Chery E5 Reviews

…and competent budget cars rolling out of Australian showrooms.Cheap in 2011 no longer means tin-can terrible; from $11,790 for the Suzuki Alto to $12,990 for Nissan's Micra there's the choice of five, five-door hatchbacks safer, better-equipped and better-built than ever.Ten years ago the cheapest cars on the local market were the likes of the three-door Hyundai Excel at $13,990 and the Daewoo Lanos at $13,000.Since then average Australian income has jumped 21 per cent in real terms according to the ACTU even though petrol's gone from 80 cents a litre to $1.40 and more.But car prices have fallen in real terms, thanks to increased competition, a strong dollar and new brands headed this way from China.Technology, trickling down from higher-priced machines or, like stability control, mandated by authorities has made these budget cars more attractive than ever.Malaysian maker Proton were among the first to slice retail prices in the face of a feared onslaught from China, dropping the $11,990 S16 sedan into the light car battle market last November.Now Suzuki has taken the lead on pricing. (And Proton, with stock tight while waiting for a replacement, perhaps cheaper, model later this year couldn't make it to this comparison with an S16.)Their rivals are all finding new homes. While the overall car market is sluggish, down 5.3 per cent on last year, light cars have slipped only 1.4 per cent. Some 55,000 light cars were sold to the end of May, the second biggest segment after small cars and ahead of compact SUV sales figures.Suzuki Australia's general manager Tony Devers says the light car segment has grown dramatically over the past five years as Australians become more urbanised, more inner-city focussed.For Suzuki, light car buyers are split into two camps - over-45s looking for a second car and under-25s looking for university and city transport."What's the alternative - a four or five year old car with less fuel effciency and safety?" Devers says.VALUEYou get a surprising amount of kit in a cheap car these days: electric mirrors (in all but the Alto), airconditioning, plenty of safety equipment, electric windows (front only, but all four in the Chery) and quality sound systems.There is only $1200 between the cheapest and the dearest and the resale values are pretty close, too.Vehicle sizes are also much the same as is power. You would have to be Mark Webber to pick the difference between the least powerful (Alto 50kW) and the most powerful (Chery 62kW).The Micra wins on features with Bluetooth, USB input and steering wheel audio controls, but it is also the most expensive.The Alto is cheapest, but doesn't miss out on too many creature comforts except electric mirrors. And for an extra $700 the GLX has fog lights and alloys.TECHNOLOGYThe four cheapies we tested come with the new age of downsized engine. In the Micra and Alto, they are three-cylinder powerplants. The three-cylinder models were a little rough at idle, but so economical they mark the way of the future for city cars. In real world conditions, it was difficult to pick any power differences."It's surprising they are three-cylinder cars," says guest tester William Churchill. "They're pretty zippy for a three." On a low-tech note, it is difficult to distinguish the lock and unlock buttons on the Alto and Chery key fobs, while the Micra adds a car locator button that blows the horn.DESIGNThe Micra looks the most grown up and least quirky, having lost its bug eyes in the latest restyle. It also sits the nicest on its wheels, with marginal gaps in the wheel arches.One of our guest test-drivers, Amy Spencer, says she liked the slightly SUV look of the Chery. It also has smart alloy wheels and an instantly appealing interior.The Chinese have tried hard to funk up the cabin space, even if the seats lack support and some of the fit and finish isn't the best. Alto and Barina look similar on the exterior. Inside, both have comfortable and supportive seats, but the Holden trip computer is a bit too fussy and busy for easy reading.Cabin dimensions are similar across the four, although the Micra has best back seat legroom and the most luggage capacity, while the Alto's boot is tiny.The Chery also scored points with Spencer for its handy dashboard storage compartment.She and fellow volunteer test driver Penny Langfield also noted the importance of vanity mirrors on the visors. The Micra and Barina have two vanity mirrors, while the Chery has one on the passenger's side and Alto has one on the driver's side.SAFETYLangfield commented that safety is one of the most important aspects to consider."That is the thing you worry about the most with a small car," she says.But cheap doesn't mean they have scrimped on safety features. All have electronic stability control, ABS and electronic brakeforce distribution.The