June 20, 2025

 

(CHINA’S PUSH TO DOMINATE AUSTRALIA’S ROADS)

 

June 20, 2025

 

Hello everyone

 

In Australia, Chinese vehicles are on the same path as vehicles from Korea and Japan, which dominated on Australian roads during the 1980s and 2000s.

Chinese brands represent the fastest-growing models in the automotive industry, accounting for 15 per cent of sales.

Federal Chamber of Automotive Industries (FCAI) May sales data show Great Wall Motors (FWM) is now the sixth best-selling brand in Australia, followed by MG in seventh, while BYD has climbed to 12^th.

The Australian market has always appreciated value for money in new car motoring – and that’s why these Chinese vehicles are hitting the mark, as they offer strong perceived quality at affordable purchase prices with low running costs.

The growth of Chinese brands can be linked to global oversupply, price wars, and trade restrictions in larger markets like the United States and Europe.

Data from car sales shows that Chinese-made vehicles are gaining traction, and not just for their price, but rather for the value they offer.

Many deliver better quality and technology than their competitors, often at a more affordable price point.

While some Australians are still hesitant about buying a Chinese vehicle, many buyers are increasingly recognising the appeal of these vehicles beyond just cost.

For example, BYD’s cars come with large infotainment screens, luxury features, and advanced technology.

 

 

The BYD Shark 6 has already reached 6000 sales this year.

Long warranties, cutting-edge tech, and modern designs have been big selling points.

BYD’s head designer is ex-Audi, so we can see that Chinese brands are good at poaching the best talent around.

More than 20 Chinese car brands are expected to be available in Australia by 2026.  Denza, JAC, Deepal, and Skywall are just a few of the Chinese brands that Australia will see on our roads in the future years.

Move over,r Korea and Japan, China is making its presence felt in the Australian car market.  A new era of competition has begun.

 

Israel/Iran conflict

Publicly, Trump has said that he will take two weeks to decide what his next move will be regarding the conflict in the Middle East.  As we know with Mr Trump, inside those two weeks, there is the potential for him to decide on a strategy and act without much notice. However, it is certain, he is weighing up the cost of entering another war in the Middle East, and the overall repercussions for the U.S.

So, we wait.

This uncertainty/ ambiguity is delivering bewilderment for everyone – the Netanyahu government, Iranian leadership, allies, and financial markets.   

So, we wait and ponder the implications of possible strategic moves.

There is a big push to deliver a diplomatic resolution to the conflict.   G7 countries have urged for a broader de-escalation of hostilities in the Middle East, including a ceasefire in Gaza. 

So, we wait for the outcome of talks.

Trump is facing huge political risks.  The U.S. was engaged in Iraq for nearly nine years.  And let’s remember his election win was largely based on the theme of putting “America First” and rejecting “endless conflict.”

 

Amazon (AMZN)

Analysts are eyeing off Amazon as a safe pick in a volatile market. 

Jeff Kilbury of KKM Financial points out that Amazon is a “smart buy even in a volatile market and credits its year-to-date decline to profit taking.”

Kilbury notes that their custom chips and their approach to AWS (Amazon Web Services) is “exciting”.  According to FactSet, Amazon trades at just below 32 times forward earnings.  On Jan. 28, it traded at nearly 38-time forward earnings.

 

SOMETHING TO THINK ABOUT

 

 

 

Cheers

Jacquie