CHINA’S auto market, the world’s largest, is likely to see sales slide more than 10 percent in the first half of the year due to the coronavirus, the country’s top auto industry body has predicted.

“We predict auto sales will drop by more than 10 percent in the first half of this year, and around 5 percent for the whole year if the epidemic is effectively contained before April,” said Fu Bingfeng, executive vice chairman of the China Association of Automobile Manufacturers (CAAM).

Its forecast is grimmer than an initial prediction made last month for a 2 percent dip in sales this year.

Auto executives say the coronavirus is taking a severe toll on the industry, sapping buyer demand and disrupting supply chains for car makers globally.

The CAAM, China’s top auto industry body, whose members include hundreds of automakers, suppliers and other companies in the sector, conducted a poll among members after the outbreak and submitted findings and suggestions to government, Fu said.

The association has asked the government to offer more policies to support the industry, such as changes to auto-related taxes, and moderately adjust interest rates and banks’ reserve requirement ratio, he said.

It has also asked the government to offer more fundraising support and credit lines to companies.

Auto sales in China, where more than 25 million vehicles were sold last year, likely fell around 18 percent in January from a year earlier, preliminary data from the CAAM showed last week. Industry sales fell 8.2 percent last year, the second consecutive year of contraction.

(SD-Agencies)