With the novel Coronavirus spreading to South Korea, Iran and Italy, business has taken a huge hit in China. For instance, China — the world’s factory — has seen a 92 per cent dip in automobile sales in the first 16 days of February.
Only 4,909 units were sold during this period as compared to 59,930 vehicles sold in the same period a year earlier. Most car dealerships, like other business outlets, remained shut during this time.
Car maker Geely, owner of Volvo, is pushing online sales of cars to counter the lockdown.
Jaguar-Land Rover is reportedly flying over car parts from its Chinese suppliers in suitcases.
Apart from automobiles, the scenario is equally grim across most sectors. German sportswear brand Adidas announced that its sales in China were down by 85% as compared to last year. Apple too warned that it will not meet its revenue targets given the slow pace of factory re-openings in China, where most iPhones are manufactured.
Procter & Gamble, one of the largest consumer products maker, depends on over 367 suppliers in China. In a federal filing this week, the company announced that such disruptions in supply and demand will affect their business strongly. China is reportedly its second-largest market, both sales and profit-wise.
Meanwhile, the death toll due to the novel Coronavirus stands at 2,236 with more than 75,400 positive cases in mainland China.