China auto sales likely tumbled 18% in January, coronavirus seen taking heavy toll

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China auto sales likely tumbled 18% in January, coronavirus seen taking heavy toll
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China's January auto sales expected to fall 18 percent year-on-year, 19th month of decline

BEIJING/SHANGHAI - China’s vehicle sales likely fell by almost a fifth in January, marking a 19th consecutive month of decline, hurt by Lunar New Year holidays that started earlier than last year and by the coronavirus outbreak.

The epidemic will hit auto sales and production hard in the short term, the China Association of Automobile Manufacturers said, predicting competition in the industry would get fiercer and some smaller parts suppliers could collapse. An extension of the holidays to counter the virus also discouraged dealers from ordering cars at the end of the month as is their usual practice.

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