Chinese OEMs aiming for UK debut in 2012

With the first Chinese brand models set for sale in the UK and various European markets by the end of 2012, Chinese tyre manufacturers with OE-supply deals in their homeland could begin to see a very small amount of pull-through.

While some Chinese cars such as the Shanghai Automotive-owned MG brand are already driving on British roads under local monikers, Geely Automobile Holdings Ltd’s Emgrand EC7 family hatchback and saloon will be something of a first when it goes on sale in the UK. Geely, which is currently mid-way through a UK dealer recruitment programme targeting 40 dealers, appears to be trying to do what Hyundai and Kia have done in recent years and build a position quickly from scratch by offering “good quality, really good value for money and a long warranty.”

Matthew Cheyne, market development director Geely Auto UK said: “Initially this year we are looking to appoint between 30 and 40 dealers to provide sales and service facilities in the UK, including Northern Ireland.  More will be appointed in 2013 as the brand grows and more new models arrive.”

Part of the black cab family

Never heard of Geely? They might be more familiar than you think. Geely cars are arriving in the UK now because the manufacturer reached an agreement with the UK’s Manganese Bronze Holdings plc (MBH) to become their distributor for the United Kingdom for the sale of new Geely cars last year. The deal also means the company will set up the supply of parts, establish a dealer network and to provide an after-sales service. What may surprise you is that MBH and Geely are already partners in building the iconic London black cabs with production for the UK market taking place in Coventry by The London Taxi Company, a division of MBH, and for world markets vehicles are produced in China by Geely.

John Russell, CEO of MBH said, “We are all aware of the success that the Korean brands, Kia and Hyundai have had in the UK and we can work with Geely to achieve similar success in the future.”

Geely already holds EU homologation and whole vehicle type approval, Euro 5 emissions and the EC7 recently scored four stars on the Euro NCAP test. And what’s more, they will come with a five-year, 100,000 mile warranty.

Geely cars come fitted with Giti-made tyres

Despite the fact that Zhejiang Geely Holding Group Co., Ltd is based in Hangzhou Province in China (which is of course also home of leading Chinese domestic tyre producer, Hangzhou Zhongce Rubber), the EC7 will arrive in the UK on tyres produced by Giti Tire (the leading wholly owned foreign entity producing tyres in China). The first model to enter the UK will be fitted with 215/55 R16 tyres fitted to alloy wheels produced by an as-yet unnamed wheel manufacturer. Similarly no details of which brand produced by Giti (the company produces GTRadial, Primewell, Runway and Dextero tyres for various different distribution channels) will be fitted, but it will certainly be one of them and is likely to be the company’s GTRadial flagship name. No-one is suggesting this OE move will be an automatic boon for those associated with distributing tyres produced by Giti or any other Chinese tyre manufacturer, but it certainly does suggest that Chinese carmakers could at some point establish a foothold on these shores. And if and when that happens, there will be OE market share up for grabs too.

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