Chinese Cars Coming To Australia In 2009

Motoring Channel Staff - 20/March/2008

Sydney, Australia — It's official, Chinese cars are on their way to Australia.

Car importer Ateco has confirmed that is has finalised a deal with one of China's biggest car makers, Chery, to begin importing and selling budget cars in Australia in early 2009.

Ateco's current import brands include Ferrari, Maserati and Alfa Romeo among others.

The car importer has confirmed that three Chinese models would arrive in Australia next year, including two small cars and a compact AWD.

Ateco's managing director Ric Hull said they won't be super budget cars priced at under $10,000, but would compete with Korean brands such as Kia.

Many experts have warned that Chinese car manufacturing has almost reached its peak in China, and that millions of cheap vehicles will be exported around the world in the next decade, potentially flooding markets with cheap cars.

Chery already exports cars to Europe, the Middle East, India, and has struck a deal with Chrysler to sell its cars in the USA.

Some analysts warn that an influx of Chinese cars into Australia would hurt local manufacturers, such as Ford and Holden, which are already suffering as buyers move away from large cars.

Worst case scenarios predict local manufacturers could cease production altogether.

Though this may be an alarmist take on events, there is every chance that Chinese made cars will put the squeeze on local brands like Ford and Holden.

One way to protect the local industry and help Australian car makers would be to severely increase tariffs or taxes on foreign/imported cars and similar initiatives that would have to be enacted by the government .

Ateco hasn't confirmed which three Chery cars will be coming to Australia in 2009, but with a list of almost 40 cars in the Chery line-up there are plenty of options.

Chery is one of China's largest car makers and has enlisted Lotus to help engineer its chassis systems, and Bosch is helping design its transmissions.

When the Euro NCAP group (similar to Australia's ANCAP) crash tested some of Chery's vehicles, the results were not good. 

Ateco insists that any foreign cars introduced into this country will comply with all Australian Design Rules (ADR) and will be crash tested according to local standards.

Ateco's managing director Ric Hull boasted that there would be around 75 dealerships selling Chinese-built Chery cars in 2009.

The importer hasn't said how many Chery vehicles it expects to sell in 2009.

Piracy Claims: In the past Chinese car makers have gained notoriety for reverse-engineering popular makes and models and then mass producing them at much lower prices.

Copyright laws are hazy in China, and some car makers copied models including the Honda CR-V and an odd version of the Peugeot 207 with three wheels (pictured).

Chery was embroiled in one such vehicle piracy claim after it revealed the QQ small car, which was virtually identical to the Korean made Daewoo Matiz.

When General Motors purchased Daewoo in 2002, it tried to sue Chery for copying the design. The Chinese justice system proved difficult for GM to navigate, so it dropped the lawsuit in 2005 and has since begun its own operations in China, which brings the old maxim "If you can't beat 'em, join 'em" to mind.

Chery has manufacturing plants in China and Iran and has plan to expand into other countries.

Related articles:
- GM Holden Secures Chinese Exports (2008)
- Auto China 2006 - Beijing Motor Show (2006)