Anti-Chinese sentiment ‘just noise’

As Chinese auto brands like MG and GWM continue to climb the sales charts in Australia with cut-price SUVs and utes, some are calling for Aussies to boycott Chinese products – including cars.

That’s because of a political rift between the Australian and Chinese governments that has seen China employ significant trade sanctions on many Aussie products, including beef, coal and lobsters.

“With the tariffs the Chinese government have imposed on Australian goods the best things Australians can do is boycott this rubbish product!!!” wrote Craig Muller on the carsales Facebook page in response to our story about the GWM X Cannon pick-up.

This anti-Chinese sentiment does not appear to be having an impact on the popularity of imported Chinese cars Down Under, where the two main players from China – MG and GWM – are achieving record sales growth.

In response to questions around criticism of Chinese imports, GWM Australia marketing boss and former Mazda Australia exec Steve Maciver told carsales: “The most effective way to change customer sentiment is through quality product and that’s what we’re focussed on.

“Any other narrative, anything else going on in the world today, we can’t control. I can’t control it, my team can’t control it.

“We’ve got to focus on putting our best foot forward, and our best foot forward is the product. And that’s what we continue to do. The rest of the stuff to be honest is just noise.”

Changes in the brand landscape, a shortage of new vehicle stock and more expensive used cars due to ‘COVID tax’ have all contributed to creating an environment for new budget brands to grow, and sales of Chinese cars are flourishing.

While GWM is China’s largest maker of SUVs and light trucks, MG is now owned by the giant state-owned SAIC Motor conglomerate, which has been building MGs in China since 2007.

Backed by the marketing slogan ‘Value since 1924’, MG Australia broke into the monthly list of top 10 automotive brands in Australia for the first time in February and has remained thereabouts ever since. Its old but cheap MG3 hatch has long been Australia’s most popular light car, but MG’s expanding SUV line-up is also garnering support from a range of Aussie buyers.

The MG GS mid-size SUV was replaced by the new HS within just three years in late 2020, and the MG ZS has overtaken the Hyundai Kona – carsales’ Best Small SUV for 2021 – to become Australia’s most popular small SUV.

MG has a range of new models coming – including the Toyota Corolla-rivalling MG5 hatch, the Cyberster roadster and the Marvel R electric performance SUV – but, like GWM, is focussed on products rather than politics.

“MG considers itself to be a global brand in a global market. In Australia, MG continues to go from strength to strength, thanks to strong product offerings at the right price points,” said an MG Australia spokesman.

“When it comes to that conversation around the kitchen table about a new car – whether it’s a new driver looking at an affordable hatchback, a young family buying their first SUV or a couple considering their first EV – it comes down to value, safety and style, not necessarily where the vehicle was made.

“With more than 80 dealers across Australia and New Zealand, a strong head office presence in both countries and regional offices in key Australian capital cities, MG is proud to be an integral part of Australian society.”

GWM Australia, which currently sells three Haval SUVs and the GWM Ute, is planning an aggressive portfolio expansion too, via the Haval Big Dog, a pair of Tank off-road SUVs and potentially a trio of Ora budget EVs.

In the past, Chinese cars had questionable levels of quality and engineering, and copycat designs haven’t helped. But as the world’s most populous nation’s auto industry has matured, in part due to an influx of experienced European execs and engineers, demonstrable progress has been made in both areas

“Ultimately we’re happy with the quality and the products we’re getting out of China today. The build quality is great, the fit and finish is great,” said Maciver.

“You don’t have the growth that we’ve been having without doing something right from a customer perspective. And I think that’s only going to continue to accelerate.”

As Aussie car buyers seek better-value alternatives to the traditional models from mainstream Japanese and Korean brands, Chinese vehicles are likely to continue to gain traction regardless of political tensions.

“Our job is to try and bring the best product we can to market, promote it as effectively as we can and ultimately allow our dealers the opportunity to make the sale. And if we keep doing that we’ll keep seeing growth,” said Maciver.

“We’ll let customers make their mind up and ultimately they can decide.”