Homepage |
首页 新闻动态 法律服务 数据服务 项目服务 投资环境 投资服务机构 经济开发区
Macro-Economy | Business Economy | Industrial Economy | Regional Economy

Home >News >Full article
Coronavirus-related supply chain risk easing for China carmakers: Fitch
2020/4/1 15:11:12 Source:Xinhua

BEIJING, March 28 (Xinhua) -- The orderly resumption of industrial production and a recovery in transportation capacity has eased the risk of sustained automobile supply-chain disruption in China, according to a report from Fitch Ratings.

"We expect coronavirus-related disruption to automobile and parts production to be largely resolved by mid-April, although the global outbreak of the virus could cause supply shortages of certain imported parts, particularly for joint ventures that produce premium and high-end cars," the report noted.

Chinese regulators have prioritized production recovery for the automobile industry, among other long-value-chain industries, and urged local governments to gradually remove administrative barriers for plant reopenings while maintaining strict protocols for epidemic control.

Citing data from China Association of Automobile Manufacturers, the report said 90 percent of China's 23 largest auto groups had resumed work as of March 11.

But lagged recovery in production and logistics in the hardest-hit Hubei province will still cause short-term supply-chain disruption, the ratings agency added.

Meanwhile, the continued outbreak around the world could interrupt the supply-chains of some Chinese automakers over the next few months, but overall risks remain manageable in light of China's complete auto-supply chain and small exposure to auto-part imports, said the report.

China's passenger vehicle sales dropped sharply in February, with retail sales plunging 78.5 percent year on year to 252,000 units, according to the China Passenger Car Association.

Fitch expects a sharp recovery in car demand in the second half of the year, driven by consumers' rising desire for private mobility and consumption-stimulus policies. But it is unclear how a prolonged global slowdown will affect consumer behavior in China, the agency added.

Print Collection Close
 Related News More>>
 Site Map | About Us | Services | Links | Statement

Ministry of Commerce of the People's Republic of China Department of Foreign Investment Administration

Operated by Investment Promotion Agency of MOFCOM

Tel:  (86-10) 64404554

Copyright by Invest in China

Fax: (86-10) 64515317

ICP Record No.: Beijing ICP 06041048-4 E-mail: service@fdi.gov.cn