Chery has only dual front airbags, but the rest come with six airbags.According to the Australian New Car Assessment Program, the Chery has a three-star crash rating, Barina and Alto four stars and the Micra has not yet been tested, but the previous model with only dual front airbags had a three-star rating.DRIVINGWe took our three young volunteer drivers on a short city-based drive with plenty of hills and some freeway cruising. The Chery suffered a little from being straight out of the box with only about 150km on the odo and most of that on test.It may still be bedding in the brakes, but they felt mushy until they warmed up. Then they got a bit firmer, but still lacked initial bite and feel.The Chery's airconditioning also has a ringing sound in the fan which may go away after a while.We also noticed it revved a bit when you pushed in the clutch, indicating perhaps a slightly sticky throttle while still new.Yet the Chery drew favourable comments from all quarters for its responsive and "zippy" engine. However, Langfield noted it was "a bit sluggish coming up the hill"."I've heard all the hype about this being the cheapest car, but it goes better than I thought it would," she says. Spencer was rapt with the sound system: "It's great when you ramp it up."However, she instantly fell in love with the Micra."I liked this car from when I reversed it out of the carpark. It's quite zippy. I love the big mirrors. I like how the dashboard gives it a bit of space. It's not cramped up."She also liked the fact the seat height adjustment in the Micra and Suzuki: "It's great for short people."Churchill says the Micra's instruments are easy to read and found the audio controls on the steering wheel convenient."Smooth" was the word for Langfield to described the power, gearshift and ride."It's got a good audio system. The radio is nice and high," she says as she pumps up the volume on Triple J. She also likes the ample cup holders.The Barina is a no-fuss, solid and strong city car. "It's simple to drive but the LCD screen on the instrument panel is a bit distracting and very busy," says Churchill. Langfield agrees, but says, "I'm sure you would get used to it after a while."She liked the "smooth gear action" but found it "a bit gutless in places, but it picks up when you need it".The Suzuki surprised us all with its plucky three-cylinder engine. "It takes off when you want it to. It feels more intuitive and responsive," says Langfield.But Spencer laments the lack of boot space. "There'll be no camping weekends with this boot."Churchill says the gearshift was easy and the clutch feels light. "It's the most simple to get in and just drive."VERDICTThe Chery is the real surprise. It's better than we thought and attracted some good comments for styling, audio and power.The Barina feels safe, strong and reliable, while the Micra feels the most refined, although the most expensive. But we have to agree with the punters.While we found good and different points across the four we appreciate the Suzuki's willingness and price point as the leader of this pack.Last word goes to Langfield: "All these cars are better than my car so I really can't complain."VOTINGPenny Langfield: 1 Alto, 2 Micra, 3 Barina, 4 Chery. "It just feels good to drive. You feel like you are driving a real car, not a toy".Amy Spencer: 1 Micra, 2 Alto, 3 Barina, 4 Chery. "An all-round good car. It has a bit of storage space and just looks and feels good to drive."William Churchill: 1 Alto, 2 Barina, 3 Chery, 4 Micra. "I can get in and didn't need to get used to driving it. The dashboard is also easy to use."SUZUKI ALTO GLPrice: $11,790Body: 5-door hatchbackEngine: 1 litre, 3-cylinder 50kW/90NmTransmission: 5-speed manual (4-speed auto option)Fuel: 4.7l/100km; CO2 110g/kmDimensions: 3500mm (L), 1600mm (W), 1470mm (H), 2360mm (WB)Safety: 6 airbags, ESP, ABS, EBDWarranty: 3-year/100,000kmResale: 50.9%Green rating: 5 starsFeatures: 14-inch steel wheels, A/C, aux input, full-size steel spare, front power windowsBARINA SPARK CDPrice: $12,490Body: 5-door hatchbackEngine: 1.2 litre, 4-cylinder 59kW/107NmTransmission: 5-speed manualFuel: 5.6l/100km; CO2 128g/kmDimensions: 3593mm (L), 1597mm (W), 1522mm (H), 2375mm (WB)Safety: 6 airbags, ESC, ABS, TCSWarranty: 3 year/100,000kmResale: 52.8%Green rating: 5 starsFeatures: 14-inch alloy wheels, front power windows, A/C, USB & Aux audio input, auto headlights off, optional full-size spareCHERY J1Price: $11,990Body: 5-door hatchbackEngine: 1.3 litre, 4-cylinder 62kW/122NmTransmission: 5-speed manualFuel: 6.7l/100km; CO2 159g/kmDimensions: 3700mm (L), 1578 (W), 1564 (H), 2390 (WB)Safety: ABS, EBD, ESP, dual front airbagsWarranty: 3 yr/100,000kmResale: 49.2%Green rating: 4 starsFeatures: 14-inch alloys, full-size steel spare, A/C, 4 power windows and mirrorsNISSAN MICRA STPrice: $12,990Body: 5-door hatchbackEngine: 1.2 litre, 3-cylinder 56Kw/100nmTransmission: 5-speed manual (four-speed auto option)Fuel: 5.9l/100km; CO2 138g/kmDimensions: 3780mm (L,) 1665mm (W), 1525mm (H), 2435mm (WB)Safety: 6 airbags, ESP, ABS, EBDWarranty: 3 year/100,000km, 3-year 24-hr roadside assistResale: 50.8%Green rating: 5 starsFeatures: Bluetooth, A/C, 14-inch steel wheels, full-size steel spare, aux in, front power windowsPROTON S16 GPrice: $11,990Body: 4-door sedanEngine: 1.6 litre, 4-cylinder 82kW/148NmTransmission: 5-speed manualFuel: 6.3l/100km; CO2 148g/kmDimensions: 4257mm (L) 1680mm (W) 1502mm (H), 2465mm (WB)Safety: Driver's airbag, ESC,Warranty: three year, unlimited km, 24-hour roadside assistResale: 50.9%Green rating: 4 starsFeatures: 13-inch steel wheels, full-size steel spare, A/C, remote central locking, front power windowsUSED CAR OPTIONSTHERE are a number of options to an all-new light car if shopping for something secondhand and sensible.Among these, Glass' Guide lists manual versions of Honda's 2003 Civic Vi five-door hatchback at $12,200, the 2005 Toyota Corolla Ascent sedan at $12,990 and Mazda's 2004 Mazda 3 Neo (sedan or hatch) at $12,400.The Civic impressed at the time with good interior space and comfort, reliable reputation and a long list of gear including dual airbags, ABS plus power windows and mirrors.The Mazda3 range was an instant hit with critics and consumers, bringing style back to the marque. The Neo's standard gear included air-conditioning, dual airbags, CD player plus remote central locking. Toyota's Corolla has long been a safe and solid performer in the small to compact class; 2005 versions arrived with dual airbags, air conditioning, ABS and proven reliability.

The Australasian New Car Assessment Program (ANCAP) crash test of the $10,990 driveaway Chery J1 resulted in a three-star rating for the Chinese-built hatchback. It reports the car "lost structural integrity in the frontal offset crash test at 64km/h, which would result in considerable injury risk for the occupants". There was also "poor protection from serious chest injuries for the driver in both the frontal offset and side impact crash tests". Chery spokesman Daniel Cotterill says the high point for importer Ateco Automotive was that Chery sent engineers from China to watch the tests. "They sent senior crash-test people here from China for the testing. They had a good dialogue with the ANCAP people," he says. Cotterill says the J1 is sold with more safety gear in Australia than in any other market. "It's never been the case with any of our Chinese offerings that there has been a box to tick for extra safety gear that we've left off," he says. "If they can do it we take it. I reckon that we'll see some improvements via running changes to current cars, now they've seen it first hand that will have an effect on the way they go about designing future models." ANCAP chairman Lauchlan McIntosh says there were concerns over the lack of side airbags and stability control, which are featured in key competitors, including the Holden Barina Spark, the Mazda2 and some Hyundai Getz models. "These life-saving features are available on competing models from other manufacturers many of which have a five-star ANCAP rating. ANCAP was pleased that engineers from Chery travelled to Australia to attend the crash tests and discuss how to improve their products with ANCAP technical staff," he says. Toyota got an upgrade from four to five stars without smashing a car into any obstacle. The Camry range has been upgraded to five stars (a rating already applied to the locally built Aurion) with the introduction of a seat belt reminder and improved knee protection for front passengers, standard in cars produced from this month. McIntosh says Toyota's upgrades were worthwhile safety features and would meet new government fleet regulations. Such purchases account for a large percentage of Camry sales. "A seat belt reminder device for the front passenger seat and more crash protection for the driver's knees have been made just weeks before the Australian government introduces a mandatory five-star safety standard for all federal fleet passenger car purchases from July 1." He says about one in five road crash fatalities in Australia are caused by failure to wear seat belts. "Under ANCAP's recently released Roadmap, seat belt reminders will become mandatory for front seats for a five-star rating from 2013." He says the new rule which affected around half of the new vehicle market also would lead to improved safety standards and features in private vehicles. "Commonwealth fleet vehicles are commonly sold into the private vehicle market within two or three years," he says. "The sales of these vehicles will allow Australian families another avenue via which they can purchase five-star vehicles."

