China Association of Automobile Manufacturers (CAAM) has reportedly revised its estimate for China’s auto sales in 2020. From the previous estimate of a decline of 15-25 per cent, the association shows a sign of improvement expecting the sales to drop by 10-20 per cent, in line with China’s economy revival and market recovery from the COVID-19 pandemic.
CAAM data showed that China’s auto sales surged by double-digit in May, boosting optimism over the recovery from the Covid-19 crisis. The sales in the said month grew 14.5 per cent year on year, much faster than an increase of 4.4 per cent in April.
Also, the decline of 22.6 per cent registered in the first five months of 2020 to 7.96 million units was 8.5 percentage points smaller than the decline seen in January-April period.
On the other hand, the economy revival in China is also expected to lead to the global aluminium demand recovery from the ongoing crisis, pointed out Alcoa CFO William F. (Bill) Oplinger in early June.
Oplinger, while participating during a virtual presentation for the Deutsche Bank Global Industrials & Materials Summit, said: “China is leading the recovery, and we are seeing some sectors in China reporting growth higher than 2019 levels in areas like industrial production, vehicle production, commercial starts and food and drink sales.”
According to him, the aluminium orders for the second half of 2020 represent a positive sign for the near-term.
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