Jing Yang, director of corporate research at Fitch Ratings, expects electric vehicles to outperform an overall slump in China's car sales this year given strong policy support.
, and supports the economic contributions of the overall automobile industry. The auto sector accounts for about 10% of China's retail sales, and one-sixth of jobs, according to official figures for 2018 compiled by the Ministry of Commerce.
As people feel concerned about their incomes, their businesses, major discretionary purchases like buying a new car will no doubt be impacted.China also aims to increase the share of new energy vehicles in the market to a quarter in the next five years, up from just 5% last year, pointed out Jing Yang, director for corporate research at Fitch Ratings in Shanghai.
"The support of the market is actually a long-term strategy for the central Chinese government," she said, noting that since authorities began nurturing the industry several years ago, an entire value chain of manufacturers has arisen which depend on the growth prospects of the new energy vehicle market.As China battled Covid-19 in the first three months of the year, production of new energy vehicles fell 60.2% from a year ago to 105,000, while sales dropped 56.
"As people feel concerned about their incomes, their businesses, major discretionary purchases like buying a new car will no doubt be impacted. But it's very tough right now to gauge that degree of impact."
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