Chinese car stigma "softening"

Resurrected British brand MG has just launched its crucial new GS medium SUV in Australia priced from a sharp $23,990.

But how many customers will avoid the car simply because it's made in China?

Cars originating from the ‘Middle Kingdom’ traditionally haven't lived up to the high expectations of Australian new car buyers, who are spoiled for choice in a market largely populated by high quality vehicles. In short, there are very few stinkers.

On the other hand, Chinese-produced vehicles have long been subject to safety concerns over poor crash test results, and around 24,000 vehicles made in China have been recalled in the past due to asbestos being used in the head gaskets.

Just 2927 Chinese-made cars were sold in Australia in 2016, which is a tiny percentage, just 0.2, of the 1,178,133 new vehicles sold here last year.

But MG executives are convinced Aussies will give their cars a go, despite the many factors stacked up against them.

Zhu Chao, MG Motor Australia's general manager, agreed that Chinese cars have "had some bad history here" but said that the products will speak for themselves.

The company has joint ventures in China with General Motors and Volkswagen and says that improved process controls are resulting in much higher quality vehicles.

"For a new product and new brand like us, the most important thing is getting people to come and test the car. It has its own character, the whole car is designed and developed in Europe but with a more affordable price," Chao said.

"Our product level in China is similar to GM and VW products. It's nothing like Geely, cheaper and low cost."

The Chinese car stigma is will eventually disappear and cars built in that country will be viewed by Aussie buyers just as Japanese or Korean cars are today, says Danny Lenartic, senior manager marketing and communications at MG Motors Australia.

"The stigma is not gone, but it's softening. And it will continue to soften. It's the product we're bringing to market that helps that, and beyond the product it's customer service, strong warranty and aftersales care," he said.

All MG vehicles sold in Australia come with a six-year, unlimited kilometre warranty with six year's free roadside assistance. It also offers a nine-year capped price servicing programme.

"I would say to people they only need to look around them to find out what exactly is made in China and to understand that it's no longer it's cheap," said Lenartic.

"The whole made in China commentary will dissipate quite quickly. You only need to go back in time where you're reading the same content about so many other manufacturers globally. The sentiment changes. I have absolute confidence the made-in-China sentiment will shift significantly and sooner rather than later."

The MG Motors Australia executive said that with more dealerships opening, the company will refine its aftersales service, and "customer interaction before, during, and after the sale process".

"We'll test, learn and evolve to make sure we listen and adapt. The good thing about being a small challenger brand is that we're nimble. We will shift our thinking our strategy if we need to."

We tested the new MG GS recently and the car certainly makes a more positive first impression than its forebears, scoring a commendable 67/100. With a few tweaks here and there the car could certainly rate higher.

Consider that the best-selling car in Australia in 2016, the Toyota HiLux, is built in Thailand. Cars from that country were once viewed as poor quality. It wasn't long ago that Korean cars were viewed with disdain, and before that it was the Japanese.