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China no threat to price line

  • By Paul Gover
  • Herald Sun
  • image

    "We certainly see that within three years we'll be selling in excess of 20,000 Chinese vehicles, between the two brands," says Ateco's Neville Crichton.

Chinese cars will not re-set the price line for cheap cars in Australia.

The current benchmark is the Proton S16, which will be priced from $10,990 in June, but the first Chinese imports are more likely to be priced against the Hyundai Getz in the $13,990 zone.

Baby cars from Great Wall and Chery are expected first from China, followed by Geely, and the man leading the push says he is more worried about value than a rock-bottom price.  "We're not even trying to get to $10,990. Absolutely not. We don't see Proton as a big deal, to be honest," says Neville Crichton, boss of the Great Wall and Chery importer, Ateco.

"We'd like to stay, probably, dollar-for-dollar, where Hyundai is. But with better specced cars."  Crichton plans to have a 1.4-litre Great Wall car in showrooms in July, alongside a RAV4-size SUV, with the first Chery just a month later, and he is pushing value ahead of a rock-bottom price.

"We'll have better value in the cars. We will launch with a small SUV, the same size as a RAV4, which we will put in the market under $20,000, drive-away. It will be very competitive.  "I think it's just good-value motor cars. That's exactly what we're selling - good, reliable, economic transport."

Great Wall is already underway with an SUV and ute and, despite a poor two-star ANCAP safety rating and a recall for the ute, Crichton predicts sales of around 8000 vehicles through 2010.  But he has much bigger plans when Chery and Great Wall get into gear.

"We certainly see that within three years we'll be selling in excess of 20,000 Chinese vehicles, between the two brands."  Ateco has huge experience as an independent importer, currently holding franchises from Ferrari to Citroen and Fiat, but its biggest volume success was with Kia. It took the brand to a major presence in Australia before Kia decided to buy the business back and Crichton says there is no reason he cannot do it again.

"We had a huge success with Kia, taking it to 26,000. They've had three years and they still haven't got back to that."  Crichton knows the safety concerns surrounding the Chinese cars but says his brands are moving rapidly away from their copycat roots, tweaking existing designs from western brands, and are capable of doing better than the two-star score for the Great Wall pickup.

"We would like a minimum of three stars. I think thtat's a good start.    With two airbags," he says.

Comments on this story

Displaying 3 of 9 comments

  • Nev you are naive. Any vehicle with an ANCAP rating less than 5 stars should not be allowed into Australia.

    Barry John MacDonald of Australia Posted on 16 February 2010 9:49pm
  • I will never buy a Chinese car. The Chinese do not care about safety or quality.

    Ryan Posted on 16 February 2010 4:30pm
  • Nev,what car is in your driveway.

    G Jones of George Town Posted on 16 February 2010 3:53pm
  • 3 stars safety is good enough is it Nev? WRONG

    Andrew of Sydney Posted on 16 February 2010 3:15pm
  • Reset the price line of course not they will keep the price as high as they can with a big percentage profit margin. What this country needs is a good safe and reliable quality built product with a distinctive style and not filled with new fangled gadgets. A low price not over-inflated price as is the case with all the vehicles sold in this country at the present time. If they produced a vehicle with the above criteria and in a configuration I wanted irrespective of build country and I could afford one I'd buy it

    Hylton of Canberra Posted on 16 February 2010 1:02pm
  • Just hope that Ateco lift their after sales support. as someone who found the only way to get a response from Ateco was via the French trade commissioner i wonder how the Chinese brands will fare? maybe send complaints to Tianamen square.

    Jamers Hunter of Metrford NSW Posted on 16 February 2010 12:39pm
  • I would hope not gordon. We already have enough bad drivers without the risk of dead people and zombies jumping behind the wheel

    Matt of melbourne Posted on 16 February 2010 11:45am
  • I think the biggest issue here will be public perception of the Chinese cars' built quality and safety. We've already seen how woefully under-specced Protons are in this department. Could a solution be to ensure that all cars approved for sale in Australia under the Australian Design Rules AS WELL AS obtain at least 4 stars in an ANCAP safety test? I just can't help thinking that Australia is lagging behind most of the rest of the developed countries in this respect, particularly Europe.

    Kieran of Brisbane Posted on 16 February 2010 11:37am
  • I wont be seen dead driving a Chinese car!

    Gordon Posted on 11 February 2010 4:35am
Read all 9 comments

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