Fledgling Chinese car brand Lifan will soon sell cars in Australia and could eventually assemble cars locally.
The small Chinese car manufacturer Lifan Motors has revealed it is considering local assembly as a strategy to gain better sales acceptance in Australia.
The Chongqing-based company is currently in negotiation with several potential distributors to set up an Australian dealer network to sell imported cars, but says it may move to local assembly in the future in the form of semi-knocked down kits (SKD).
"We have discussed SKD plans in the Australian market, build the body in China and import it to Australia", Lifan assistant general Igor Tan told Drive during an exclusive interview at Auto China in Beijing last week."
However, he would not give any sort of timeline for Lifan's plans: "We are wanting to have our cars in Australia but a date is not confirmed.
Setting up local assembly would be true to form for Lifan, which has followed that model in some of the developing markets it has so far established outside China. However, Australia is an established market with relatively low import tariffs and high labour costs, and auto manufacturing is struggling to survive.
"It may make more sense economically to assemble the cars in Australia than just import them," explained Tan "And doing the SKD in Australia it may be much more acceptable to the people than just a completed car.
"SKD would also make the after-sales much more convenient."
Tan said the SKD plan was at such an early stage there had been no investigation of potential government support or assembly plant locations. A study trip to Australia may take place as soon as June.
Lifan is a minnow by Chinese standards, selling only 60,000 cars in 2009. It aims to grow to 100,000 in 2010, with exports accounting for more than 20 per cent of that.
The only attention Lifan has gained in Australia previously has been for its 320 model, a mini-car derided for being obviously inspired by the Mini Cooper - Chinese car makers regularly copy other marques' designs - except for the fact it has five rather than three doors.
Lifan is only one of many Chinese brands planning an Australian assault. But is one important step ahead of many of them because its Toyota Yaris-sized 520 sedan and hatch has already gained Australian Design Rule (ADR) approval for local sale.
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