With a big push from President Xi Jinping, large cities across China are starting to ease regulatory limits on new-vehicle demand. The measures are designed to provide relief for carmakers and dealers after new-vehicle sales tumbled 82 percent in February and struggle to gain traction in March.

With survey data from dealers and other sources, the China Passenger Car Association, in an optimistic scenario, predicts annual sales of new passenger vehicles will drop nearly 10 percent in 2020, about the best the industry can bank on at this time.

Beijing’s ability to attract a Tesla assembly plant was meant to help crown its drive to be at the forefront of the global EV market. But challenges stemming from the pandemic that has shut down much of the economy raise an ominous sign: The Chinese dream of domination may remain just that.

For nearly two months now, China's residents have confined themselves to homes or workplaces for fear of catching the coronavirus. With the epidemic fading and more retail businesses reopening, they will go out and resume spending money with a vengeance, the theory goes. A shopping spree may be in store for some consumer goods, but not necessarily for a new sedan or crossover.