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What is the impact of the epidemic on China’s auto parts industry?

China is the world’s largest automobile country, and this epidemic has made the development of China’s automobile industry even worse. Under the influence of the epidemic, the production, sales, and export of automobiles have been severely affected, and even threatened the global automotive supply chain.

 

The impact of the epidemic on China’s auto industry

 

Production fell sharply in January, but a more serious impact appeared in February. Although part of the reason for the decline in automobile production in January 2020 is due to seasonal factors, and the reduction in business hours during the Spring Festival holiday has led to a decline in automobile production, the impact of the new crown epidemic on the automobile industry has initially appeared in January, whether it is the overall situation of the automobile market or the automobile The year-on-year decline in the production of parts and components has increased.

 

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The resumption of work by auto companies has been delayed, and auto production has been suppressed in the short term. Affected by the epidemic, more than 60 automobile production plants across the country have postponed the resumption of work. According to a Mark lines survey, 22 factories in five provinces that have been affected by the epidemic have delayed resumption of work, with a total production capacity of 6.654 million vehicles per year.

 

Insufficient supply of parts and components has exacerbated production difficulties for auto companies. Hubei Province is the most important production base of China’s auto parts. To effectively control the development of the epidemic, Wuhan has been closed since late January. Since then, many areas with more severe epidemics in Hubei Province have also been closed down, bringing vehicles across the country. Difficulty in supplying parts. Other provinces and cities have adopted different levels of traffic control measures according to the development of the epidemic, which also brought great obstacles to the transportation of domestic auto parts and aggravated the production difficulties of auto companies.

 

The suppressed demand for cars may be released after the epidemic.

 

Automobile consumption belongs to the consumption of durable goods. The demand temporarily suppressed by the epidemic will not disappear forever. Demand will be released again after the epidemic is over. Therefore, the short-term sharp decline in sales is temporary and has little impact on the annual sales trend. . However, the negative impact of the epidemic on the country and the global economy as a whole may affect the overall development of the automobile market.

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Under the epidemic situation, ZODI also made a small contribution in the general environment to help medical staff and regions in need of protective materials. To use an old Chinese saying: Everyone gathers firewood and the flames are high. This is the strength of China’s unity. Let us weather the epidemic together. Only when the country is prosperous can the auto parts industry be more promising. Not only China, but the world should be the case.

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Post time: Apr-27-2021

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