Dongfeng Motor Group, the third biggest Chinese-state owned automaker, is headquartered in Wuhan, Hubei, China.
A recent footage released by The Epoch Times, a news agency founded by Chinese-Americans in the US, showed the Dongfeng’s plant in Wuhan. It can be seen that the plant has miles of unsold new cars in their plant.
While this footage may come as a shock to the observers who are betting high on the Chinese market for recovery in the automotive industry, it nonetheless shows the negative impact of the coronavirus pandemic caused in the country.
About 83,572 people in China, have been confirmed as being infected with the coronavirus of which 78,548 have made recovery. The virus has killed 4,634 people in the country. Although these figures are heavily disputed and experts say the government has deliberately under-reported the figures.
China recently had a military conflict with India, after which the Indian government and companies started to boycott products which are made in China.
The on-going trade war between the US and China might be another contributing factor.
In June, the retail sales of sedans, SUVs, minivans and multipurpose vehicles dropped 6.5% to 1.68 million units in June from a year earlier, the China Passenger Car Association (CPCA) reported on Wednesday.