One Carsguide reader attacks it as a "s-box" and says China's first passenger car should never have been cleared for take-off in Australia. Another, with experience importing Chinese goods and dealing with Chinese companies, says there will be rapid improvements to the J1 and these will be passed down to the cars that follow. Some people are surprised that Carsguide does not launch an all-out attack on the car's failings, while others are shocked at the depth of the complaints about the car's quality and performance. So the J1 has definitely made an early impact. We've also seen the first improvement, although it's only been made on paper. Ateco Automotive says during our exclusive first drive of the J1 that Chery's baby makes 245 grams of CO2 for every kilometre it travels. This is not good, either for a 1.3-litre engine, or at a time when carbon and carbon pollution is becoming a major topic of discussion and argument in Australia. Ateco went back to Chery and now has an updated, and correct, CO2 emission of 159 grams-per-kilometre. It's better but still not a breakthrough to rival the work being done by European brands, including Benz and BMW, on the CO2 emissions from their engines. There was a time when the most important numbers at any press preview of a new model were the top speed and 0-100km/h sprint time. These days the focus is on the fuel economy and the CO2 number. This week BMW has the all-new X3 and trumpets a CO2 number of 147 grams/kilometre for the 2-litre turbodiesel model. Yes, that trumps the Chery J1 and the X3 is a five-seater prestige SUV with all the bells and whistles. The X3 result is the sort of thing we can expect in coming years, and is reflected in the latest official CO2 numbers from the Federal Chamber of Automotive Industries. The lobby body for the motor industry says the average CO2 number for the new-car fleet in Australia during 2010 is 212.6grams/kilometre, a 2.7 reduction from the 2009 figure of 218.6. The figure includes all passenger cars, SUVs, and light-commercial utes, vans and buses up to 3.5 tonnes. "The result is a combination of improvements in vehicle technology and a change in consumer buying preferences," says FCAI chief executive, Andrew McKellar. The number is proof that carmakers are taking pollution seriously, at a time when debate of a carbon tax in Australia is heating up fast. But there is more to CO2, as the FCAI is also lobbying the Federal government strongly on other uses for the pollution numbers. It wants to see taxation and support based on CO2, perhaps even with the hated Luxury Car Tax - something that's incredibly unpopular with people shopping in the $60,000-plus price bracket, particularly as Australia has no luxury tax on planes, helicopters or boats - being based on the grams-per-kilometre CO2 emissions of the upmarket cars in Australian showrooms.

