In select regions, China had removed limitations placed on buying cars to render sales from the sector stable. Moreover, the country is expediting plans to herd old cars into retirement, China’s Ministry of Commerce had disclosed on Thursday. Major automakers like Toyota, General Motors (GM), and BMW have reopened its factories in the country the same day.
“Our plants in China have resumed production on a staggered basis, including the two plants in Wuhan,” said a GM representative. “Only three out of 13 plants in China haven’t started production yet.”
China’s auto industry endured a 79% sales loss and is anticipating a 10% drop in June 2020.
According to Wang Bin, the deputy head of the ministry’s consumption promotion division, the ministry will continue extending aid to “realize the consumption potential” in the world’s biggest auto market.
China’s Ministry of Commerce will help Chinese automakers increase orders from foreign suppliers, restock inventories, and create alternative plans, Liu Changyu, a senior commerce ministry official, said in a statement.