Ateco will lose its Korean moneyspinner when Kia itself takes over Australian distribution of its vehicles from March 1, next year.
At the launch of the new Rio in Sydney this week, Ateco executives were open about their pursuit of a Chinese marque to replace Kia.
Managing director of Ateco's Kia Automotive Australia, Ric Hull will head the Chinese car franchise here, with an announcement expected to be made early next year. Mr Hull will join other Ateco executives at next month's Frankfurt motor show, where for the first time five Chinese car-makers will be represented.
"We're actively looking for other volume brands to replace Kia, including Chinese brands," Ateco spokesman Edward Rowe said at the launch of the new Rio.
Mr Rowe said negotiations were at "a very early stage", and that cars representing its new franchise would not be here as early as next year's Melbourne motor show.
He said Ateco executives has visited car-makers in China and were impressed by what they saw. He described facilities at those car-makers as "state of the art". "They really do have world's best practice factories," he said.