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Samuel Ee
Wed, Sep 05, 2007
The Business Times
Question mark hangs over Wuling's distributorship in S'pore

YET another Chinese brand is set to enter the Singapore market - but exactly who will offer it here isn't clear.

Last Saturday, new company KB Auto held a preview of Wuling Motors's two models - the Journey seven-seat multi-purpose vehicle and the Sunshine goods van.

KB Auto says it expects the Land Transport Authority to approve them by next month.

But General Motors Overseas Distribution Corp (GM ODC) - the regional distribution arm of General Motors - is understood to be eyeing the distribution of Wuling Motors in Singapore.

This is because GM owns 34 per cent of Wuling, which is based in Guangxi province in southern China. Another 50 per cent is owned by Shanghai Automotive Industry Corporation (SAIC).

GM is the world's biggest carmaker, while SAIC is among China's top vehicle Chinese manufacturers and is best known as the Chinese joint-venture partner of GM and Volkswagen. GM ODC could not be reached for comment.

But KB Auto has signed a memorandum of understanding with Wuling and is settling the distributorship agreement 'at this point in time', said sales and marketing manager Samuel Wong. 'We are positive that we have secured the dealership.'

KB Auto is a tie-up between KI Auto, which used to offer Kia commercial vehicles, and Bestlink Auto, a parallel importer of Japanese passenger models. KB Auto is also linked to Ssangyong Motors, the distributor of Ssangyong SUVs and commercial vehicles, through a common director.

The Journey and Sunshine, which were previewed at KB's Defu Lane showroom, are based on the same platform with an identical 1.1-litre petrol engine, except that one is a passenger vehicle and the other is made for carrying goods. Mr Wong said that when approved by LTA, the Journey MPV's estimated price will be $40,000 to $45,000 while the Sunshine commercial vehicle is likely to cost from $20,000 to $25,000 - both including COE.

The target buyers for the Sunshine are small and medium-sized companies, contractors and even big organisations like SingTel because of its 'substantial cargo space', said Mr Wong.

The Journey will be aimed at first-time and budget car buyers, as well as middle and high-income earners looking for a second car that is expected to be one of the cheapest seven-seaters on the market.

Asked why KB picked Wuling Motors, Mr Wong said: 'We studied the company for some time and we found out that it is No 1 in China in terms of market share for mini commercial vehicles. And with GM's shareholding in Wuling, the reliability is definitely there.'

Wuling sold about 460,000 units last year, he said. But for Singapore he declined to forecast sales.

'We are not talking about market share now because we don't have a full range of vehicles,' he said. 'There will be no sedans or big commercial models. We will only have these two models for the time being.'

Five mainland marques are already found on Singapore roads, and they are represented by just two parties. The first is Chery, which debuted here in July last year. Chery also has the biggest line-up of five models.

Next was Geely in October 2007. These makes, which happen to be China's two major car manufacturers, were followed by Hafei, Dongfeng and Soyat.

The Chery and Hafei dealerships here are both linked to Lian Fong Credit Holdings, better known as a wholesaler of eggs but also involved in the car trade. The other three brands are represented by Group Exklusiv companies.

But expect many more China brands in a showroom near you. Industry talk is that several other Singapore distributors are looking to import Chinese makes and at least a couple more partnerships will be announced soon.

 

 
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