April new-vehicle sales rose 4.4 percent [annually] to 2.07 million as the country eased virus-related curbs on travel and commerce, ending 21 consecutive months of declines, according to the industry trade group. (Automotive News)
Vinay's key takeaways:
- Monthly sales had declined 79% in February and 43% in March, with the COVID-19 outbreak and enforced lockdowns keeping buyers away.
- Monthly sales last rose y/y in June 2018. With the sales trend finally showing signs of recovering, we expect sales to continue increasing over the next two months, with pent-up demand being fulfilled.
- However, even as China shows signs of recovering from the outbreak, CAAM still expects auto sales to drop 15% in 2020, from over 25 million units in 2019.