With the resurgence of the pandemic and a sharp drop in passenger traffic, Beijing's auto market is under immense pressure.
2020-06-19
With the pandemic surging again and passenger traffic plummeting, Beijing's auto market is under immense pressure.
Beijing had gone nearly 60 days without any locally transmitted cases, but since June 11, in just five short days, the city has already reported 107 confirmed cases. As of 9 a.m. on June 16, Beijing now has 107 confirmed COVID-19 cases—27 more than the previous day. It’s safe to say that Beijing is once again entering an "extraordinary moment" in its fight against the epidemic. To better contain the outbreak, Beijing has launched comprehensive nucleic acid testing for all individuals linked to the Xinfadi market; so far, 76,499 people have undergone testing. By June 15, all communities (villages) across Beijing had adopted a three-tier emergency response system, implementing Level-2 prevention measures while maintaining a Level-1 operational readiness—effectively putting the city on full "wartime footing." Although Beijing’s various departments have responded swiftly, working tirelessly to control the epidemic more quickly and efficiently, the recurring nature of the outbreak undoubtedly poses another significant challenge for Beijing’s automotive industry, which has only recently begun to return to normal operations.
Previously, Beijing launched the "Beijing Consumption Season" campaign to boost economic recovery following the pandemic. 2.2 billion yuan in government and enterprise coupons, plus 10 billion yuan in platform coupons, were distributed to various industries. As a major Beijing automaker, BEIJING Auto actively participated in the season, achieving sales of 180 million yuan in a single day and selling a total of 1,304 models, a strong start.
"Beijing Consumption Week" undoubtedly boosted auto sales. Furthermore, Fengtai District, the area hardest hit by the recent outbreak, introduced a car purchase subsidy policy to boost auto consumption, offering up to 3,000 yuan per vehicle. However, the sudden impact of the pandemic may significantly reduce the effectiveness of these sales-boosting measures.
However, according to an investigation by the Auto Headlines app, auto dealerships around Xinfadi in Fengtai District, the epicenter of the Beijing outbreak, remain open. A salesperson at a FAW Toyota dealership near Xinfadi told Auto Headlines in a phone interview, "You only need to have your temperature taken before you can enter the store to view the cars." A salesperson at a Dongfeng Nissan dealership said, "Although we're still open, customer flow has been significantly impacted, and not many people are coming in to view the cars."
In fact, Beijing is the city with the highest number of cars in China. In 2019, Beijing had 6.365 million motor vehicles registered, an increase of 281,000 compared to the end of the previous year. Among these, 5.908 million were passenger cars, up by 162,000 units—accounting for 4% of the nation’s total passenger car ownership. Moreover, Beijing’s cumulative sales of passenger vehicles in 2019 reached 560,257 units. Although this figure represents only 2.6% of the country’s total passenger car sales, it’s undeniable that, thanks to Beijing’s strong presence in both the luxury car market and the new-energy vehicle segment—where the city holds a significant market share—the capital’s automotive industry plays a pivotal role in China’s broader auto market.
Therefore, Beijing has repeatedly introduced policies to boost automobile consumption, including implementing a plan to encourage the retirement and replacement of high-emission, older vehicles; exploring new lottery-based measures that prioritize car-buying allocations for Beijing households without vehicles, thereby stimulating purchasing among families with genuine needs; and adopting innovative approaches such as centralized processing through e-commerce platforms and online signing for customers purchasing cars outside Beijing, all aimed at streamlining the procedures for transferring used cars out of the city.
Multiple favorable policies for the automotive market are expected to help Beijing's car market recover, but the recent resurgence of the epidemic will undoubtedly impact it. Cui Dongshu from the China Passenger Car Association stated in an interview with the Auto Headlines app that while the current outbreak in Beijing may lead to a decline in customer traffic and reduce the frequency of people visiting dealerships to buy cars, the city's auto market won't face significant disruptions. In fact, to some extent, this renewed surge in cases could even boost consumers' desire to purchase vehicles—after all, compared to public transportation like buses and subways, owning a car is generally considered a safer option. Looking ahead, based on past patterns of epidemic control, it’s anticipated that Beijing’s latest outbreak will likely enter its most challenging phase within at least 28 days. As the situation continues to evolve, how exactly will the Beijing car market be affected? We’ll keep a close eye on developments.
