Bloomberg has called the Chinese love of luxury the salvation of the European economy. In particular, demand from the country with the largest population in the world will help revitalize the automotive industry EU and a separate luxury segment.
The countries of Eastern Europe, whose authorities were previously worried about excessive dependence on the assembly of foreign cars, received confirmation that this could become a driver of growth for the entire national economy.
With public institutions closing in the Czech Republic and Slovakia due to the spread of the coronavirus, car factories continue to operate, releasing models such as the Porsche Cayenne and Jaguar. Most of them are exported to Asia and, in particular, to China.
At the same time, sales growth in China gives hope for further improvement in performance, which will allow the European economy to at least partially cope with the negative consequences of widespread restrictions.
In addition, the Czech Republic and Slovakia are playing into the hands of problems in Western European countries. Due to the closure of factories in the region, their products are in increased demand, and new orders allow to compensate for the drop in production due to the gradual transition of the EU to electric vehicles.