China has witnessed an increase in auto sales in April and May 2020, which has led to China Association of Automobile Manufacturers (CAAM) revise its projection about the country’s sales figures for 2020.

 

CAAM,  the industry body in Auto sector in China, said sales are now likely to fall short by 10-20pc in 2020 over the previous year.

Previously, CAAM had projected that with COVID-19 outbreak disrupting supply chains, productions and end user demand, total annul auto sales could fall by 15pc to 25pc from 2019’s performance.

 

In April, China’s auto sales hit 2.07mn units, up by 4.4pc from a year earlier — the first monthly sales growth in almost two years. The association had expected January to May auto sales in China to fall 23.1pc from the prior year to 7.9mn units.

The country had sold more than 25 million units in 2019.

 

The demand from downstream steel industries, infrastructure and construction sectors has recovered up to large extent after the government gave economic stimulus to the industrial activities.  

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