China to Sell 100,000 cars Annually In Australia Within Five Years

[DJR-351]

Originally Posted by Iggypoppin'

I have not seen one great wall at my work. 90% fords and Toyota 4wd's, few holdens, some land rovers, etc, but no horrid Chinese buckets. The tradesman don't trust them. And they'd rather drive VB wagons than great walls.

I don't know about SA but i see them all the time in QLD, plenty of tradies buying them, neighbour has two and he says the service/warranty offered beats any other vehical in the same class hands down, and that coupled with the low purchase price is why he is buying another one....

I said this in the Great Wall thread, the majority of people don't give a dam about crash test figures, all they see is the dollar figure, and that is why these sorts of cars will always find buyers....

[DJR-351]

Originally Posted by Wretched

I'm seeing these Great Wall utes around a lot lately.
They are also putting them into shopping centres so everyone can see.
They're cheap and are able to do what most people want out of such a vehicle.

I wouldn't be so quick to discount them.

Agree 100%....

[pottery beige]

Just like cheap homeless brand baked bean's at the supermarket.. Some people buy them and some people won't.......

[flappist]

The Chinese are quite capable of building good quality equipment, VW have a factory in Shanghai that exports to the world.

Great Wall utes are a copy of an older Japanese design and while many on here poo poo them they seem to be aquiring a market.

Japanese performance cars were also treated with ridicule and distain by the Australian motor racing enthusiasts until Nissan turned up at Bathurst with a GTR Skyline.......

And lets be realistic, if Great Wall suddenly turned up with a AU/BAish looking RWD high powered V8 (with LOTS of stripes) and an I6 that was compatabile with Falcon parts and accessories and retailed for $20-25k I suspect it would sell quite well to a huge segment of the Falcon market.

And if they did the same with a Commodore compatible they may actually wipe out Ford and Holden manufacturing in Australia forcing it offshore to survive.

[barra240t]

A company near us bought a Great Wall, even though we have Rangers on the yard they can see right in front of them. They are happy to pay much less for a Chinese built car with a petrol engine in it. I am sure they will expect amazing resale for it in the future as well.

[Ducati888]

Originally Posted by jpd80

I'm non-committal on Toyota as they have other Asian plants that could build
Camry and Aurion, they could pull out at a moment's notice if it suited them

GM & Ford have lots of plants around the world too. From Detroit's point of view, Australian plants must be difficult to justify, especially GM who are bankrupt and owe the US taxpayers quite a bit.

Toyota Canrys are still Australian made, and Toyota make far more units both for local consumption and export than Holden do, way more units than Ford do. If you want to support local jobs, Toyota is the biggest contributor to the local economy, it's just a pity the Camry is a butt ugly refrigerator.

I know that this sometimes turns into an "Aussie company" vs the world thing, but it needs to be remembered that there are no Aussie car companies - they are all 100% owned by overseas. I don't give a crap whether it's owned by the USA, China, Japan or India. What's important is that they manufacture here, and that's the best we can hope for.

[smally289]

Originally Posted by pottery beige

Where i work we dig up dirt and send it to China.. If China does good.. I do good........

The stuff I pull out of the ground at work goes to Japan, so there's my excuse to not buy a Great Wall vehicle.

[flappist]

Originally Posted by barra240t

A company near us bought a Great Wall, even though we have Rangers on the yard they can see right in front of them. They are happy to pay much less for a Chinese built car with a petrol engine in it. I am sure they will expect amazing resale for it in the future as well.

Yes but 66% of $42k after 2 years is $28k with a loss of $14k whereas 40% of $20k is $8k with a loss of $12k. $2k++

Interest paid on the $42k will be about double that paid on the $20k.

For years I had dozens of Falcons as work cars from XCs up to BAs. They just kept getting more and more expensive to operate.
I then went to Toyotas with an Avalon, Aurion and Yaris. The operating costs reduced significantly and when I sold the Yaris after 18 months and 30,000km I actually made a book profit and I sold it wholesale to a dealer for only $750 less than I paid for it.

Times are still tough and the GFC is still a long way from being over. Yesterday I went out to buy a Fiesta but ended up with a Hyundai, 20% cheaper, just as economical and similar resale BUT 5 year unlimited km warranty.

To a great many it is more a numbers game than an emotional decission....

