IT + CE
China car market to slip 22% in 2020, says Yulon Nissan
Nuying Huang, Taipei; Adam Hwang, DIGITIMES

New car sales in the China market are expected to slip 22% to 20 million units in 2020, Taiwan-based Yulon Nissan Motor, has estimated.

China-based carmaker Dong-Feng Nissan, in which Yulon Nissan holds a 10% stake, sold 161,000 cars in China in first-quarter 2020, declining 44.7% on year, and aims to sell 1.27 million units in the whole year.

Mainly due to the impacts of the coronavirus pandemic on the China car market, Yulon Nissan's first-quarter 2020 consolidated revenues dropped 16.73% on year to NT$7.301 billion (US$243.76 million), while net profit reached NT$178.6 million, down 88.17%.

In the Taiwan market, 422,000 automobiles (not including buses and heavy-duty cars) will be sold in 2020, decreasing 1.1% on year, according to Yulon Nissan, a joint venture established by Taiwan-based carmaker Yulon Motor and Japan-based Nissan Motor.

The forecast is based on the assumption the Taiwan government will extend reduction in commodity tax by NT$50,000 to encourage replacements of old cars with new ones, for the reduction, equivalent to a subsidy, is scheduled to expire on January 7, 2021, Yulon Nissan president Leman Lee explained. If the reduction expires as scheduled, there would be a rush to buy new cars in second-half 2020, resulting in actual car sales higher than the forecast figure, Lee noted.

In 2020, Yulon Nissan aims to sell 35,000 cars for a Taiwan market share of 8.3%, Lee said. Viewing that imported automobiles have taken up over 50% of the car sales volume in the Taiwan market, Yulon Nissan will cope with competition from imported cars through boasting higher performance-price ratios for car models produced by Yulon Motor and expanding introduction of Nissan car models for sale in Taiwan, Lee indicated.

Realtime news
© 2020 DIGITIMES Inc. All rights reserved.
Please do not republish, publicly broadcast or publicly transmit content from this website without written permission from DIGITIMES Inc. Please contact us if you have any questions.