AutoBeta(AutoBeta.net)04/19 Report--

The epidemic has had a great impact on the automobile industry. Car sales have fallen to a historical freezing point, and the performance of car companies has seriously declined. Slimming plans seem to be imperative, and many car companies have taken measures to lay off staff or cut wages to deal with the crisis. For the trend of the car market after the epidemic, a number of independent car companies CEO expressed their views. Shen Hui, CEO of Weimar, believes that the "retaliatory" consumption of cars is not realistic, while Li Xiang, the ideal car CEO, says that the most important thing in this special period is to survive.

Weima Automobile is a Chinese independent new power car manufacturing enterprise established in October 2015. Shen Hui, founder and CEO of Weima Automobile, said on his personal Weibo on April 18 that "retaliatory" consumption of cars was unrealistic.

Shen Hui said that there are two views on the trend of the car market after the epidemic. One view is that the epidemic has made people accustomed to staying at home, the demand for cars has decreased, and the car market will continue to be frozen; another view is that people are more concerned about their health and are more willing to choose private cars when they travel. the car market may have a retaliatory rebound. However, with the outbreak of the global epidemic and the cut-off supply of imported core components, users may face the dilemma of having no cars to lift. In Shen Hui's view, there is some truth in both views.

Shen Hui believes that the epidemic has an obvious short-term impact on China's economy, and the "retaliatory" consumption of cars is not realistic. Shen Hui said, "after the epidemic, people's sense of saving has increased, and consumption has become more rational and pragmatic." Automobile as a bulk consumer goods, low frequency, high unit price, long decision-making chain, it is difficult to usher in the real sense of "retaliatory consumption" in the short term. Only when the economic chain is running and employment expectations are stabilized can we release more consumption potential and drive private car consumption.

With the epidemic under effective control, China's auto market has entered a slow recovery period. On the consumer side, in view of the impact of the epidemic on the car market in the cold winter, it is still in a depressed state.

According to data from the China Automobile Association, automobile production and sales completed 1.422 million and 1.43 million respectively in March, up 399.2% and 361.4% from the previous month, down 44.5% and 43.3% respectively from the same period last year. In the first quarter of this year, automobile production and sales completed 3.474 million and 3.672 million respectively, with production and sales down 45.2% and 42.4% respectively from the same period last year.

The China Automobile Association believes that there will be a greater recovery in China's automobile market in the second quarter, but it will be difficult to return to the level of the same period last year. Taking into account only domestic factors, with the successive introduction of various support and promotion policies, combined with the active efforts of enterprises in the automobile industry, the sales level of the automobile industry in the second half of the year is expected to recover or exceed the same period last year, but it will still be affected by uncertain factors in the progress of overseas epidemic prevention and control. At the same time, the outbreak of the epidemic overseas has also affected the overseas automobile consumer market, hindering the export of Chinese brands of cars and parts.

Li Xiang, founder of Automobile House, founder and CEO of ideal Automobile, said that the impact of the epidemic on the economy and consumption is far more than SARS can compare, and even far exceeded the financial crisis of 2008. "in this special period, especially entrepreneurs, do not underestimate the impact and destructive power of the epidemic," he said. You have to make a 200% effort before you have a chance to achieve the goals you set before. Either redouble your efforts, or lower your goals rationally, and it's far better to hit yourself in the face than to lose the company. The most important thing is to live! "

Weima Automobile and ideal Automobile are all part of China's new forces in building cars, and the epidemic has also affected sales. Weimar has launched two pure electric vehicles, the Weima EX5 and the EX6, with a total of 16876 delivered last year, ranking second among the new car-building forces. The ideal ONE launched by ideal Automobile adopts plug-in hybrid technology and delivers more than 4500 units in five months on the market.

Volkswagen, which has the largest volume of domestic car sales, has lowered its performance forecast for 2020. Feng Sihan, CEO of Volkswagen China, said in an interview that Volkswagen's Chinese factories had returned to production levels of 70 to 80 per cent before the outbreak. "We expect sales in the Chinese market to decline by 15 to 20 per cent this year".

Although the auto market 'retaliatory' consumption is difficult to appear, the industry is still optimistic about the future expectations. Wang Bin of the Ministry of Commerce said that China's automobile market has great room for development and potential, and the consumer demand for cars is still strong. The impact of the epidemic on the automobile industry is phased, with the control of the epidemic and the gradual recovery of production and life, the compensatory consumption demand of cars will increase significantly in the later stage.

The China Federation of passengers estimates that the decline in car sales is temporary, but the speed of recovery depends on local government measures. If the policy is strongly implemented and the comprehensive support policy for traditional cars is targeted, sales will increase from April to December at least after the epidemic is stable, and even bring back the positive growth of sales throughout the year.

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