Bakkie for the price of a bike

Geely South Africa has stunned the motor industry with the news that it will sell a half-ton bakkie for less that the cost of a small motorcycle. Other models are also aggressively priced.

The firm has entered into an agreement with Chongqing Sokon Motor Group Import and Export Company to import and distribute a range of half-ton light commercial vehicles that will be sold in South Africa under the DFSK brand.

The vehicles will include a pick-up in both single and double cab configurations, a passenger bus and a cargo van. The pick-up will be available with 1.0l and 1.3l engines while the double cab, bus and van will be available only with the 1.3l engine.

"The range will be marketed through the Geely SA dealer network. Its aggressive pricing will start from just R49990 (excluding VAT) for the 1,0l pick-up model," said John Jessup, chief executive of Geely SA.

Retail prices (excluding VAT) are:

1.0 Single Cab Pick-up: R49990

1.3 Single Cab Pick-up: R59990

1.3 Double Cab Pick-up: R64990

1.3 Panel Van: R73990

1.3 Mini Bus: R76990

Reacting to the news, one of the country's leading importers of vehicles said, it was "virtually impossible to sell vehicles for that price".

The chief executive, who asked to remain unidentified, based his claims on his own company's business model for costing imported vehicles. After crunching the numbers he said working with an exchange rate of R8 to one US dollar the landed cost should be $3500 or R28000.

"To this must be added 9% dealer and 5% importer's markups. Costs including shipping, transport and other costs also need to be added. It sounds impossible," the chief executive said.

"The question which must be asked is what will the quality be like and will the vehicles conform to tough South African safety standards," he said.

"We wait with bated breath to see what the models will be like," he said.

Meanwhile, an upbeat Jessup was very excited about the move.

"This is a very exciting new development for us and allows us to introduce a new brand in the light commercial vehicle market that will offer a whole new dimension in value-for-money," he said.

"DFSK is the automotive brand of the highly respected Chongqing Sokon Industry Group, which also manufactures car engines, motorcycles and shock absorbers. The group's automotive division is well known through its joint venture with the Dongfeng (DFM) brand, which is the second largest in China, and also has joint ventures with Honda, Nissan, Kia, Peugeot, Citroën and DFSK. It also manufactures a large range of highly successful heavy commercial vehicles," Jessup said.

"Further down the track we are looking at introducing DFSK special application vehicles, built by the factory, which will include a mini tipper truck (with both rear and side dump applications), a mini vendor truck, and possibly also an ambulance version," he said.

The new vehicles will certainly be an affordable option which many will welcome in these tight economic conditions and seem ideal for those wanting to start a small business without high overhead costs.

Well done Geely!