[barra240t]

Originally Posted by flappist

Yes but 66% of $42k after 2 years is $28k with a loss of $14k whereas 40% of $20k is $8k with a loss of $12k. $2k++

Interest paid on the $42k will be about double that paid on the $20k.

For years I had dozens of Falcons as work cars from XCs up to BAs. They just kept getting more and more expensive to operate.
I then went to Toyotas with an Avalon, Aurion and Yaris. The operating costs reduced significantly and when I sold the Yaris after 18 months and 30,000km I actually made a book profit and I sold it wholesale to a dealer for only $750 less than I paid for it.

Times are still tough and the GFC is still a long way from being over. Yesterday I went out to buy a Fiesta but ended up with a Hyundai, 20% cheaper, just as economical and similar resale BUT 5 year unlimited km warranty.

To a great many it is more a numbers game than an emotional decission....

I don't have anything against a business wanting to save $$ by buying a cheaper vehicle, it is very rare to see a business buy on emotion and yes its all about money and keeping costs down.
As long as they know what they are buying with Great Wall, a less economical petrol engine and something they bought for $24k odd won't be anywhere near that on resale.

[barra240t]

Originally Posted by flappist

The Chinese are quite capable of building good quality equipment, VW have a factory in Shanghai that exports to the world.

Great Wall utes are a copy of an older Japanese design and while many on here poo poo them they seem to be aquiring a market.

Japanese performance cars were also treated with ridicule and distain by the Australian motor racing enthusiasts until Nissan turned up at Bathurst with a GTR Skyline.......

And lets be realistic, if Great Wall suddenly turned up with a AU/BAish looking RWD high powered V8 (with LOTS of stripes) and an I6 that was compatabile with Falcon parts and accessories and retailed for $20-25k I suspect it would sell quite well to a huge segment of the Falcon market.

And if they did the same with a Commodore compatible they may actually wipe out Ford and Holden manufacturing in Australia forcing it offshore to survive.

So Great Walls/Chery/Geely/BYD look-a-like Yaris/Aurion/Camry will be next on your shopping list? ;)

[exdubbleya]

Having worked in the small appliance industry for a while, its no surprise that every appliance (kettle, toaster etc) is now made in China. If you would have said this 10 years ago when Australia still had a manufacturing sector you would have been laughed at. The reality is the Chinese have improved – both quality of manufacturing and quality of design.
I know that a kettle and a car are not the same – but the fact remains that China has a huge labour force, overheads are low and quality is increasing. With regards to vehicles, I reckon a few things will definitely happen. The major brands will start manufacturing in China – and we will probably not notice the difference. Chinese companies will rip off or borrow other/older designs (look at proton “borrowing” older Mitsubishis) – and they will learn and improve. In time, and it will take time, these Chinese brands will grow and be major players.
Will Great Wall work? Who knows – I am sure the same question was asked 20 years ago when Hyundai started – look at their designs now.
Interesting times ahead eh?

[flappist]

Originally Posted by barra240t

So Great Walls/Chery/Geely/BYD look-a-like Yaris/Aurion/Camry will be next on your shopping list? ;)

If they are half the price with reasionable build quality and equivalent warranty then yes they are.

Of course I never personally drive any of these work cars

[ltd]

I can just imagine a song if they start exploding like the Ford Pinto used to;
"Goodness gracious Great Wall's on Fire"

It'll find a market no less and let's face it, when everyones bills keep going up and up and up people will opt for the cheap new car. No brainer really.

[Fled74]

Originally Posted by Bobman

Watch the road toll rise if people are stupid enough to buy them!

Agree 100%.

[swapper]

Originally Posted by Bobman

Watch the road toll rise if people are stupid enough to buy them!

Bobman, I see you drive an EL
i hate to point out th obvious, but these great wall cars pass all ECE/ADR requirements! Something an EL would not pass, and not be allowed to be sold as a new vehicle anymore!
So you might say people are stupid to buy them, but perhaps you should remember they are safer than the car you drive every day!

[SB076]

Originally Posted by jpd80

Great Wall cars will get a 4 Star ANCAP rating, there's a big stink about it
because they achieved it without Stability Control...

Isnt stability control mandatory on all new private vehicles later this year?

