The story appears on

Page A8

March 17, 2020

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business » Auto

Lack of demand for autos

Lack of consumer demand is likely to be the biggest managerial challenge for the automobile industry amid the coronavirus pandemic, according to a recent report from Bain & Company.

The report noted that automakers are taking priority actions, including systematically improving operational efficiency, redefining pricing strategy and mastering online sales.

Bain said pent-up demand will likely support sales in the second and third quarters of this year. Like the period following SARS in 2003, some consumers are likely to buy a car for the first time to avoid public transit and its perceived health risks.

The mid to high-end segment of the auto market will likely stabilize first. Demand for less expensive vehicles is likely to rebound more slowly, according to the report.

Bain said if there is no resurgence of the pandemic, production capacity should be back to normal within the first quarter of 2020.

The report also noted that inventory already within sales networks should cover 30 to 45 days of regular sales.

The coronavirus could drag Chinese passenger vehicle sales at least 5 percent below pre-crisis expectations in the mildest scenario; or 10 percent if there is a heavy impact and 23 percent in the worst case.




 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend