The China Automobile Federation has stated that retail sales in the country tumbled 92% year-on-year in the first 16 days of February, as the spread of the Corona virus severely restricts corporate activities across the country.

Union data showed that passenger car sales in China recorded 4909 units in the first 16 days, down from 59 thousand and 930 cars in the same period a year ago, in the first big figures showing how powerful the epidemic had a negative impact on the world's largest auto market.

The Federation said: "A very limited number of agents opened their doors in the first weeks of February, and they had a very limited movement of customers."

The Chinese mainland reported 889 confirmed new cases of Corona virus infection the day before yesterday. The death rate also rose by 118 to 2236, most of them in Wuhan, the capital of Hubei province, where the outbreak began, and remains subject to isolation.

The China Automobile Manufacturers Association, the country's largest industry association, indicated last week that the Chinese auto market is likely to see a decline of more than 10% in the first half of the year due to the Corona virus, and about 5% for the whole year, provided that Contain the epidemic effectively before next April.

With the aim of stabilizing the market in which 25 million cars were sold last year, the Chinese Ministry of Commerce said it will introduce more measures to support auto consumption.

In addition, the Chinese Ministry of Commerce said yesterday that the country's exports and imports will be affected negatively by the spread of the Corona virus, which caused severe disruption in the second largest economy in the world.

Ministry officials stressed, during a press briefing, that China expects foreign companies in most regions to resume production by the end of February, but they added that there will be a more visible impact on foreign direct investment to China in February and March.

In a related context, the Chinese Ministry of Finance said that it will begin exempting 65 American commodities from punitive customs duties applied in the midst of a bilateral trade dispute with the United States, for a period of one year, starting on February 28. Goods exempt from additional fees include aircraft components and medical equipment, according to documents posted on the ministry's website.

4909

Units of passenger car sales volume in China in the first 16 days of February.