(Yicai Global) March 5 -- Car production and sales came to a virtual halt in China last month due to the impact of the coronavirus outbreak, with one firm -- Haima Motor -- reporting zero output and a 93 percent crash in sales.

Car sales in the country fell by a monthly record in February, plunging 80 percent from a year earlier, according to preliminary figures the China Passenger Car Association published yesterday. Over the first two months of this year, the drop was 41 percent, the steepest in almost 20 years.

"Consumers put off visits to the 4S stores due to infection concerns and restricted travel," according to the China Automobile Dealers Association. That "not only resulted in a decline in new car purchases, but also a substantial drop in people going to the stores for vehicle maintenance and repairs."

Last month, Zhengzhou-based Haima sold just 134 vehicles. Today, its shares [SHE:000572] fell 0.8 percent to close at CNY2.52 (36 US cents) each, after trading between 2 percent lower and 1.6 percent higher.

The Covid-19 epidemic had a significant impact on production and sales, but Haima is operating normally, with staff back at work and the supply chain gradually restored, its board secretary said.

Other automakers also took a hit. King Long Motor produced 39 percent fewer vehicles, with sales down 61 percent. Jiang Ling Motors saw a 57 percent drop in output and a 65 percent reduction in sales, while cars made and sold by Zhengzhou Yutong Group were down 67 percent and 64 percent, respectively.

"Stores in the automobile sector -- for sales, spare parts, services and surveys -- were generally closed in the first half of February, with 50 percent of them resuming business gradually over the third week, and the share had increased to more than 70 percent in the fourth week," the CADA said.

But as the outbreak slowed, the CPCA said that dealership turnover surged in the fourth week of February, new car models were launched and consumer car-buying activity accelerated. In addition, with various cities, including Guangzhou, unveiling policies to stimulate auto consumption there will be an increase in compensatory consumption of vehicles later.

Editor: Peter Thomas