Research on the Influence of COVID-19 on Overall Sales of Cars and Cars in Different Categories in China

Abstract

COVID—19 outbreak has caused a global economic recession; automotive industry plays a key role in economy nowadays. Previous studies were focused on the short-term impact of the COVID outbreak. This study is aimed to evaluate two years after the COVID outbreak, what impact did COVID post on the Chinese automotive industry overall and across different categories, how sales of car models with different price, nationality, and car type reacts to the COVID outbreak. The result of this study shows that COVID posted a significant negative impact on Chinese car sales overall. The higher priced car models impacted less by the COVID outbreak, chinse models impacted more by the COVID outbreak, and no significant evidence to show how SUV models impacted by the COVID outbreak. These findings can help car companies to make the most ideal production, operation and supply chain management decisions when a natural shock happens in the future.

Exploring the Impact of the COVID-19 Pandemic on Automobile Sales: A Confirmatory Composite Analysis Using Google Trends Data to Develop a Structural Equation Model

“…Other studies, such as those by Lyu (2022); Kufelová and Raková (2020); Török (2020) also shed light on the effects of COVID-19 on the automotive industry, particularly in China and Europe. Török emphasizes the importance of stimulating market demand with public funds to counteract the decline in new car sales and the resulting panic in the automotive value chain.…”

“…Furthermore, Lyu (2022) evaluates the impact of COVID-19 on the Chinese automotive industry, revealing that Chinese car sales were significantly affected, with higher-priced car models being impacted less and Chinese models being impacted more. Kufelová and Raková ( 2020) focus on the economic impacts of the pandemic on the Slovak economy, specifically on the automotive industry, leading to production shutdowns and supply chain disruptions.…”