Aussies flock to Chinese new cars

The popularity of Chinese-built cars in Australia has reached new heights in defiance of the COVID-struck market, with sales more than doubling last month as MG leads a merry band of fast-growing Chinese brands including Haval, Great Wall and LDV.

Industry figures show that 3383 vehicles of Chinese origin were sold in Australia in October, up 111 per cent over the same month last year when the auto market was in much better shape than it is now.

For the year to date after 10 months of tough trading, Chinese car sales in Australia are up 51.8 per cent to 22,292 units and are now closing in on the United States (28,480) and a top-five position behind the dominant Japan, Thailand, Korea and Germany.

This compares to an overall market downturn of 18.8 per cent, although there are strong signs of recovery after a solid performance across the board last month and with Victoria’s opening up of retail and its easing of restrictions.

There is no evidence that current trade tensions between Australia and China are impacting sales as new product offerings continue to reach the market and win favour with a combination of affordability and improvements in key areas such as design, safety, quality and technology.

These are also being backed up by extended warranties – up to seven years in some cases.

MG leads the way with more than half of all Chinese car sales to its name this year – 11,308 – which represents a 67.8 per cent increase over the same period last year.

Last month alone it posted 1680 sales, marking a 119.6 per cent increase and placing it 14th in the market, only about 600 units away from the top 10 brands.

This is a pretty remarkable result when you consider that MG only has three models in its stable – the MG ZS small SUV, which has just added a new ZST turbo variant and has an EV about to launch; the MG HS mid-size SUV, which arrived late last year and is a 2020 carsales Car of the Year contender; and the MG3 city car, which stands as the most popular Chinese car in Australia bar none.

The MG3 is also the top-selling light car in Australia this year, with 20 per cent segment share and 5819 sales to its name, up 78.2 per cent.

Among the other Chinese brands, ute and van specialist LDV posted 1117 sales last month – a 123 per cent rise – to take its year-to-date total to 6566 sales (+22 per cent), with further growth expected now that the all-new LDV Deliver 9 van is entering showrooms.

SUV brand Haval is also making its move, its 291 sales last month representing a 47.7 per cent increase over October last year and taking its YTD total to 2500 (+84.1 per cent) – more than big-name brands such as Peugeot, Citroen and MINI.

Haval’s sister brand Great Wall has sold 1485 vehicles this year (+26.1 per cent) and will be anticipating a strong surge with the all-new GWM Ute about to launch.