I havent seen the crash test results (for the cars - so dont know what they will acheive) The utes only achieved two stars (but I still see a few on the road)

Some will buy some will not - they will make it difficult for the budget brands as you suggested. However I remember reading an article stating that the Chinese would not sell cars on cost alone..... They were leaving that to Indian manufacturers who were supposed to be bring out new cars at less than $10,000

[bobthebilda]

The chinese are much better placed than the japanese and koreans were at this stage of their car industry development. Japan and Korea industriea mainly developed by natural growth, the chinese have been buying big in regards to companies and technology to speed up the process. Add a labour pool that is a hundred times bigger than australia, and the majors jumping over each other to manufacture in China, one would have to think China's car exports will jump in terms of quality and quantity, very quickly in comparison to what Japans and koreas did. The first crop of importrs may be at lower end, from major wannabee's, but with all the majors manufacturing in china now (with the same systems in place as their other worlwide plants), it wont be long.

The only saving grace maybe that they have to navigate near the great barrier reef to get the cars down the eastern seaboard.

[vztrt]

Originally Posted by exdubbleya

Having worked in the small appliance industry for a while, its no surprise that every appliance (kettle, toaster etc) is now made in China. If you would have said this 10 years ago when Australia still had a manufacturing sector you would have been laughed at. The reality is the Chinese have improved – both quality of manufacturing and quality of design.

China control their currency so the cheap stuff will stay cheap. The good stuff from China you actually do have to pay good money for.
Even then I've seen stuff made from Japan and then made in China from the same specs (tolerances, metallurgy, process) not last as long as the stuff from Japan.

[Dodge]

ur missing the point, safety is always the thing i think about before saving money when buying a car that i drive my family around in. i dont like how the great wall is able to sell here with a bad crash safety record and the cops pick ur older to pieces because the seat belts are faded

[irish2]

Originally Posted by Dodge

ur missing the point, safety is always the thing i think about before saving money when buying a car that i drive my family around in. i dont like how the great wall is able to sell here with a bad crash safety record and the cops pick ur older to pieces because the seat belts are faded

You are the minority. I bought a 64 year model car because of the car. It weighs ~1200kg and originally only had lap seatbelts in the front. I have fitted lap sash seatbelts but in a serious accident I would still be screwed. I don't have tochange my jocks every time i think about driving it I just enjoy the car. Being on or around a road is not safe at the best of times no matter the type of transport.

[jpd80]

Originally Posted by SB076

Isnt stability control mandatory on all new private vehicles later this year?

I havent seen the crash test results (for the cars - so dont know what they will acheive) The utes only achieved two stars (but I still see a few on the road)

Some will buy some will not - they will make it difficult for the budget brands as you suggested. However I remember reading an article stating that the Chinese would not sell cars on cost alone..... They were leaving that to Indian manufacturers who were supposed to be bring out new cars at less than $10,000

Only when seeking 5 Star rating.

I'm not trying to convert or sing their praises, I just see the Chinese
car makers being more successful and a bigger threat to the Koreans.

Look at all the Schmos out there who currently buy bottom end entry level vehicles
and don't really obsess over car makers, all they see is a check list in their head,
if it's comfortable and affordable, most families will give it a shot.

I wouldn't worry if their car were true rubbish but if they happen to be
half decent then the Koreans are in for a real rough time in the market...

[swapper]

Originally Posted by Dodge

ur missing the point, safety is always the thing i think about before saving money when buying a car that i drive my family around in. i dont like how the great wall is able to sell here with a bad crash safety record and the cops pick ur older to pieces because the seat belts are faded

the cars they plan to sell here pass ALL of our legal regulations, why should they not be able to be sold, and on what grounds?
Please tell us about great walls bad safety record?
And what's your point about the cops picking up on old worn belts?
Whilst I personally would not buy a chinese car, and understand they aren't the safest cars on the road the simple fact is they ARE up to legal standard
I find it funny how people say they would never drive or put their family in a Chinese car however in many cases they drive a 15 year old falcon that would not pass current ECE/ADR standards (not aimed at anyone in particular)
well that's my rant haha

[jpd80]

Had a thought after speaking with a dealer friend, he seems to think established brands
will be pretty safe against the Chinese brands. At the moment, it seems like $23,990 Utes and SUVs
are after the second hand Hilux and SUV market, maybe that's where they make inroads.
After all, why pay $23,990 for a second hand Ute SUV when you can get one new?