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What's next for JAC in Australia? Returning Chinese brand to launch SUV, electric cars and plug-in hybrids eventually, but is it trying to compete with GWM and LDV or Ford and Isuzu?

JAC Motors relaunched in Australia this week with the big T9 ute.

Australians are no longer resistant to the idea of buying Chinese cars, because they are instead focussed on value for money, according to Danny Lenartic, Deputy Managing Director of JAC Motors Australia.

Lenartic says this will allow the returning brand to expand well beyond the new, diesel-powered T9 Ute it has just launched, into SUVs, PHEVs and even passenger cars as it seeks to become a mainstream player Down Under.

Speaking at the launch of the JAC T9 Ute in Sydney, Lenartic said he was keen to focus on the T9, and the fact that the brand itself was relaunching in Australia after a failed attempt a decade ago, rather than discussing future product.

However, David Zhang, the Vice General Manager of JAC Group, in town from China for the event, confirmed that a plug-in hybrid version of the big, and aggressively priced 4x4 ute (starting from $42,662 plus on-road costs) would arrive in Australia early next year.

“We are developing the PHEV in China now and next year we will launch it to give us a more environmentally friendly line-up,” Zhang said.

“For the global market we have the 4x4 and the 4x2, and a manual gearbox, as well as the pure-electric version and the PHEV. But for the Australian market, for the initial stage, it’s important to focus on the 4x4 automatic firstly, and then the PHEV.

“The ute is the best-selling vehicle to get the image at the beginning, and then, step by step, we will expand our offering.”

JAC is relaunching in Australia after a failed attempt a decade ago.

Based on images shown in the product presentation, that means a JAC SUV, based on the same platform as the ute, will be making its way to Australia very soon.

“We have passenger cars, too, but for the Australian market, for right-hand drive, it’s different from other countries, so firstly we will focus on the diesel and the PHEV, but at the same time we have noticed there is a very good potential for the SUV,” Zhang added.

“I think PHEV is a good choice for this market, because Australia is big.”

Despite pointing out that he wasn’t at JAC last time it entered the Australian market, briefly, a decade ago, Lenartic pointed out that it was a very different time.

A plug-in hybrid version of the big, and aggressively priced 4x4 ute would arrive in Australia early next year.

“Back then, people barely considered ... anything other than a Holden or a Ford, so I think that’s why they had challenges then, but today is a different dynamic,” Lenartic explained.

“I think consumers just look at the value (rather than whether it’s made in China), they look at the features and they make a decision, and they make the right decision because they’re good products.

“And because so many other Chinese companies have now paved the way, I think origin is no longer important. That bias is absolutely disappearing, you only have to look at the volume. There’s a Chinese manufacturer in the top 10 in Australia now, and they got there in no time, so I think that answers that question.

“And that’s paved the way for others. If you look at other brands manufacturing in China now, and importing those cars here, that number is a significant volume.”

The new T9 diesel offering produces 202g of CO2 per km.

Lenartic also doesn’t see JAC as competing only with other Chinese brands, when asked who his competitors would be in this market, he replied confidently: “All of them.

“I don’t look at other brands, there’s nothing I can do about them so I don’t focus on them.”

“My background is in marketing and It’s not about demographics or an age, it’s about feeling and psychographics. Realistically, it’s the psychographics around a price point; if it’s sub-50 grand it’s about, ‘What can I get for my money?’, so that’s what we focus on.”

With plenty of EVs in the pipeline from JAC and the challenges of changes to emission laws in Australia (the new T9 diesel offering produces 202g of CO2 per km, so just above the 200g limit where penalties are likely to kick in, a point at which Lenartic says he is confident will work for JAC), does he think we’ll move away from our love affair with utes?

A JAC SUV, based on the same platform as the ute, will be making its way to Australia very soon.

“No, I really think electric utes will be a big part of the mix,” Lenartic said.

“I see value in them, I see a guy with a Jim’s Mowing business, he’s doing his 150 to 200km a day for work, then he goes home and charges his ute, then he mows the lawns with electric mowers and blowers, and they’re all being charged through V2L, though the car.

“I think there’s an EV ute market there that’s ready to be uncovered."

Asked about his projection for sales volume, Lenartic was cautious rather than bullish, responding that “the market will decide”.

The T9 will go on sale via a dealer network with more than 50 outlets, all up and down the east coast of Australia and covering every state and territory except the NT.

“We’ve priced the T9 in a very aggressive position, given how much technology is in it and what it offers, and what’s pleasing is the number of dealers who’ve looked at the vehicle and engaged with the brand,” Lenartic added.

“Given the dealer acceptance, I would assume the customer acceptance will be the same.”

Nigel Wright, OEM Leader for JAC, added that he had been “blown away by the enthusiasm of dealers” wanting to get involved and that the T9 would go on sale via a dealer network with more than 50 outlets, all up and down the east coast of Australia and covering every state and territory except the NT.

“And we will be opening more dealers inland, because that’s where the competition will be won, in rural areas , where the penetration of utes is profound, so that’s a very strong focus for us,” Wright added.

Stephen Corby
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Stephen Corby stumbled into writing about cars after being knocked off the motorcycle he’d been writing about by a mob of angry and malicious kangaroos. Or that’s what he says,...
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