News ID : 3902
Publish Date : 04 February 2020 - 09:05
While in the last months of the year automakers are increasing their daily production it has been predicted that 30 percent of production will decrease as the flights from china is closing and first materials are low.
\Khodrocar – Coronavirus which has killed 420 Chinese till now had trouble effects on the auto industry too. Although CEO Robert Bush, the world's largest auto parts supplier, has warned that the Corona virus could affect the global auto parts supply chain, Volkmar Denner, CEO of Stuttgart, has insisted that we are naturally concerned, but that there is currently no trade disruption.

Meanwhile, car industry officials believe that import bans and airbags will face a major challenge due to a ban on flights and commuters, which could lead to reduced production in the Iranian car industry.

"Although it is not possible to say for sure about the decline in car production with the virus, it is undoubtedly impressive because of the high levels of trade with China and is currently one of the few countries with which it can cooperate in the automotive industry.” Saeed Madani, expert of auto industry told khodrocar reporter.

"Some of these parts are currently being domesticized in the country, but some parts of the country where domestic demand is not met through imports from China, which could be affected by the spread of the virus.” He added.

"The spread of the virus has undoubtedly made the automotive industry more difficult to work with, and can only be hoped for if the virus is properly controlled and quarantined.” He clarified.

"Until the last few years, China's automobile market had been consuming its consumer market and not much of an export market, sending only a small percentage to a few carriers and supplying much of its need, so it could not affect global markets.” He said.

"Because there is cheap labor in China, automobile brands have set up factories in China, with the closure of their factories possibly affecting the decline in production and ultimately challenging the world auto industry.” He said.

The situation is that all the car brands in the world that have previously set up factories in China are shutting down and assembling their own factories. On the other hand, auto parts supplier Bush also announced the closure of its brand in China, which will undoubtedly affect the automotive supply chain. How long it will take for China's auto industry to recover from this situation and what measures it will take to make up for that loss.

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