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News - JAC - T9JAC sets up shop in AustraliaAustralia is a strategic expansion test-case export market for incoming Chinese brand JAC24 Mar 2024 By PHILIP LORD EVEN though it has tried selling trucks here about 10 years ago, JAC Motors has returned to the Australian market with not only a keenly specified dual-cab 4x4 ute, but also with plenty more in the pipeline including battery electric and plug-in hybrid models.
State-owned JAC (short for Anhui Jianghuai Automobile Group Corp) has been manufacturing all sorts of products since the 1960s but only in 2007 did it turn its attention to vehicle production.
It has been a swift ride since, with 592,500 vehicles sold globally last year, an increase of 18 per cent over 2022.
Meanwhile, export sales accounted for more than 250,000 units in 2023, a rise of 60 per cent year-on-year. JAC exports to more than 132 sales regions, has six overseas subsidiaries and 19 factories overseas.
Australia is an expansion test-case export market, as the company’s group chair Xiang Xingchu explained at the local JAC T9 reveal in Sydney last week.
“Australia is strategic market. We believe that Chinese auto brands will have more involvement in this market in the future. JAC aims to become a mainstream automotive brand in the Australian market,” he said.
My Xingchu also observed that consumer tastes have changed recently, to the advantage of Chinese brand offerings.
“Auto consumption trends have changed in the post-epidemic era. Buyers want affordable price, five-star safety, more intelligent, richer configuration and reliable quality.”
Meanwhile, local JAC representatives are also expecting great things from the new models. Danny Lenartic, who is deputy managing director of Australian JAC distributor LTS Auto said: “We are offering a vehicle with kerbside appeal, excellent features and approaching European fit and finish.”
JAC enters the market with new and potentially troublesome legislation for a brand selling a single model with CO2 emissions above 200 grams per kilometre: The National Vehicle Emissions Standard, expected to go into effect on January 1, 2025.
Mr Lenartic was confident that JAC would not have an issue with the new legislation, and indeed Mr Jiang said that JAC plans “to introduce the T9 EV 4x4 and T9 PHEV 4x4 in the future”.
JAC Automotive’s local distributor LTS Auto has spent more than $40 million in setup costs including gathering an Australian management team and establishing aftersales. The T9 dual-cab ute will arrive at 53 dealerships (and counting) during April. So far, only Northern Territory misses out on JAC representation, which is being taken on by majors such as Eagers elsewhere.
The company has a dedicated JAC parts and accessories warehouse in NSW’s Lane Cove, which Mr Lenartic said was established to ensure parts supply as the company, according to Mr Lenartic, "wants business owners to be confident parts are available”.
Mr Lenartic also said that he hopes smooth business practices will ensure a strong reputation in the industry, saying the company’s mission “is to align our policies to be the easiest OEM to deal with”.
However, Mr Lenartic was not willing to enter a discussion on sales numbers. “The market decides," he said.
“I’m never going to hold the business to account to a number, what I’m going to hold the business to account to is on the process: it’s the fundamentals, the investment in marketing, the team, customer support, and in the product.
“Get all of those right, and that builds success. Culminating with supporting the network, the (sales) number looks after itself.”
Mr Lenartic added: “We are starting from scratch; we have no legacy – so we should get it right from the start.”  |
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