China will become an important cornerstone for the future development of the global auto industry

In recent years, Chinese auto parts companies have continued to grow and develop in the international market. At present, almost all the world-renowned auto parts giants have established their presence in China as one of the production centers radiating to the Asian and even global markets. According to industry analysts, with the spread of the new crown pneumonia epidemic in Europe, America, Japan and South Korea, the production and sales of multinational car companies in these regions will face a great challenge. In contrast, the Chinese auto market is gradually returning to normal, as well as relevant policies to stimulate auto consumption at the national level and in various provinces and cities. In the second half of the year and even in 2020, the auto industry may show a new phenomenon: global auto revenue It will mainly rely on the Chinese market, and China will also become an important cornerstone for the future development of the global auto industry.

Recently, CCTV’s “Special Report on the War Epidemic: Research Tour on Resumption of Work and Production” reported that Geely Automobile is rapidly resuming work and production with the help of Ningbo government departments. At present, 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 holiday have begun to be delivered to customers. The epidemic quickly spread to the world, and overseas car companies announced temporary suspension of production. As the domestic epidemic is gradually brought under control, auto companies and suppliers are ushering in the resumption of work and production. The Chinese auto market, which has suffered a fatal blow before, is expected to become the main market for global auto revenue in 2020. According to data from the China Automobile Association, as of March 11, most of the 23 enterprise groups (with annual sales accounting for more than 96%) closely tracked by the association have resumed work, and the employee return rate is 77%. Among them, 18 companies including Changan, Chery, Jianghuai, Brilliance, Sinotruk, Yutong, King Long, and Shaanxi Automobile have all resumed work. What is even more exciting is that recently, some car companies in Hubei, which are at the center of the epidemic, have also reported good news of resumption of work.

At the recent press conference of the Joint Prevention and Control Mechanism of the State Council, the person in charge of the Ministry of Industry and Information Technology specifically emphasized that the Ministry of Industry and Information Technology has communicated with the local people in Hubei to support the auto industry components as a priority industry to resume work. Car companies have even launched various self-rescue measures.

Some provide employees and suppliers with anti-epidemic materials to support their resumption of work. For example, Shenlong Motors has formulated a detailed plan for resumption of work, involving transportation, catering, office space, protective materials, epidemic prevention and quarantine, emergency protection and other aspects of returning employees. All dealers have distributed anti-epidemic materials. To reduce the burden on dealers, for example, SAIC Roewe has launched six major measures of “double decompression, double support, and double care” around sales operations and after-sales service to empower dealers to reduce pressure. Those who have cross-border production of masks can not only help fight the epidemic, but also perfectly realize the resumption of work and production, which can be described as a win-win situation. For example, SAIC-GM-Wuling, BYD, GAC and many other car companies.

BYD also stated that the current production of masks is increasing at a rate of 300,000 to 500,000 per day, and it has now reached a production capacity of 5 million masks per day, which is equivalent to 1/4 of the previous national production capacity. There are also companies that directly choose to lay off employees and cut wages. For example, SAIC was the first to announce a salary cut; WM Motor canceled the year-end bonus for all employees, and the 13th salary was postponed to June. Although the measures of car companies to cut wages are not entirely affected by the epidemic, the epidemic has also forced car companies to seize the opportunity for transformation to a certain extent. It is understood that there are currently 20 brands including luxury car brands such as BMW, Audi and Tesla, joint venture brands such as Volkswagen, Ford, Buick, Toyota and Hyundai, independent brands such as Geely, Changan and Great Wall, as well as Weilai and Xiaopeng. More than one auto brand has launched a “cloud car sales” service with zero contact with customers to find a “new road”.

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