The Chery J1 hatch hits the road this week, priced from $11,990 driveaway at 50 dealerships across Australia, and is already being tweaked and improved. The gearbox is being updated and the Chery importer, Ateco Automotive, promises improvements to quality and final finishing in the cabin.The J1 is being sold alongside the J11 SUV as Chery joins Great Wall on local roads, with Geely to follow soon in Western Australia and the Foton brand also looking for a foothold. Ateco chief, Ric Hull, says his company is mounting a major push with Chery to answer complaints already raised about the J1 - including a test drive report by Carsguide - following the arrival of the first cars in Australia.The biggest change is to the gearing, to give the J1 more pep from a standing start. "They are going to fit a different final drive ratio that will give it better hill climbing ability. We might sacrifice a bit of fuel economy but we felt it was a necessary change," Hull says."The cars will go up hills, and they are probably not dramatically worse than some other vehicles, but we were not satisifed it was as good as it needed to be." Hull also says trim improvements in the cabin - also identified as a shortcoming by Carsguide - are also being reported back to China for changes."We've had factory people here. We have shown them. Our technical people have gone back to their technical people with everything that's been raised," Hull says. "If our experience with our other Chinese suppliers is any guide, they will react and react very quickly."Hull says Ateco and Chery are keen to update the cars as quickly as possible. "We weren't aware there was a problem until we got them here," he says. Ateco is also the Great Wall importer and has been successful in driving improvements to the brand, particularly to quality after a poor initial result during impartial NCAP crash testing.Hull says the first shipment of around 700 Chery vehicles is being delivered to dealers, with around 600 J11s in the pack and only about 100 J1s. He is not concerned by any problems with the SUV. "I am sure there are one or two things that the guys have unearthed now that we have stock. But it's nothing of any particular consequence.They have built a lot of J11s and I think they have got most things right." Chery has been established as a stand-alone brand for Australia, and not just twinned with Great Wall. "So far it has worked well for both brands to keep them separate. There are one or two exceptions, but the rule is that Chery dealers are separate to Great Wall dealers. When we get into the small rural areas there might not be a choice."Hull says Ateco is not intending to add any other Chinese brands to its lineup, which runs from Ferrari and Maserati to Fiat, Alfa Romeo and Citroen. It is also expected to be confirmed this year as Australia's agent for Lotus sports cars."Not actively. We've talked to a lot of people over the years and I guess will continue to talk, but nothing is about to break," he says. Apart from Great Wall and Chery, Foton - a bus specialist in China - has appointed the Western Star truck company as its local agent and Geely is being handled by the John Hughes group in Perth.There is also Lifan, Chinese biggest motorcycle manufacturer, although it has yet to finalise its plans. "We're not sure what they are doing. A gentleman from South Africa had the import rights ... but nothing has been heard for quite some time," says Hull.

The price is right on the Chery J1. The first Chinese passenger car to hit the road in Australia always had to be cheap to make an impact, and the bottom line is just $11,990 - on the road. The value is unquestionable, the J1 is the new Australian price leader, and the deal includes 24-7 roadside assistance for the

The first Chinese passenger cars headed for Australia are surprisingly normal.  Three models from the Chery brand do not look or drive like third-world clunkers and, with a value-added approach, they promise a better deal than the Koreans that currently dominate in the bargain basement.Chery is partnered with Ateco Automotive, Australia's largest independent importer with a portfolio from Great Wall of China to Ferrari of Italy, and the two companies are aiming to have cars on the road by the third quarter of this year.The J1 baby hatch will come first in partnership with the J11 front-drive SUV, which looks a lot like the Toyota RAV4, with the Corolla-sized J3 to come in 2011.  No-one at Ateco or Chery is talking prices, but the J1 should be less than $13,000 driveaway - it is pitched against the Hyundai Getz in Australia - with the J11 at less than $20,000.The cars have been created by China's largest local maker, as opposed to joint-venture brands, and the company with the biggest exports. Chery is aiming for production of one million cars this year and intends to send 100,000 overseas.  "Chery car, in terms of the quality and after sales service and all this, will be no different to our competitiros, This is our target," says Biren Zhou, vice-president of Chery Automobile.Chery is mostly state-owned by the government in WuHu and the local province, and has been in the car business since 1997. It's cumulative production is more than two million vehicles and it has a range of more than 20 models, from 800cc microcars to HiAce-sized vans.The big hurdle for Australia is safety - Chery trumpets the first four-star car in China NCAP tests - and acceptance of cars from China.  But the J1 and J11 look good, they drive fairly well, and Ateco chiefs have experience with all three Korean brands - Hyundai, Daewoo and Kia - to fast-track acceptance and sales."In our perfect world we will come in below the Koreans, but with a meaningful value advantage," says Dinesh Chinnappa, special projects manager for Ateco, during a press preview in WuHu, China.DrivingThe J1 is tiny, but it looks good and gets along reasonably well with a 1.3-litre engine. It also has a funky looking dashboard design that will be good for youthful first-car buyers.  The J11 is better again, with more space and a reasonable 2-litre engine. There are quality glitches, but the cabin is way better than the first Korean cars that reached Australia.The J3 looks the most impressive, but rear vision is crimped, performance is nothing special, and there is a power-steering whine in one car and clunky steering in two cars.  These first impressions are formed during a severely limited drive at the Chery factory, but they are a positive pointer.Of course, it all comes down to prices and equipment and the crucial dealer network - Ateco is planning 40-50 agents at the start of sales - as well as the vital ANCAP crash test results.  Great Wall utes have been selling strongly despite a two-star ANCAP result but Chery must do far better to create the right first impression for Australia.

