China's car sales take the lead

    Affected by the increasingly spread of the pandemic, global auto sales have presented a bleak scene.

    Only China's market landscape is stand out here.

Facing pressure to repair the economic damage of the pandemic, the Chinese government has actively launched a powerful stimulus plan and proposed a dual-cycle economic stimulus policy at the national level to stimulate domestic consumption. The lockdowns may unleash car demand in the second half of the year, or until 2021.

 

    As 25 provinces have recently lowered their emergency response levels, eased travel restrictions, and reopened shopping malls. It can be speculated that after plunging 42% in the first quarter of 2020, car sales are expected to start to flatten before the end of June, and the growth rate in the second half of the year may be as high as 14%. Exceeding the 10% growth forecast from the China Passenger Transport Association, which assumed a 26% drop in sales of the first half year. We believe the full-year sales recovery should be strong enough to achieve our 2020 target of a 6% decline.