GAC Motor ready to make an impact in SA, says Leslie

Although it’s only been present locally for a few months, it has already launched two new models, the EMKOO and GS3 EMZOOM in South Africa with homologation underway for its first electric vehicle for the country, the AION Y.

GAC Motor will bring more new models to the local market during next year, like a luxury bus with the possibility of a pick-up joining the local bakkie battle.

Before year-end, the aim is 20 operational dealerships, spread across the country, with more to follow getting to 40 dealerships within three years, says Leslie Ramsoomar (main photo), Managing Director of Salvador Caetano South Africa and GAC Motor.

“Our aim is not to open as many dealerships as possible, but to establish dealerships in a multi-franchise set-up that is profitable and dedicated to the brand’s values.

“Especially medium-sized privately owned motor groups are our target as the direct commitment and influence of the owner(s) play a vital role in ensuring the exceptional service we are committed to,” he tells Dealerfloor. He also invited interested parties to contact them for business opportunities regarding dealerships.

Leslie says in the larger metro areas, the benefit of being part of an established multi-franchise business is complemented by the expertise and infrastructure that already exist. They also plan to have at least one trained technician at each dealership from the outset with two expert technicians already at the head office to assist where needed.

“The complete team in charge of Salvador Caetano in South Africa, consists of local people from across a spectrum of the automotive industry who are knowledgeable about local conditions. The operation is run by Salvador Caetano, who is the importer of GAC Motor.

“It might be a good idea to just mention that the company has been operating for more than 78 years in 44 different countries with, among other businesses, importing and exporting numerous vehicle brands across the world.

“In terms of GAC Motor itself, it is the 5^th largest vehicle producer in China and sold 2.5 million vehicles last year. It is also state-owned and known as a manufacturer of high quality and advanced technology vehicles that we believe sets it apart from most others,” Leslie tells Dealerfloor.

“GAC Motor have for many years been the manufacturer of established Japanese brands in China. This contributed to making aspects like reliability and technology part of their manufacturing DNA which augur well for GAC Motor’s own vehicles today.”

Leslie says not only do their vehicles look the part, but they include Level 2 advanced driver assistance systems like partial driving automation. “Another plus point is that our real-world driving fuel consumption figures are very good, not just claimed figures,” he says.

Dealerfloor asked Leslie about the growing number of Chinese brands that are establishing themselves in South Africa, the history of Chinese brands locally and if the vehicle market is not saturated. “The local vehicle market had been overtraded for many years before the arrival of the Chinese brands if you look at the volumes we sell for the number of manufacturers doing business here. That is part of the local automotive landscape.”

Leslie tells us that this time around the Chinese entered the market not only with a price advantage compared to better known competitors, but the average Chinese vehicle today also delivers on quality and value for money. Also adding to that is the dealership set-ups, warehouses and the availability of parts, which make it a very different situation compared to previously.

Asked about the prospects for the local car market, which is battling to show growth, Leslie believes that 2025 will in all probability be a much better year. “The settlement of the political landscape, lower interest rates and lower fuel prices are all factors that could see the market grow 5% to 6% next year. Any steps that leave consumers with more disposable income are good for our industry,” Leslie concludes.