Auto companies are witnessing a recovery in the Chinese market
Volkswagen AG, the world's largest automaker, saw global sales fall by nearly half in April. However, while the blockades related to the new epidemic in the United States and Europe have curbed demand, the restart of the Chinese economy has revealed signs of demand recovery.
The Chinese market is recovering, while demand in the Western market continues to be weak. The above data is the most striking new example of the decoupling of the performance of the Chinese market from the Western market. In recent weeks, data from other European automakers have reflected this trend.
Companies such as Volkswagen may find themselves becoming more dependent on China. Before the outbreak of the new epidemic, about 40% of Volkswagen's sales came from the Chinese market. In April this year, two-thirds of the company's global sales came from China.
Jurgen Stackmann, Volkswagen's brand sales director, said: "We saw two worlds in April." He called the Chinese market a "bright spot."