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By Mark Martyrossian, Director, Head of Distribution, Aubrey Capital Management, a specialist global fund manager with offices in Edinburgh and London.
We posted a couple of pieces back in January describing the bounce in Chinese consumption after the demise of zero-Covid. This data was largely confined to spending on "experiences" and other lower-ticket items. However, there are signs that bigger ticket items are also beginning to leap from the shelves.
Is this the beginning of a trend that sees the Chinese consumer come back to the fore?
Many of you will have seen BYD's recent results. One number jumped out for me - car sales in the first quarter of this year topped 551,000 (+90% yoy) seemed like a punchy number from a population just a couple of months out of zero- Covid. And this is a quarter where the removal of subsidies has led to an overall dip in sales for the car market as a whole. Although comparisons with Tesla are not particularly meaningful, Q1 2023 sales globally for Elon were 440,000.
The average sales price may be a lot lower than Tesla (USD 15,000 to 25,000) but it is still a significant amount of money and shows that the Chinese consumer is willing to spend some of the estimated USD 5tn in excess savings accumulated over the course of the Covid lock...................... To view our full article Click here
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