Howzit my China!

18 November 2010 - 21:52 By By MABUYANE KEKANA
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China has more than 400 manufacturers and assemblers of automotive products and many of them want to enter the exciting South African market.

The Chinese have a point, considering where the Koreans, particularly, Hyundai, started.

But in order for Chinese brands to win the hearts of South Africans, they need to look critically at themselves.

Many of us thought the Korean brands would never stand a chance, let alone attain the levels of respect they enjoy today in our market. Ten years ago we were laughing at them. Today they are laughing all the way to the bank.

This has prompted us to take a closer look at Chinese brands, often the laughing stock of the South African motor industry.

South Africa is currently home to no more than 10 Chinese brands. Here we look at these products individually to see if they stand a chance of competing in one of the toughest and snobbish markets in the world.

Although we still have a huge percentage of people not owning a car, the Chinese are often disregarded by these individuals because of quality issues.

For many South Africans driving a Chinese brand makes them look cheap. The Chinese have a lot of work to do in terms of dealing with quality issues and strengthening the brands.

South Africans want good quality, reliable cars - an idea that the Chinese do not seem to fully grasp. However, looking at the prices they offer, the Chinese are on the right track.

For instance, you can get a Chery QQ3 for R70000 with a 0.8-litre engine and all Chery cars come with a 3 year/100 00km warranty.

The Chinese might yet take us by surprise. Yes their cars seem cheap but these guys have a plan.

Geely

Geely is back for a second bite of the local car market after first arriving here three years ago.

Their initial foray was not successful but this time round are determined to do well.

Geely is privately owned, with no shareholding by the Chinese government - which erases the argument of unfair competition owing to state subsidies. The Chinese parent company holds a direct stake in the local company, as it considers South Africa an important part of its future export growth strategy.

Great Wall Motors (GWM)

GWM head honchos believe the brand has great growth potential in South Africa.

A new manufacturing plant in Tianjin, China is a clear indication of this. This plant will produce an estimated 300000 vehicle units a year! This is over and above their current annual capacity of over 400000 units.

GWM showcased 24 vehicles across three product categories at the 2009 Shanghai International Auto Show. These vehicles are due for release in the next year and illustrate GWM's commitment to research and development.

Chery Automobile

When Chery invited a South African media delegation to its Uhu plant in China in early 2008 it became apparent that the Chinese were serious about South Africa.

The Chery management and importers McCarthy made no apologies about their intentions. The Chinese brand had planned to offer affordable if not cheap cars.

However, things went horribly wrong for most Chinese brands soon afterwards: the world economic crisis hit and it was tough to trade even for the most established brands.

Chery has, however, stayed despite the insignificant sales figures.



GoNow Auto

GoNow launched its first series of light commercial vehicles for the South African market in 2007 after four years of sourcing, local testing and development.

It has appointed 44 dealers and like many Chinese companies, GoNow is hoping that the brand will do well.

The Southern African region forms part of the strategy GoNow will use in order to expand the brand.

Gonow Auto SA holds exclusive import distributions agreements with four Chinese automotive manufacturers

Chana SA

South Africa's motor industry hit its darkest time for many years in 2008.

Influenced by the global financial crisis, South Africa's sales suffered badly from the falling demand and the credit crunch. According to Naamsa, sales volume decreased by 35.8% in the first five months of 2009 and as a result numerous manufacturers and dealers felt the squeeze.

Despite that Chana last year announced an ambitious development plan to fully support its product.

South Africa is one of Chana's most important overseas markets and it plans to invest more than $80 million in South Africa and establish a factory with an annual capacity of over 50000 cars in the next five years.

Establishing a sales company and a retail financing company in South Africa and introducing more highly cost-effective products are also part of the plan which will create more than 1000 local jobs.

Chana SA will become the operating centre in Southern Africa, as well as a global base of research and development, assembly and the supply of right-hand drive vehicles.

Zotye Motor Corporation

Zotye arrived on our shores in February this year, armed with a number of vehicles and a hope that the public would run straight to them due to pricing.

This is where Chinese car makers are committing a huge mistake - price alone will not make buyers queue for the product.

The Zotye range kicked off with the Nomad SUV, the most affordable SUV in the country with a price tag starting at only R119995.

Although the product was initially sold from a few select branches, the company had promised to expand its dealer network.

Our attempts to get Chery, GWN and Chana to provide us with their future strategic plans proved fruitless.

  • The Koreans have since upped their game. They are on a smoother ride, winning accolades and awards nominations.

Some of the them are:

Kia Picanto named Best Budget Car under R80000 two years in a row, Car Magazine, Car Top 12 Buys 2006.

Kia Sportage is a nominee for Car of the Year 2011.

Hyundai has two nominees for the 2011 Car of the Year competition, the iX35 and Sonata.





Another proud GWM owner

Chris Crouakamp says buying a Chinese car was easy for him as he had witnessed an era where certain manufacturers were laughed at.

Speaking to MotorMania this week, Crouakamp recalled how Toyota used to be a laughing stock in the '60s. "People use to warn us against this unknown brand, they use to say don't buy a Japanese brand," he said.

Crouakamp drives a Soyat Junda, a seven seater he bought in 2007.

And according to him it was an easy decision to purchase the vehicle.

Crouakamp applauded the Chinese for their "high level of professionalism and service".

He says he has never had a breakdown in his Soyat, except when a tyre sprung a puncture.

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