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2/6/2020, 7:33 AM (Source: TeleTrader)
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Moody's: Chinese auto demand to offset virus worries

The demand in the Chinese auto industry will counteract the impact of negative sentiment due to the coronavirus, Moody's Investors Service said on Thursday. However, sales will decrease in the short-term as demand and corporate capital spending are seen as falling in the near-term.

Moody's vice president Gerwin Ho stated: "In the near term we expect the outbreak will hit sales as potential customers avoid crowded places, including dealerships, while production will be hampered by government-mandated days off, the reduced flow of migrant workers across China and disruption to the auto parts supply chains." He added: "However, we expect many customers are merely postponing their purchase and that long-term demand growth remains largely unaffected, supported by China's economic growth and low auto penetration."

Earlier. it was confirmed that the death toll from the coronavirus officially reached 560, but fears outside mainland China exist that the numbers may actually be significantly higher despite reassurances from the World Health Organization (WHO).

Baha Breaking News (BBN) / VP