The Chinese car market will gradually recover and return to stable, despite the strong slowdown due to the outbreak of the coronavirus epidemic which registered a decrease in registrations of 40.8% in March alone.
To say it is the Automobile Association of the People’s Republic, according to which the overall volume of deliveries in April are already be much higher than in March, thanks also to the measures taken by the Government to accelerate the recovery and push a sector that represents Country 9.6 of total retail sales, plus a tenth of tax revenue.
The extension of subsidies
Among the various measures, the one decided in recent days to extend subsidies and tax exemptions for the purchase of green vehicles expiring at the end of 2020 by another two years. The Chinese Ministry of Industry has announced that a development plan for electric and hybrid cars with the aim of promoting the use of these and reaching 1.6 million units produced in 2020.
The government then announced a 0.5% reduction in value added tax on the sale of used vehicles and also the possibility of postponing the implementation of the new emission standards in some provinces.
“Due to multiple factors, auto sales in China have been falling for two consecutive years and with the Covid-19 epidemic, they have further plummeted. The government will also assist domestic automakers in strengthening production and in overseas supply procedures by ensuring rapid and regular customs clearance of parts and spares,” said Liu Changyu of the Commerce Department .
In the meantime, among the manufacturers operating in China, there are some who are wasting no time in recovery. We refer to Tesla which in March sold 10,160 vehicles for the first time in the country in a single month. The American manufacturer has already resumed production at the Shanghai plant, the only one outside the United States, and aims to produce 150,000 Model 3 sedans per year.