Mazda dismisses Chinese car invasion

The boss of Mazda Australia has dismissed the looming threat of a wave of low-cost Chinese cars.

About half-a-dozen cheap Chinese hatchbacks and sedans are due in Australian showrooms over the next six to 12 months, but Doug Dickson, the managing director of Mazda Australia, says it will not likely affect his brand.

"We don't aim the Mazda2 in the basic entry level market," he said. "We are not the cheapest in the marketplace."

He said Chinese car makers were initially focused on sales in China rather than exports.

"In the main Chinese brands ... are still not at the stage where they can comfortably go out into the market place and establish brands overseas," he said.

"They are mainly concerned with supply of their own local market.

"I think China is still some years away from realistically and aggressively and robustly moving into export markets."

He said that although a number of Chinese brands were heading our way, they would not be a threat to Mazda sales.

"I know there is certainly interest in brands moving into Australia but I think they're going to have to compete with all the other brands that are already here.

"That's already a difficult task for any established foreign brand, let alone new emerging brands."

But Dickson said he did not want to sound complacent: "Any competitor that comes into the market place we need to be concerned about. But there are spaces in which we play and there are spaces that we don't."

He later added: "I think you'll find the amount of exports are quite small compared to the number of cars sold locally.

"That's not to say that down the track it won't be an issue. I'm sure they have expansion plans but right now that's not the case. It's still some years away."

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