Page 14 - GIADA May-June 2020

Chinese Auto Industry on Road to

COVID-19 Recovery

The world’s largest automotive market is still feeling the aftershocks of

COVID-19, consultant Michael Dunne says. Sales this year could finish
at roughly 20 million units, down from a high of 27 million units.

By Jim Irwin

The COVID-19 pandemic has changed Ford and Fiat Chrysler are in an even want it or not.” Government and taxi fleets
daily life in China, where it originated, worse position in China, while Tesla is the account for many EV sales.
but it hasn’t disrupted automakers’ plans U.S. automaker with the best chance of
to continue developing electric and competing against German luxury brands China is ahead of the U.S. in developing an
autonomous vehicles – or their designs Mercedes-Benz, BMW, Porsche and Audi, EV-charging infrastructure, he says, noting
on the U.S. market, industry consultant which sell a combined 2 million units a the government requires the installation
Michael Dunne says. year, he says. of charging stations at new housing
developments.
One of the first Chinese auto companies All foreign automakers are operating at
expected to set up in the U.S. is Zotye, a time when “U.S.-China relations have Ride sharing is down but not by much,
which plans a network of more than not been this bad in 40 years,” Dunne while use of mass transit “nosedived” in
100 dealers selling models costing about says. “There’s not a lot of common the throes of COVID-19 but is not going
$20,000, Dunne, head of Asia auto- ground.”Michael Dunne ZoZo Go CEO.jpg away in areas with high population density,
industry consultancy ZoZoGo, says during Dunne says.
an Automotive Press Assn. webinar. Asked if it was conceivable that U.S.
automakers could be forced out of China, The country still operates under restrictions
Fourteen Chinese companies are testing Dunne – noting Renault and Suzuki have on personal movement and continues
autonomous vehicles in California and left the market – says it’s more likely to require social distancing to control
nearly 80 suppliers are operating in difficulties would accumulate before they COVID-19, Dunne says. “China certainly
Michigan alone, he says, adding, “China ultimately would say, “We’re done.” doesn’t feel it’s past the storm.”
is determined to be the export center for
electric vehicles globally.” The world’s largest automotive market is The Chinese government has more power
still feeling the aftershocks of COVID-19, to control citizens’ actions than does the
For the Detroit 3, China presents challenges Dunne says. Sales this year could finish at U.S. The greatest challenge in the U.S.
that predate travel restrictions prompted by roughly 20 million units, down from a high may be continuing to observe social
COVID-19, Dunne says. General Motors of 27 million units. distancing, washing hands, wearing masks
sold 4 million cars in the country in 2017 and undergoing body temperature checks,
and is projected to sell just 2.4 million The government continues to offer he says, noting the Chinese “can’t get over”
this year. Long-established brands such as incentives and is easing up on restrictions many Americans’ lack of seriousness about
Buick have slipped in prestige and aren’t on EV sales, he says, adding: “They’re really COVID-19. n
necessarily seen as aspirational by Chinese trying to steer demand for electric vehicles.
consumers, he says. EVs are in the picture whether consumers

12 | GIADA Independent Auto Dealer MAY/JUN 2020