavirus outbreak intensifies, Chinese local a...


AUTOMECHANIKA 2019

Auto aftermarket experts to analyse prospects at Automechanika Dubai with ME market to reach US$18.5 bn by 2023

Feb 17, 2020

Growth indicators in the automotive industry will drive opportunities in aftermarket sales Dubai, UAE: The automotive aftermarket’s business prospects have been underlined by a valuation forecast of US$18.5 billion by 2023, and suppliers and manufacturers are now looking to Automechanika Dubai, the largest international trade show for the automotive aftermarket and service industry in the MEA ...


Fastener Expo Shanghai 2020</h2>

Fastener Expo Shanghai 2020

Feb 13, 2020

Opening Time: 3-5 June, 2020 Venue: National Exhibition and Convention Center (Shanghai) Organisers: Shanghai ITE Ebseek Exhibition Co., Ltd. Fastener Expo Shanghai 2020, has been deeply rooted in the industry for 11 years, and has always been developing and expanding with the purpose of being professional, efficient, open and innovative. It can be called the benchmark event in the gl...