Coronavirus Outbreak: Automotive Industry Fights Back with Business Mitigation Strategies
The coronavirus outbreak isn’t just a massive health crisis; it’s an economic one as well. Businesses across the world are faltering as China, one of the nerve centers of the global economy, struggles to cope with the epidemic. For the world’s economic health, an early resolution to the crisis isn’t just a hope, it’s an imperative.
China is one of the largest automotive markets in terms of production volumes. In 2019, its auto industry manufactured approximately 25.7 million passenger vehicles and generated revenues of over US$570 billion. Despite the slowdown of China’s economy, the global automotive industry continues to be heavily influenced by the supply of auto parts from the country. Hubei is one of the five major automotive manufacturing hubs in China, hosting numerous OEMs and over hundreds of auto parts suppliers. Production volumes of global OEMs with manufacturing plants in China are also being impacted, although the impact is currently minimal.
Among the Many in the Peril
China is one of the largest automotive markets in terms of production volumes. In 2019, its auto industry manufactured approximately: