Oxford, UK — Passenger vehicle production in China was 2.1m units in April 2020. This is a 2.0% fall compared with April 2019, according to consultants LMC Automotive.
Looking at the year to date figures LMC Automotive said that a total of 5.6m units had been produced in the first 4 months of 2019 This is a fall of 33% compared with the same period in 2019.
LMC Automotive said 'the market appears to be back in action. The numbers certainly give room for optimism, particularly as the recover in wholesales and production in April surpassed expectations.' But the consultants warned that 'the market is still overshadowed by a great deal of uncertainty. Consumer confidence is reeling from the pandemic.' This is damping willingness to spend.
Research on consumer spending plans from the People's Bank of China 'showed a clear tendency toward saving at the expense of consumption or investment,' according to LMC Automotive.
The higher numbers for April are due to pent-up demand from February and March, when production was down by 79% and 49%. Demand in the second half of the year is likely to be similar to the second half of 2019, said LMC Automotive.