Translated from Sina Auto
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With the resurgence of the pandemic and a sharp drop in passenger traffic, Beijing's auto market is under immense pressure.
2020-06-19
With the pandemic surging again and passenger traffic plummeting, Beijing's auto market is under immense pressure.
Beijing had gone nearly 60 days without any locally transmitted cases, but since June 11, in just five short days, the city has already reported 107 confirmed cases. As of 9 a.m. on June 16, Beijing now has 107 confirmed COVID-19 cases—27 more than the previous day. It’s safe to say that Beijing is once again entering an "extraordinary moment" in its fight against the epidemic. To better contain the outbreak, Beijing has launched comprehensive nucleic acid testing for all individuals linked to the Xinfadi market; so far, 76,499 people have undergone testing. By June 15, all communities (villages) across Beijing had adopted a three-tier emergency response system, implementing Level-2 prevention measures while maintaining a Level-1 operational readiness—effectively putting the city on full "wartime footing." Although Beijing’s various departments have responded swiftly, working tirelessly to control the epidemic more quickly and efficiently, the recurring nature of the outbreak undoubtedly poses another significant challenge for Beijing’s automotive industry, which has only recently begun to return to normal operations.
Previously, Beijing launched the "Beijing Consumption Season" campaign to boost economic recovery following the pandemic. 2.2 billion yuan in government and enterprise coupons, plus 10 billion yuan in platform coupons, were distributed to various industries. As a major Beijing automaker, BEIJING Auto actively participated in the season, achieving sales of 180 million yuan in a single day and selling a total of 1,304 models, a strong start.
"Beijing Consumption Week" undoubtedly boosted auto sales. Furthermore, Fengtai District, the area hardest hit by the recent outbreak, introduced a car purchase subsidy policy to boost auto consumption, offering up to 3,000 yuan per vehicle. However, the sudden impact of the pandemic may significantly reduce the effectiveness of these sales-boosting measures.
However, according to an investigation by the Auto Headlines app, auto dealerships around Xinfadi in Fengtai District, the epicenter of the Beijing outbreak, remain open. A salesperson at a FAW Toyota dealership near Xinfadi told Auto Headlines in a phone interview, "You only need to have your temperature taken before you can enter the store to view the cars." A salesperson at a Dongfeng Nissan dealership said, "Although we're still open, customer flow has been significantly impacted, and not many people are coming in to view the cars."
In fact, Beijing is the city with the highest number of cars in China. In 2019, Beijing had 6.365 million motor vehicles registered, an increase of 281,000 compared to the end of the previous year. Among these, 5.908 million were passenger cars, up by 162,000 units—accounting for 4% of the nation’s total passenger car ownership. Moreover, Beijing’s cumulative sales of passenger vehicles in 2019 reached 560,257 units. Although this figure represents only 2.6% of the country’s total passenger car sales, it’s undeniable that, thanks to Beijing’s strong presence in both the luxury car market and the new-energy vehicle segment—where the city holds a significant market share—the capital’s automotive industry plays a pivotal role in China’s broader auto market.
Therefore, Beijing has repeatedly introduced policies to boost automobile consumption, including implementing a plan to encourage the retirement and replacement of high-emission, older vehicles; exploring new lottery-based measures that prioritize car-buying allocations for Beijing households without vehicles, thereby stimulating purchasing among families with genuine needs; and adopting innovative approaches such as centralized processing through e-commerce platforms and online signing for customers purchasing cars outside Beijing, all aimed at streamlining the procedures for transferring used cars out of the city.
Multiple favorable policies for the automotive market are expected to help Beijing's car market recover, but the recent resurgence of the epidemic will undoubtedly impact it. Cui Dongshu from the China Passenger Car Association stated in an interview with the Auto Headlines app that while the current outbreak in Beijing may lead to a decline in customer traffic and reduce the frequency of people visiting dealerships to buy cars, the city's auto market won't face significant disruptions. In fact, to some extent, this renewed surge in cases could even boost consumers' desire to purchase vehicles—after all, compared to public transportation like buses and subways, owning a car is generally considered a safer option. Looking ahead, based on past patterns of epidemic control, it’s anticipated that Beijing’s latest outbreak will likely enter its most challenging phase within at least 28 days. As the situation continues to evolve, how exactly will the Beijing car market be affected? We’ll keep a close eye on developments.
Translated from Sina Auto
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