New wave of Chinese cars coming, why buyers will be able to drive a bargain

The growth in sales of Chinese cars in Australia is about to shift up a gear with the return of Chery – China's largest exporter of new motor vehicles – which is ramping-up its rollout in Australia with some of the biggest dealer groups in the nation.

The arrival of another budget-priced Chinese new-car brand is expected to give buyers a broader choice and a better chance at driving a bargain as the competition heats up follow two years of price rises.

Industry insiders say Chery is on track to appoint a network of 60 showrooms from March 2023 when the first vehicle deliveries are due to commence, starting with the Chery Omoda 5 SUV (pictured above and below).

This compares to approximately 80 dealers each for fellow Chinese brands such as MG and Great Wall Motors Haval, and about 90 dealers for commercial vehicle specialist LDV.

In what is believed to be a major coup for Chery, the Chinese brand is in the process of appointing multi-franchise dealers who already sell either MG, Great Wall Motors Haval, or LDV – or all of the above.

One of the nation's largest dealer groups, Eagers, is also understood to be one of the main players in the rollout of Chery in Australia, adding to its portfolio as a distributor of BYD electric cars from China, four MG showrooms and five LDV outlets.

One of the biggest Hyundai dealers in Australia, John Hughes in Perth – who was instrumental in the early rollout and success of the South Korean brand locally – has also expressed interest taking on Chery, which would add to his portfolio of fellow Chinese brands MG and LDV.

More than 100 of Australia's largest showroom operators and dealer groups attended a packed preview held by Chery at a gala event in Sydney yesterday – seemingly queuing to take on the relatively unknown brand.

Five years ago, Chinese cars accounted for 1 per cent of all new motor vehicles sold in Australia; last year they accounted for 11 per cent.

Industry sources have told Drive Chinese brands have grown at a faster rate than they had anticipated – after a stalled start 12 years ago which saw most depart Australia amid concerns over poor safety ratings and asbestos scares.

However, having seen the success of Chinese brands such as MG, LDV, Great Wall Motors Haval, and BYD, they now want in on the action.

The list of new cars from China due in Australia this year include the Chery Omoda 5 SUV, GWM Ora electric hatch, MG4 electric sedan, BYD Seal electric sedan, Tank 300 off-roader and the updated LDV D90 SUV.

The extra competition is certain to bring downward price pressure, say industry insiders.

"We've seen two years of price rises throughout the pandemic, but the extra competition – regardless of where it comes from – is always good for buyers on a budget," said a leading multi-franchise car dealer who asked to remain anonymous.

"The Chinese brands are ... filling the budget end of the new-car market as the Japanese have crept up prices, and this will only continue."

While Japan remains the largest source of new motor vehicles in Australia, the proportion has declined markedly since China ramped up.

A decade ago, new cars sourced from Japan accounted for 35 per cent of all motor vehicles sold in Australia; last year they accounted for 30 per cent of the sales mix.