The first large-scale imports of passenger cars will begin later this year and the man leading the China drive refuses to put an upper limit on sales, or the rate at which they are likely to grow in Australia. Great Wall is already selling a low-cost utility and SUV but the floodgates will open in the final quarter of this year when the Geely and Chery brands begin sales of compact passenger cars with prices - and value - that undercuts the Korean benchmark brands."Would it be silly to say the Chinese will have 10 per cent of the market in five years? I don't think so," says Rick Hull, who heads Great Wall and Chery in Australia.  He has vast experience of low-cost imports after heading up the import action for the three biggest Korean brands - Hyundai, then Daewoo and finally Kia - during his career.Hull said it took the Korean carmakers around 10 years - with help from Ford sales of the Korean-built Ford Festiva - to top 100,000 sales a year.  He already believes the Chinese brands could do it in half that time, thanks to cheap labour rates, rapid technology improvements, growth in total vehicle sales in Australia, and the earlier example of Japanese and Korean brands."I really don't know how fast it will happen. But it has the potential to happen very quickly," Hull says, as he leads a small group of Australian journalists to Chery, Great Wall and the Beijing motor show this week.  Hull believes many more Chinese brands will eventually join the export push, with 47 major makers in the country and production capacity soaring towards 20 million vehicles a year.He is not expecting much action from the 26 joint-venture makers - Chinese companies in partnership with everyone from Volkswagen and General Motors to Volvo and Suzuki - but knows the 21 independents will be looking for growth outside their home country.  In Australia, Hull believes there will not be any sub-$10,000 pricetags but he predicts rapid growth in high-value compact cars and big, fast changes to the way Chinese cars look and feel.He says safety and quality will become a top priority much faster than they were in Korean cars, because the Chinese must compete on equal terms and win buyers with a value-added edge in showrooms.  Korean sales reached their peak in Australia at around 112,000 in 1998, just 12 years after Hyundai was established with the original Excel.Hull believes Chinese brands can hit the same 100,000-a-year benchmark in less than half that time and does not rule out China-made cars quickly overtaking Thailand - currently the biggest overseas supplier to Australia at around 220,000 a year - son after 2020. "Who really knows? Five years for the Chinese to hit 100,000? I think that could easily happen," Hull says.  "And you have to remember that the market in Australia is now profoundly bigger than it was when the Koreans did it."

