New-vehicle demand softened in the first 20 days of May after a modest rebound in April, underscoring the halting recovery the industry faces as consumers hunker down following the COVID-19 outbreak, even with widespread discounts and promotions.
Sales across the industry dipped 2.5 percent to some 971,000 in the first several weeks of the month, according to the China Association of Automobile Manufacturers.
By contrast, new-vehicle production surged 17 percent to nearly 1.14 million during the period, the trade group said.
With plants idled and showrooms shuttered during the coronavirus outbreak, which broke out in China in late January, new-vehicle deliveries across the country plunged 42 percent to approach 3.7 million in the first quarter.
The outbreak was largely brought under control in mid-March, and industry sales rose 4.4 percent to 2.07 million in April, ending 21 straight months of contraction.
In the first four months, new-vehicle sales slumped 31 percent to around 5.76 million.
The China Association of Automobile Manufacturers this month predicted China’s new-vehicle market would contract for the third straight year in 2020, with annual sales slipping at least 15 percent from 2019.