Chinese auto producers cut 2020 sales targets

China's main auto manufacturers have lowered their sales guidances for 2020 because of the impact of the Covid-19 pandemic.

Pick-up truck and sports utility vehicle manufacturer Great Wall Motor has cut its 2020 sales target to 1.02mn units from 1.11mn because of reduced sales in the year's first quarter following Covid-19 lockdowns.

Its auto sales rose to 395,097 units in January-June, up by 97.5pc from a year earlier but only 38.2pc of the firm's target for the year.

GAC has lowered its growth guidance to 3pc for 2020 from 8pc, which is equivalent to a production loss of 100,000 to 2.12mn units this year. It sold 824,600 units during January-June, only 38.9pc of its guidance.

Changan Automobile reduced its 2020 sales target to 1.91mn units from 4mn. The company's sales in the first half were 831,000 units, accounting for 43.5pc of the target.

China's automotive sales in June increased by 4.8pc from May and by 11.6pc from a year earlier to 2.3mn, data from the China's automotive manufacturers association show. But domestic sales during January-June fell to 10.26mn units, down by 16.9pc from a year earlier with the impact of Covid-19.

The slowdown in the auto industry is expected to pressure consumption of auto parts and their metal feedstocks, including aluminium, magnesium and silicon.