When the Coronavirus first hit the global news, which industry first came into mind?

Certainly not the car industry which appears to be in danger as we all know that China the place where American, European and Japanese carmakers “base” their industries. China makes more cars than any other country, and is also the world's biggest market. China makes more cars than any other country, and is also the world's biggest market.

When car plants across China shut last month for the Lunar New Year holiday, the industry was already under huge pressure: sales had been falling for two years due to the loss of tax incentives for electric cars and the slowing economy, and officials were expecting an unprecedented third year of stagnation.

Many of those plants have since been ordered to remain shut at least until next week as the Chinese government scrambles to contain the virus that first appeared in Wuhan, a major autos hub, before sweeping across the country, infecting thousands of people and killing hundreds. Automakers are bracing for even longer shutdowns and a deeper recession in global sales.

Volkswagen (VLKAF), Daimler (DDAIF), General Motors (GM), Renault (RNLSY), Honda (HMC) and Hyundai (HYMTF) are among the global carmakers who have invested heavily in China, forming partnerships with local companies and building vast factories.

Sales and production to suffer

"We assume consumers will tend to avoid purchasing cars in dealer shops until then to reduce contagion risk," analysts at S&P Global Ratings said in a report published Wednesday. The extended factory closures are expected to make it much more difficult for the industry to emerge from its recession.

According to S&P Global Ratings, the outbreak will force carmakers in China to slash production by about 15% in the first quarter. The auto industry is particularly exposed because the virus originated in one of China's "motor cities." General Motors, Nissan (NSANF), Renault, Honda and Peugeot owner PSA Group (PUGOY) all have large factories in Wuhan, which has been on lockdown since late January.

Wuhan and the rest of Hubei province account for 9% of total Chinese auto production, according to S&P Global Ratings. PSA Group told CNN Business this week that its Wuhan plant would remain closed until at least February 14, though a spokesperson added that its European operations have not yet been affected by any parts or logistical disruptions.

Volkswagen is most exposed to potential damage. The world's largest automaker has 24 plants making cars or parts in China, accounting for 40% of its production.

Toyota, which makes 15% of its cars in China but is less exposed than Japanese rival Honda, is also worried.