Global automakers bet on China for post-pandemic sales recovery
Updated 09:40, 29-Sep-2020
By Xia Cheng, Yang Jing
01:55

After being badly hit by the COVID-19 pandemic, carmakers gathered at the 2020 Beijing auto show, which kicked off over the weekend, to showcase their new vehicles, seeking a sales recovery in the world's first rebounding auto market.

The event, which has been postponed for about five months, is the only major international auto show to take place across the world this year owing to the COVID-19 pandemic, which forced auto shows to be cancelled in Geneva, Detroit and Paris.

Despite curbs on the crowd size and logistical challenges, there are 785 cars displayed at the event, including 82 public debuts, 14 from global automakers.

Thanks to effective control of the pandemic, China is the first major economy to have auto sales rebound to pre-pandemic levels.

As demand in the U.S. and Europe remains weak, automakers are banking on China to reverse their losses.

"There is a trend towards positive growth in the China auto market. We haven't concluded yet. But I think the trend this year might slow down a little bit overall. But the trend will still be upgrading, intelligent, EV (electric vehicles), which we have a very strong plan for," Anning Chen, president and CEO of Ford China, told CGTN at the auto show, noting prospects for the next year are not clear yet.

Considering the sales in China, especially in the premium sector, have been very strong after the lockdown, Richard Shore, president of Jaguar Land Rover's Integrated Marketing, Sales & Service, told CGTN at the event, "So we're optimistic that will sustain, at least to the end of 2020 and hopefully into 2021."

The recovery of the Chinese auto market depends on whether the pandemic remains under control, Thomas Zhang, head of Greater China Analysis at Uzabase, a Japanese business intelligence firm, told CGTN, noting he is "cautiously optimistic" about the market.

If there is no further outbreak and the economy continues to recover, China may expect auto sales growth in the last quarter, he said.

New energy vehicles (NEV) still take the spotlight on the event. Automakers are taking a ride on China's green drive to pump up their sales.

Audi made the Asia debut of Q4 e-tron concept, its electrification milestone, at the show. The German automaker said with its local partner FAW, the Q4 e-tron will be produced in China soon.

Jaguar Land Rover, the UK's biggest carmaker, launched its plug-in hybrid Discovery Sport P300e at the Beijing auto show, its first made-in-China new energy model that will be produced at its Changshu Plant in east China's Jiangsu Province.

China's commitment to carbon emission reduction supports the development of NEV, Zhang said, referring to China's goal of achieving carbon neutrality by 2060 with more forceful policies and measures.

With the auto industry in the shadow of the pandemic, China has extended its NEV subsidies, which would have been discontinued this year, to the end of 2022.