• 

  Chinese potential... a recent survey revealed that 15 per cent of US new car buyers say they will consider buying their next vehicle from China and 11 per cent will consider an Indian car. Photo Gallery

The budget brands have no fear of the growing tsunami of low-cost Chinese cars.

Suzuki Australia general manager, Tony Devers, is one of several car executives who believe the Chinese still have some way to go to gain credibility among local buyers, saying they are still an unknown quality on the Australian scene. "They still have a long way to go," he says. Devers comments come as North Americans say they are warming to Chinese cars.

A survey of 30,000 new vehicle buyers by Automotive analyst firm, AutoPacific, found that 15 per cent of US new car buyers say they will consider buying their next vehicle from China and 11 per cent will consider an Indian car, without knowing specific brands or vehicles. This compares with 16 per cent who say they will consider a vehicle from Korea, which has been marketing vehicles in the US since the 1980s.

Devers believes that to succeed here the local Chinese cars will need to be at least $1500 cheaper, with comparable equipment and safety to the Japanese. "China is still an unknown," he says.

"It's a difficult job to launch a car today. It took the Japanese many years to establish here, the Koreans were quicker and I expect the Chinese to be quicker again."

Malaysian carmaker, Proton, which sells far less vehicles here than Suzuki, is confident of beating the Chinese on price. Proton Australia managing director, John Startari, says the company's new small Saga sedan is part of a wider plan to help battle the Chinese. The new well-equipped small car is expected to sell for around $12,000 when it arrives early next year.

The other Chinese challenge is from small vans and commercials. Suzuki's Devers says he is still keen to broaden Suzuki's light commercial vans from the APV but the global financial crisis has slowed progress. "It will be steady as she goes for another 18 months," he says.

Suzuki sources its 1.0-litre Alto from a state-of-the art plant in India. However, Devers says the quality of the car is as good as anything out of Japan.

Sydney based Ateco Automotive Ltd is spearheading the Chinese push. It has recently launched the Great Wall Motors workhorse utilities and is expected to follow up with a range of small cars. Already several new Chinese cars and one four-wheel-drive are going through homologation to meet Australian design rules. Ateco is also looking at Chery cars.