The three companies with Australia in their sights - Great Wall, Chery and Geely - are all expected to unveil new value-driven compacts and SUVs at the country's biggest annual motoring event.  Great Wall is the only brand with vehicles already in local showrooms, a dual-cab ute and SUV, but Chery and Geely will both hit the road down under before the end of 2010.BYD, a technology leader for China, is also planning to reveal its first plug-in electric cars in Beijing although it currently has no plans to sell overseas.  All 47 of China's manufacturers are expected to have something new at the show, with a move away from the copycat designs of the past - everything from the Rolls-Royce Phantom to the BMW X5 was either parodied or duplicated - to unique Chinese designs."They will all show their new export cars," says Ric Hull, the Ateco Automotive executive responsible for the Great Wall and Chery brands.  Hull says the Chinese car industry is advancing so rapidly it is hard to keep tabs on the new-model action."I think everything has to be seen in the context of the market. The Chinese made and sold about 13.6 million vehicles last year, and the US was 10.4 million," he says.  "They have not only eclipsed the US, they have gone way beyond them. In good years the US is 17 million, but the Chinese are there already."In the first quarter of this year, they have sold 4.6 million vehicles. So you're now talking 18 or 20 million a year. It's just gone bezerk.  "The thing that fascinates me most is how anyone can lift production to those levels. I don't believe the Japanese could do it, or even the Koreans."Hull says Ateco is already on track with additions to the Great Wall range including a single-cab ute, with Chery to hit first with a compact SUV.  "We'll launch Chery in August. It has just been an agonizing process to get the compliance issues in place, but it will be fine."I'm hoping to launch a RAV4-kind of vehicle at a really good price.  "Great Wall are talking about a 1.5-litre car that we'll introduce before the end of the year. They are getting there and getting there awfully, awfully quickly."Hull says he is expecting rapid improvement in Chinese vehicles, with quality and safety as top priorities.  Great Wall is just about to face its second ANCAP crash-test barrier in Australia and, following the miserable two-star result for the ute, Hull is hoping for a four-star rating for the brand's SUV."We took a hammering from NCAP on the utes but Great Wall reacted and they have made a lot of changes," Hull says.  Car sales in China are so important that all the world's major makers will be displaying in Beijing.Even though many skipped last year's Tokyo Motor Show, previously the world's equal number one with Frankfurt every two years, no-one can afford to miss the biggest motoring event in China.  There were more than a dozen world previews at the last Beijing show and a lot of the action is at the upmarket end of the business in 2010.Ferrari is unveiling its new go-faster flagship, the 599 GTO, and Mercedes-Benz will reveal an update of the $1.5 million Maybach ultra- luxury limousine.

The total for Great Wall alone, with Chery and Geely to join the action around the middle of this year, will hit 8000 vehicles by the end of 2010.  So says star importer Neville Crichton, whose company Ateco has a long list of successes including a 26,000-year with Kia before the Korean company bought the farm back in Australia."In five years we'll see the Chinese with a major, major share of the Australian market," says Crichton.  "I see no reason why we can't do the same (as Kia) with the Chinese brands. We certainly see that within three years we'll be selling in excess of 20,000 Chinese vehicles, between our two brands, Great Wall and Chery."There is already a Great Wall pickup and SUV in Australia, with Chery about to open with a RAV4-sized SUV at $19,990 drive-away and a 1.4-litre car as the price leader. But Crichton says there will not be a sub-$10,000 car in the Chery family."We'd like to stay, probably, dollar-for-dollar, where Hyundai is. But with better specced cars," he says.  He also sees a surprising twist, as the Chinese brands target Japan ahead of Korea.  "I don't see the Japanese disappearing, but I think the Chinese cars will affect them more than the Koreans. Strictly on price,” Crichton says."If you walked into one of their factories, blindfolded, you would think it was Volkswagen or Audi factory. They are getting very good, very quickly.  "We've got a lot of faith in our Chinese partners."While Ateco has Great Wall and Chery - at least a first - the Geely brand will be imported by John Hughes of Perth. He plans to have three WA dealers operating around midyear, with a progressive national rollout.

