China's passenger car market saw a sharp contraction in the first quarter (Q1) of 2020 amid the unprecedented halt brought by the novel coronavirus outbreak, data from an industrial association showed.

Excluding minivans, the aggregate vehicle sales in Q1 plunged by 41 percent year on year to 3.01 million units, hitting a record low in recent years, according to the China Passenger Car Association (CPCA).

Signs of a gradual thaw in the car market appeared as most auto retail stores, except certain areas including Hubei, have restarted services, with customer numbers resuming at 70 percent of previous levels. The retail sales in April are estimated at 1.39 million units, slightly down by 8 percent year on year, the CPCA said.

The association expected the car market to warm up in April amid hope generated by the stimulus packages and effective virus containment moves, but also warned of the uncertainties caused by the virus-related disruption to the global economy and supply chains.

China has introduced new incentives and loosened car-purchase limits to stimulate the flagging automobile market.

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