As the world’s largest car market, the reopening of most Chinese car dealerships is a good sign for the global car industry.
According to a major trading organization, nearly 91% of new car dealerships in China have reopened, despite the ongoing COVID-19 epidemic. This has kept the customer flow of showrooms at 53% compared to normal.
According to China Automobile Dealers Association (CADA), which monitors 8,393 brand dealers all over China, the number of people coming to the showroom also varies greatly between different brands.
More specifically, dealers that specialize in Chinese brands have reported the lowest customer flow of showrooms at 35% of what is considered normal for this time of year, according to Autonews Europe. Meanwhile, the dealers selling foreign cars domestically produced witnessed the number increased to 54% compared to normal.
At the same time, 9.2% of brand agents have remained closed because they do not receive the permission of the local government, requiring businesses to provide effective protective equipment to both employees and customers.
Passenger car retail sales was down 47% in China in the first half of March, because the epidemic halted most business and consumer operations all over the country.
“Some cities are stimulating people to return to normal life, but consumers’ confidence in buying cars will not be able to return to normal before the end of March,” a representative of China Passenger Car Association said.
The rest of the world continues to be in the struggle against epidemic and is not as aggressive as China, which is why business is only beginning to close in the countries of European Union. This means that the automotive industry is far from full recover on a global scale.