BEIJING -- China may issue new policies to stimulate vehicle demand, with the country's auto industry still facing difficulties, Xin Guobin, vice minister of industry and information technology, said on Monday.
There is still not enough demand for vehicles, Xin told reporters, as the outbreak of the coronavirus has dramatically cut private consumption.
Cars account for a big portion of China's overall industrial production, and are the main driver of the country's retail sales.
China is also working to help its suppliers resolve cash flow problems, Xin said.
While much of the world's car production is coming to a halt because of the coronavirus, China is slowly returning to normal by restarting output at its factories. Employees are returning to work, production lines are starting to roll and even the original outbreak epicenter of Wuhan is beginning to get back to normal.
The recovery provides some relief for some China-based automakers in the months ahead as the outbreak continues to wreak havoc in Europe, U.S., India and Latin America.
Automotive News Europe contributed to this report