Anyone who believes that China's economic boom is nearing its end is totally wrong. And Australia's deputy consol general in Shanghai, Christopher Wright, says Australians who ignore the immense trade opportunities will miss out on access to the world's biggest market. "Few people understand how quickly progress is happening here," he says. "Even this hotel," he looks around the 87th floor of the 101-storey Park Hyatt "bottle opener" Hotel, "and all the east side of the Shanghai River, barely existed a decade ago." Wright says though the economic acceleration in the past decade had been stunning, it is getting even faster. "Progress up the learning curve is getting quicker," he says. "The car industry alone is simply fantasy. Chery built its first car in 1999. It is now the biggest car maker in China with annual production of 480,000." "China will make nearly 11 million cars this year. It is working on two-year cycles with car development and model changes while the rest of the world, at best, is working on four-year cycles." Wright says now is a great time for new businesses coming into China. "OEMs (original equipment manufacturers) have been formed with joint ventures which show how desperate global manufacturers — of all products — are to get into the Chinese market," he says. "But they also want to export and must understand that the Chinese Government will only allow home-brand companies to export." Wright says car companies will be some of the first to export under their own name, rather than the name of an offshore venture partner or one selected from an English dictionary. "There will be changes to suit the offshore markets and the first thing to change will be the company names," he says. "It will be similar to the change from Lucky Gold Star to LG for the Korean electronics giant. "There have been some selective successes — white goods maker Haier and computer firm Lenovo (which bought IBM) being two — but in general the Chinese are yet to package themselves for western markets." Wright believes that China's current expansion places Australia in a prime position. "I see Australia as being a prominent target for Chinese goods," he says. "It is a small yet sophisticated and accepting market that the Chinese would target and use for experience to bounce into other Western markets." How does Australian business get a slice of the action? Wright says China's advantage isn't its low labour cost — it's the nation's economies of scale. "China can recover the cost of car — or any product — development because of volume sales," he says. "So China should always form part of an Australian company's manufacturing aims. "There really is an opportunity opening up for Australian suppliers and car makers to use the ability of China to make huge volumes to keep the unit price very low." Wright says Australia is one of only 15 countries that can make a car from pen to showroom. "That's extremely relevant to China and what's more, China wants that. "Geely (Chinese car maker) just bought Albury, NSW, transmission maker DSI and will bring it to China. Geely will use the existing technology but will also redesign it to build it for the future, so there's this constant development. That's typical of Chinese companies today." Other automotive joint ventures with Australian companies include Futuris which makes car interiors — dashboards, roof linings, seats and so on — and is heavily involved with Chery. "In addition to Geely's deal with DSI, Chery has an R&D centre in Australia and Great Wall Motors has an R&D and testing facility in Melbourne," Wright says. "China is big on research and development and a lot of major corporations — Ericsson is one — base their R&D here (Shanghai) because this is the most inventive R&D centre in the world. "Shanghai can get more PhDs than anywhere else in the world. This goes across other industries so there's a huge pool of development here." China has one of the lowest car numbers per capital in the world. It has 176 million cars for 1.3 billion population and 188 million people have a driver's licence — 80 per cent of those being first-time drivers. "There are basically three phases in China's development and I'll use the car industry as an example," Wright says. "Before 1949, for a period of about 100 years, China was always preoccupied with war and internal struggles. Phase One is from 1949 to the early 1980s when China made basic trucks, tractors and commercial vehicles that were built and designed in the Soviet style." "Phase Two started in the early 1980s and is highlighted by the start of joint ventures. These included GM, Citroen, Volkswagen and Peugeot. That ran until the late 1990s and meant the Chinese car industry was effectively tied to the global giants of the automotive industry and therefore carried the same technical cycles and suppliers and habits — good and bad. "The Third Phase came in the late 1990s and is the start of the national identity of the car industry. The next phase, according to a leading professor at the Chinese university, is the integration of global technology to strengthen the Chinese brands so they are ready for the world markets. That means a steady increase of vehicles with prices that will make you weep." Wright says there are some similarities with the development of the Australian car industry which also started — in effect — from 1949 by basing future models on the US principles of design, manufacture, operation and sales. Today the state and provincial governments have shares in most of China's 90-odd vehicle makers. Two major exceptions are Great Wall Motors and Geely and some — Great Wall is one which is listed on the Hong Kong market — are also public. Though this appears at odds with China's communist principles — though in effect is more a totalitarian regime — Wright says the system works and believes the evolution of government involvement in business will continue for some time. "They (government) don't really want to get out," he says. "After all, they make a lot of money in dividends in these companies. China is a country that since the open-door policy (1978) has had an annual growth rate average of 9 per cent." "Last month it was annualised at 7.9 per cent despite China taking a dip because of the global financial crisis. That's 9 per cent for 30 years — no matter what dips it endured such as Tiananmen Square protests of 1989, the 1988 Asian financial crisis and the 2008 crisis. All down and immediately ricocheted up." "This is a developing country. It can accept money, employment, buildings and so on, before it becomes over capitalised. There's lots of growth to go."