China's auto sales fall in April but loss narrows

China's auto sales declined again in April but losses narrowed in a sign the industry's biggest global market is recovering from the coronavirus pandemic as Beijing eases anti-disease controls, according to an industry group.

Sales of SUVs, sedans and minivans were down 2.6 per cent from a year earlier at 1.5 million, an improvement over March's 48.4 per cent contraction, the China Association of Automobile Manufacturers reported.

"The auto market has obvious signs of recovery," the group said in a statement.

It said sales of other vehicle categories were lower.

Sales plunged 81.7 per cent in February, hammering global automakers that look to China to drive revenue growth, after dealerships and other businesses were shut down to fight the try to stop the virus's spread.

The ruling Communist Party started reopening factories, restaurants and stores in March after declaring victory over the outbreak.

But consumers who are uneasy about job losses or a resurgence of the virus are reluctant to make big purchases. For the first four months of the year, passenger vehicle sales were down 35.3 per cent from a year earlier at 4.4 million, according to CAAM.

Demand already was weak due to consumer jitters about a tariff war with Washington and slower economic growth.

Sales fell 9.6 per cent last year, their second straight annual decline.

 

Asianet.in/ Desk: Asianet Online