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30/04/2011
By ALISTAIR KENNEDY
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Although its impact in Australia to date has been minimal, the spectacular growth of the Chinese automotive industry seems sure to have a significant influence on both the Australian commercial and passenger vehicle markets during the next decade.
China is now easily the largest motor vehicle manufacturer in the world, producing over 18 million units in 2010, almost double that of its nearest competitor, Japan. Despite this dominance only a tiny percentage were exported, the majority to third-world countries where standards are less stringent than in developed countries.
Late last year we visited China where one of our stops was at the headquarters and factory of the Jianghuai Automobile Company (JAC) one of China’s longest-established and largest vehicle manufacturers. It’s also one with a more export focussed outlook than most of its compatriots with a research and development centre in Italy and a design centre in Japan. And Australia is about to have a range of JAC’s light-duty trucks arrive on its shores.
Production of Australian specced JAC light trucks will commence at the company’s Hefei factory in July after satisfying the Australian Design Rules (ADR) covering safety and emission requirements when tested by officials from the Department of Transport and Road Safety (DOTAR) in Sydney recently.
Commenting on the ADR compliance, JAC Australia Trucks Australia managing director, Jason Pecotic, said “Meeting the requirements was never going to be an issue however it was still a major achievement as we move closer to launch in Australia, where we have some of the most demanding design standards.”
Imported vehicles from any new source country, such as China, will invariably have their quality heavily scrutinised before Australian buyers will commit themselves. As we’ve seen with vehicles from Japan and South Korea it can often take a decade or more before they gain widespread acceptance.
Importantly for JAC as it enters this new market is the credibility it should gain through using such well-respected components as Cummins (engines), Allison (transmissions) and Wabco (brakes).
Distribution will be another crucial factor in success of the vehicles, but as part of the White Motor Group (WMG), should be well-placed because of its close links with the Automotive Holdings Group and its large dealer network.
The first JAC demonstrator models should be here in July with the initial batch of sales stock following in August or September. Jason Pecotic expects to release final specification levels and prices within the next two weeks. Anything but high equipment levels and low prices will be a surprise.
A range of medium-duty trucks will follow some time in 2012.
Although a truck specialist JAC also builds passenger cars, SUVs and light commercial vehicles. Extensive research and development and engineering work is currently underway with a view to JAC diversifying its Australian range.
Jason Pecotic told us that a JAC light commercial van, similar in size to the Mercedes-Benz Sprinter, and powered by a Cummins 2.8-litre engine is expected to go on sale in Australia around October/November 2011. Given the success of Hyundai’s affordable iLoad van and the importance of price to business operators it will be interesting to see what impact the Chinese van has here.
The first JAC passenger vehicles should arrive in Australia towards the end of 2012. Expect to see a small-medium hatch and sedan and a medium-sized family sedan, called B-Class and C-Class in their home market but likely to be re-named here. During our China trip we were able to examine both cars as well as the others in the JAC range, including an SUV, one-tonne pickup and people mover.
We also had a brief drive of a B-Class on the roads within the JAC factory complex at Hefei. Our first experience of any Chinese vehicle revealed a reassuringly solid car, with a smooth engine, well-designed interior and plenty of interior space.
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