China, which is currently reeling back to normalcy after the outbreak of COVID-19 is now aiming to revive the auto industry by handing out cash to car buyers. In a normal year, the country records the sale of more than 60 lakh cars, which was reduced to a mere 37 lakh during the lockdown.
In comparison to the sales of last year’s first quarter, the Chinese auto industry suffered a decline of 42 per cent, according to a data released last week by the China Association of Automobile Manufacturers (CAAM). This amounts to a whopping 79 per cent plunge in the month of February when the country recorded sales of just 3,10,000 vehicles.
The auto industry in China plays a crucial role in the country’s economy where more than 40 million people rely on the sector for jobs. The industry generates more than $1 trillion in revenue each year that amounts roughly 10 per cent of the country’s manufacturing output.
At the moment, China’s economy is still trying to rebound after the government imposed a lockdown on major cities and restricting travel. Car production, at least, has started to resume in China: Even Wuhan, the original epicentre of the virus and a major hub for the global auto industry, ended its 76-day lockdown last week.
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