The Strategist

Chinese car industry goes upwards after slump in first half of 2020

10/07/2020 - 03:19

China's automotive manufacturing sector has recovered significantly in the first eight months of 2020, Xinhua reports.

Profit in China's automotive sector grew 1.5% year on year to 308.48 billion yuan (about $45.3 billion) from January to August this year against a 5.9% decline from January to July, according to the China Automobile Manufacturers Association, citing data from the National Bureau of Statistics.

The sector accounted for 8.3% of the total profits of all industrial companies with annual turnover of more than 20 million yuan. The sector's business revenues reached 4.79 trillion yuan, 1.8% lower year-on-year but 2.6 percentage points better than in the period from January to July.

China's automotive market has been hit hard by the new coronavirus epidemic, but it has begun to recover since April this year thanks to the release of deferred demand and the government's stimulus policy.