Has the Chinese car sales boom peaked? MG, GWM Haval and LDV growth slows in 2022, but all three brands have bigger plans for Australia

The rise of popular Chinese-owned brands MG, LDV and GWM has been nothing short of meteoric in Australia.

But are we seeing the end of that unprecedented growth? Are sales evening out to what will be a regular rhythm? Or are these manufacturers just getting started?

A combination of affordable pricing, appealing design, crucial safety features and lengthy warranty have catapulted MG, LDV and GWM to mainstream acceptance in the Australian market.

MG is now firmly entrenched in the top 10 brands each month, while GWM was more popular than long-established brands like Honda and Suzuki last year.

LDV is also punching above its weight in the light-commercial and SUV segments. 

The MG3 is the most popular light car in Australia.

MG

MG has had the most dramatic rise. The formerly British brand returned to the Australian market in late 2016 backed by parent company SAIC, following a slow start under former private distributor, Longwell Motors.

SAIC had bold plans for MG back in 2016, but no one could have predicted that it would become Australia’s budget brand of choice.

In 2017, the first year of sales under the factory-back operation with the MG3 and MG6, the company sold just 600 cars.

Cut to last year and MG shifted an incredible 39,025 units, representing a 156 per cent increase over its already huge 2020 haul, and a 6400 per cent increase in just four years. That was enough to make it the ninth best-selling automotive brand in Australia, ahead of Subaru, Isuzu Ute and a lot more.

In the first two months of this year, MG has sold 7305 vehicles, which is still 34.7 per cent ahead of the same period in 2021, but it’s not the triple-digit growth the brand has chalked up each year since 2018.

Last month, sales of the HS medium SUV dropped by 6.2 per cent and MG’s February tally was 24.9 per cent up on the corresponding month in 2021. Again, not a bad result, but far from the massive growth of the previous year.

MG sells just three models in Australia – the MG3 light hatch, ZS small SUV and HS medium SUV. While that line-up will likely expand, there’s no word on what new models are coming or when. If it’s just three models for a few more years, then sales could stagnate.

However, an MG Motor Australia spokesperson told CarsGuide that despite the challenges caused by parts shortages and supply chain disruptions, the brand expects to import a similar number to the 4000 vehicles per month it managed in 2021.

“MG’s stability is key to its continued growth, and we anticipate further growth in 2022 and beyond.

“There are no significant or unusual product-related shortages that will affect our sales into 2022,” they said.

The GWM Haval Jolion replaced the underwhelming Haval H2.

GWM

GWM Australia is made up of light-commercial brand Great Wall and its SUV offshoot Haval, and like MG, it’s a factory-backed importer.

GWM ended last year on 18,384, a 251 per cent increase on its 2020 result. That’s light years ahead of its 2017 tally of 1114 units.

Currently, GWM has three model lines, including the Haval Jolion and H6 SUVs and the GWM Ute. The Haval H9 and H2 and Great Wall Steed have all been discontinued or replaced.

While the Haval models are enjoying huge sales this year (885 and 690 respectively), the GWM Ute has dipped by 42.6 per cent year on year.

While this could signal a slowing of overall GWM sales, the company has big expansion plans in Australia. New SUVs like the Haval Big Dog (aka Dargo) and Tank 300 and 500 are all but confirmed, while EV sub-brand Ora is also being seriously considered. This would not only increase GWM’s sales momentum, it could push it further up the charts and give MG a scare in the top 10.

A GWM spokesperson told CarsGuide that the semiconductor shortage and shipping delays impacted its sales in February, which has had an effect on customer deliveries. But they added the company was still expecting growth in 2022.

“Last month was particularly challenging with global supply chain issues combined with isolated cases of quarantined shipment meaning our actual result was significantly less than planned,” they said.

“However, we continue to work with the factory to secure our fair share of supply and still plan for our 2022 performance to show further growth over the record 2021 result.”

The LDV T60 Max is a facelifted version of the T60 ute.

LDV

MG’s SAIC stablemate, LDV, is imported in Australia by private distributor Ateco Automotive. LDV sold 15,188 vehicles here in 2021, which is 62.9 per cent ahead of its 2020 result.

However, this year, that growth has shrunk to 28.8 per cent. The light-commercial vehicle specialist is still recording strong sales, with high numbers for its sole SUV offering, the D90, and new Deliver 9 large van range, which is the best-selling van in its class so far this year.

But T60 ute sales are down by 41.9 per cent in the first two months of 2022 in a segment that is up 9.5 per cent. And that’s despite the arrival of the facelifted T60 Max at the end of last year.

Despite the sales dip, an LDV Australia spokesperson said the brand has a significant order bank for the T60 Max, and they expect the brand to continue to “grow substantially”.

“While T60 Max sales have been affected by supply issues, we’re expect to see supply free up in the coming months. This will instantly translate into customer deliveries,” they said.

LDV has a growing electric stable in China and other markets including New Zealand, and it is expected to make an announcement about its EV plans later this year.

While that might add incremental volume, it won’t be enough to greatly increase its volume. A more mainstream offering that could further beef up its sales is the D60 medium SUV that was revealed in 2019. It was rumoured to be added to the Australian roster at the time, but nothing solid has been confirmed since then.