The auto industry and aviation sector in China are suffering as the government has closed several cities and travel flights have been suspended to contain the spread of Coronavirus infection.
Car sales in China fell by 79% compared to last year, the largest monthly decline ever with only 310,000 vehicles sold, and electric car sales fell by 75%, although the government is promoting its approval.
The China Aviation Regulatory Authority said the industry recorded its worst-ever financial performance in February as passenger traffic decreased 85% from the previous year to 8.3 million people, and commercial traffic decreased by 21%, according to the Civil Aviation Administration of China.
The collapse in Chinese markets came after the government’s measures of city closures and extended holidays in an attempt to tackle the spread of the Coronavirus, which has now infected more than 124,500 people and killed more than 4,600 people worldwide, according to the World Health Organization.
According to the report, global carmakers were forced to close their businesses, which increased the threats of continued car sales, hindering production in the country and disrupting global auto supply chains.
Airlines around the world are expected to lose $113 billion in sales if the virus continues to spread, according to the International Air Transport Association, noting that carriers in Asia and the Pacific alone may lose $58 billion in sales.
China is trying to regain control, as it started reaping the fruits of the maximum measures it had approved in the recent period, as the mainland of China announced on Wednesday 15 new cases of the virus, in a continuous decline in cases a week ago.
The Aviation Regulatory Authority said it will enhance the way it monitors international flights from affected areas, adding that it will classify flights based on the level of severity, which is determined based on the extent of the virus spread in the region from which the flight comes.