China's biggest vehicle brand now has a niche entry into Australia as Sydney-based importer Ateco picks up a string of people movers and commercial vans.
Ateco Automotive this week took on the importation and distribution of LDV, the commercial-vehicle arm of China's biggest automotive group, Shanghai Automotive Industry Corporation (SAIC).
But the entrée into SAIC also gives Ateco the opportunity to import Chinese-made passenger cars in the near future.
It is the fourth Chinese brand to be imported by Ateco.
Company spokesman Daniel Cotterill says Ateco starts launching the diesel-powered V80 range of delivery vans in October, then will introduce the G10 seven-seat people mover and one-tonne light van in the first quarter of next year. Automatic transmission will become an option across the range in early 2015.
"The people mover gives us direct access to Australia's people-mover sector and that makes it easier in the future to import passenger cars," he says. "We are also looking at a ute which we expect here within 18 months."
Mr Cotterill says pricing is still a "work in progress" but says the short wheelbase V80 van, the cheapest in the range, will sell for less than $30,000 including drive-away costs. That indicates the V80 will become Australia's cheapest one-tonne delivery van. Rivals include the diesel Ford Transit at $37,490, Fiat Scudo ($28,990) and Hyundai iLoad ($36,490). These prices do not include on-road costs.
"We will price the range as competitively as possible," Mr Cotterill says. "It is a very competitive sector of the market." He says Ateco won't move from the industry-standard three-year, 100,000km warranty.
The LDV distributorship was originally held by White Motor Corporation. Ateco now plans to use the existing 18 national LDV dealers to build up to 30 by October and 40 by the end of this year.
Mr Cotterill says some dealers may be existing agents for Ateco's other Asian brands, Great Wall, Chery, Ssangyong and Foton.
In addition, Ateco distributes Maserati and Lotus. Despite the volume and pricing of the Chinese vehicles in Ateco's portfolio, only Maserati is showing sales growth.
Great Wall sales have slumped 58 per cent year to date in comparison with 2013. Chery is down 20 per cent and Ssangyong is also off 20 per cent in the same time period.
Mr Cotterill says it's disappointing but blames the drop offs in sales to currency changes that erode the landed price of the vehicles.
"It (light commercial vehicle ute market) is extremely competitive and it all comes down to price," he says. "There are two reasons for the sales fall in Great Wall – the price and the fact that the Chinese company has had difficulties and has been unable to upgrade its right-hand drive vehicle models.
"But we see the currency issue and the stalling of vehicle development in China as cyclical. It's tough at the moment but we are positive for the future." In addition to building its own vehicles, SAIC is China's biggest and oldest joint-venture car company with ongoing partnerships with General Motors and Volkswagen.
LDV was bought from UK-based Leyland DAF Vans (LDV) in 2009. The front-wheel drive vans use a VM Motori 100kW/330Nm 2.5-litre four-cylinder turbo-diesel engine.
The V80 range includes three van formats and 11 and 18-seater buses.
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