AutoBeta(AutoBeta.net)03/04 Report--

Since the end of January this year, China has been affected by the outbreak of new coronavirus pneumonia, and the entire automobile industry has been "shut down" for dozens of days, causing countless losses to the domestic automobile market and domestic manufacturing industry. In order to realize the enterprise resumption in an orderly manner, under the promotion of the government, the resumption rate of the main production bases of 16 vehicle groups in China has reached 80%.

It is difficult to resume work in automobile enterprises and factories

Affected by the epidemic, the General Office of the State Council issued a notice on January 27 extending the Spring Festival holiday in 2020 to February 2. As the epidemic intensifies, holiday plans in provinces and cities continue to be extended. Due to the different degree of impact of the epidemic situation, the resumption progress of automobile enterprises in different places is also different. The automobile enterprises in non-Hubei Province resume production for six times, so that some automobile enterprises resume work in batches on February 10 and 17.

Due to the limited conditions for resumption of work, although many automobile enterprises have resumed work, the positions involved are mostly concentrated in sales, public relations and administrative functions. Therefore, the enterprise's so-called resumption of work is not completely equivalent to resumption of production. Because the actual factory resumption still needs to go through more administrative procedures to obtain approval from local governments. In addition, the production capacity of the factories that have resumed work has not been fully restored, mostly for single-shift production, which was mostly three-shift production under normal circumstances before.

Even if the whole vehicle enterprise resumes work, it is meaningless for the upstream parts industry not to resume work. As a result, Mercedes-Benz's "one day shutdown, loss of 400 million" documents were exposed. At the beginning of February, Beijing Benz's application letter imploring the government of Tianjin City Wuqing District to approve the resumption of work was widely circulated online. Beijing Mercedes-Benz said it currently had only one day of safety inventory and that every day the factory shut down would result in a loss of 400 million yuan, so it asked the Wuqing District government to approve 19 parts companies to resume work on February 10.

and orderly promote the resumption of production

Due to the delayed resumption of work due to the epidemic situation in various parts of China, there are many enterprises related to automobile enterprises with long supply chain, including not only vehicle production enterprises, but also suppliers providing parts and sales services, so they suffer greater impact, and these automobile enterprises have also become the objects that the government needs to focus on supporting.

Tesla became one of the first car companies to resume work with the help of the Shanghai government as the momentum of the new crown pneumonia epidemic gradually weakened. In order to resume work in an orderly manner during the anti-epidemic period, Xu Wei, director of the Information Office of Shanghai City Government and spokesman of the municipal government, revealed that Tesla Shanghai factory located in Shanghai Free Trade Pilot Zone will resume production on February 10. Xu Wei said that the municipal government will make every effort to coordinate and help enterprises put into production as soon as possible for the difficulty of returning to work of key production enterprises in this city.

In fact, Geely Automobile officially resumed production on February 10, but some production bases failed to fully resume production because the resumption sites of some production bases had not yet reached the resumption time. On February 13, Geely, like Mercedes, sent a letter of help to the Ningbo City government.

After the government of Ningbo City received Geely's letter for help, several departments held emergency coordination meetings to help Geely resume production orderly. As of February 29, CCTV "News Broadcast" broadcast Geely's practice of solving the problem of resumption of production at Spring Dawn Base of Automobile. Geely's 156 suppliers in Ningbo have fully resumed work, and the production capacity has recovered by more than 85%. The new cars produced after the festival began to be delivered to customers.

According to the latest news from the Ministry of Industry and Information Technology, as of 24:00 on March 3, the operating rate of the main production bases of 16 key vehicle groups has reached 84.1%, and the employee return rate has reached 66.5%. In addition to key epidemic areas, automobile industry enterprises have basically resumed production.

Record low May recovery

Due to the suspension of production for dozens of days or more than half a month in February, the whole automobile market fell into the environment of "difficult to sell cars and more difficult to deliver cars", and the automobile market repeatedly set the most "miserable" record. According to the latest auto sales data previously released by the China Passenger Association, retail sales of domestic passenger car manufacturers fell 80% year-on-year in February 2020 due to pneumonia caused by new coronavirus infection, a record decline. As well as China Automobile Circulation Association released China's automobile dealer inventory report in February 2020, the data shows that the dealer inventory warning index in February hit a five-year high, reaching 81.2%. Such data undoubtedly shows that the country was originally in a depressed market environment, once again suffered a serious impact.

However, in order to promote the rapid recovery of the automobile market, many policies have been introduced to stimulate automobile consumption, including Guangdong, Hunan and other regions. According to a survey conducted by the China Automobile Circulation Association, more than half of the dealers thought that their business conditions were "bad" in February, reaching 51.6%. But most dealers think it's likely to return to normal in May."

As an important pillar industry of national economy, automobile industry is also a landmark industry reflecting national competitiveness. Therefore, with the gradual weakening of the epidemic momentum of new crown pneumonia in China, it is inevitable for the government to speed up the recovery of automobile industry orderly.

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