GAC Group reports sizable sales drop

GAC Group, a leading automobile manufacturer in Guangzhou, capital of Guangdong province, reported a sharp sales decline in the first two months of 2020 due to the novel coronavirus outbreak, according to a company source.

Sales dropped about 37 percent year-on-year to 196,000 units of cars between January and February, according to Zeng Qinghong, chairman of GAC Group.

"The novel coronavirus has had huge impact on China's automobile industry," Zeng said.

China's overall sales declined 42 percent year-on-year in the first two months, according to the China Association of Automobile Manufacturers.

As of last Friday, nine subsidiaries under GAC Group have all resumed production, realizing 60 percent of its production capacity, according to Zeng.

To offset the business decline, Zeng said the company would make more efforts to ensure supplies of raw materials from home and abroad, as the company had already developed relations with 180 suppliers based in Hubei province, center of the disease outbreak, as well as a great number of overseas suppliers.

"Moreover, we will issue preferential financial policies for customers in the market and boost exports of our products," Zeng said at a press conference on Monday.