The world economy has been in a downward spiral these past few months especially as the coronavirus (COVID-19) continues to spread worldwide, affecting hundreds of thousands of people. But if there’s any other country worse hit by the outbreak, it’s China and the manufacturers situated there. Unfortunately, it’s not only the production of goods in China that were affected by COVID-19 as even the sales of automotive businesses have also dropped.
In the said segment, Geely Automotive Group has reported that the total sales volume of the group (which includes Lynk & Co) was down by around 75% compared to the same period last year. Specifically, the group only sold a total of 21,168 units for the entire month of February.
The Geely Group attributes this drop in sales mainly due to the disruption caused by the COVID-19 outbreak in China. They added that the reduced working days due to the Chinese New Year holiday has also affected the group’s performance during the period. However, the drop in sales didn’t only start this.
So far, the auto group has sold a total of 133,006 units for the first two months of 2020. This corresponds to a 45% decrease from the same period last year. As a result, Geely has only achieved 9% of the group’s target sales volume of 1,410,000 units in 2020.
As the coronavirus continues to spread, the trend of low sales will likely continue, not only for Geely, but for most companies around the globe. Fortunately, there are fewer new cases of people contracting the virus arising in China.
However, the spread of the virus has caused consumers from around the world to be somewhat averse from products made in the region. As we mentioned before, there is no need to be concerned since it is unlikely that the coronavirus can be carried by Chinese goods and cars.