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APRIL - JUNE 2006  |  
CHINESE ONSLAUGHT HOTS UP

The Chinese onslaught on the South African vehicle market is coming sooner than many industry commentators expected.

Due to safety and quality concerns, it seems that it will take some time for Chinese cars to gain ready acceptance in the large and lucrative European market. Initial safety tests on some of the potential Chinese imports have not gone well, which has probably sparked these manufacturers to explore less sophisticated markets in the short term.

And while the Chinese market is a left-hand drive one, making right-hand drive versions of their vehicles available does not appear to be an obstacle.

Four local motor groups - McCarthy Motor Holdings, Super Group, AutoHaus Gobel and the Imperial Group - have already announced their plans to introduce Chinese models.

McCarthy evidently intend bringing in a range of passenger and LCV models early next year under a single, unique brand name, while Super Group has already launched a range of trucks and buses from the Dongfeng group in China. Autohaus Gobel is importing the Chana bakkie, while Imperial's Chinese offerings will kick off with a range of medium trucks. There is also talk of another local company, TJM Holdings, selling Chinese-made sedans for less than R70 000 from next year.

At this stage it seems that most of these products will come to South Africa in built-up form. Meanwhile, Super Group is establishing a medium and heavy commercial vehicle assembly plant at the former Deutz diesel engine plant in Pietermaritzburg, producing vehicles that will be marketed under the Powerstar brand name.

Autohaus Gobel, previously involved with importing and servicing SAABs, will introduce its first low cost Chinese bakkie from the ChangAn Automobile Group in August. It is expected that the R64 900 bakkie will be followed by a panelvan and later a range of passenger cars. A network of 12 franchised dealers will distribute them.

All this recent activity is in addition to the fact that one of China's biggest manufacturers, FAW (First Auto Works), has been selling a range of trucks from a dealership in Edenvale for several years now.

 

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