China to sell 100,000 cars annually in Australia within five years

Chinese cars will make massive inroads into Australia in the next few years, as they replace Korean makers in the bargain basement end of the market.

The man in charge of the first Chinese-branded vehicles to be sold in Australia, Ric Hull, says it will take the Chinese less than half the time it took the Koreans to reach the milestone of 100,000 sales in one year.

Hull ought to know. He introduced Hyundai into Australia nationally as an independent distributor in 1988, after another distributor, John Hughes, began importing Hyundais in West Australia in 1986.

It took Korean brands 12 years to reach 100,000 sales in one year and they are now among the top three sellers of cars in Australia.

According to Federal Chamber of Automotive Industries figures, so far this year 90,000 vehicles have come from Japan (up 13 per cent), 42,000 have come from Korea (up 68 per cent), 38,000 have come from Thailand (up eight per cent), while Australian-made cars accounted for 35,000 sales.

Chinese-made cars accounted for a fraction of the total new vehicle sales in Australia (1400) in the first three months of this year, but at least six new Chinese-made vehicles are due in showrooms by the end of this year.

"I don't want to put an exact figure on it but I'd be disappointed if Chinese brands don't make it to 100,000 in five years," he told the Carsales Network.

"The Australian new-car market is much bigger now than it was when the Koreans started in 1986, so it shouldn't be too much trouble (to reach 100,000) at all."

Hull said the only risk to the growth in popularity of Chinese made cars in Australia was if rogue operators began importing and selling vehicles.

"The only risk to all this is that there are so many players in China -- 21 independent brands and 26 joint ventures -- if they are badly represented they could stuff it up for everyone.

"If the cars aren't good and they don't support the dealers and the customers, that's no good for anyone."

Hull said he visited more than 30 Chinese car makers over the past five years before establishing distribution deals with Great Wall Motors and Chery.

"We treat the importation, distribution and development of the Chinese brands with the same professionalism as we do with all our other brands."

Great Wall will introduce four new models by the end of this year: a single cab ute, and a 1.5-litre engined small car.

Through Chery, Hull will introduce a compact softroader in the style of a Toyota RAV4, powered by a 2.0-litre engine and available with manual and automatic transmission, and a 1.3-litre-engined Light Car.

Meanwhile, another distributor, the same Perth-based John Hughes who brought Hyundai to Australia, is planning to introduce two Chinese Geely models by the end of this year or early next year.

Read the latest Carsales Network news and reviews on your mobile, iPhone or PDA at www.carsales.mobi