Coronavirus could contract China’s lucrative auto market by 3%-5% in 2020: LMC

by   |  VIEW 289
Coronavirus could contract China’s lucrative auto market by 3%-5% in 2020: LMC

On Friday, the 7th of February 2020, the London-based auto-industry consultant, LMC Automotive Limited, a highly respected producer of market analysis and forecasts to the automotive industry, had issued a public statement saying that the latest coronavirus outbreak in China could curb out China’s automotive industry's sales and production between 3 per cent to 5 per cent in 2020, if the epidemic entered in to the Q2, 2020.

In point of fact, it took nearly six months for China’s coronavirus-related SARS (Sever Acute Respiratory Syndrome) to kill 600 people back in the 2002s, while 2012-13’s Middle East coronavirus outbreak took roughly 2 years to lead to the death of nearly 500 people, however, this year’s coronavirus epidemic had killed nearly 700 people in last two weeks and battered investors’ confidence.

Meanwhile, referring to the rancorous impact of latest China coronavirus epidemic, LMC Automotive said in a statement on Friday (February 7th), “The epidemic is damaging consumer confidence, delaying purchasing, and impacting China's consumer economy which accounts for more than half of the country's gross domestic product.

In this scenario, China’s GDP growth rate would drop towards 5% for 2020. ” Apart from that, the London-based automotive industry consultant had also added that the recent China coronavirus outbreak could disrupt supply chains of a swathe of auto industries across the world ranging from Far-east Asia to Central Europe to Northern America.