Changing landscape

Local car dealers foresee evolving market as existing brands ready to compete with Smart car as well as models from China, India

AP

The Roewe 750 from Shanghai Automotive Industry Corp. is one of dozens of car and truck models manufactured by Chinese automakers looking to expand globally, including to North America and eventually, local dealers say, to the Charleston area.

Local car dealers foresee evolving market as existing brands ready to compete with Smart car as well as models from China, India

Local car dealers foresee evolving market as existing brands ready to compete with Smart car as well as models from China, India

You would think Charleston area auto executives have enough competition, with 38 brands from a half-dozen countries being sold in the market. Well, get ready to add a few more monickers and at least two more venues, China and India.

So say car dealers who participated in a panel discussion last week before the Mount Pleasant Business and Professional Association.

"The U.S. car market is the largest in the world," says Brad Davis, general manager of Hendrick Imports in Charleston. "You want to be where the fish are biting."

Graham Eubank, president of Palmetto Car & Truck Group, is up to speed on the interest in America shown by Asian countries that haven't exported to the U.S. before in a major way.

At least four Chinese companies have talked about coming: Changfeng Motor Co., Geely Automobile Holdings Group, Great Wall Motor Co. and Chery Automobile Co. Also, U.S. manufacturers have partnerships in China, such as General Motors with the Shanghai Automotive Industry Corp.

"We dealt with Chery Automotive the last two to three years, bringing in vehicles from China," Eubank said. "The deal fell apart."

Still, he said, "There is going to be a Chinese manufacturer come into the U.S. in the next year. I'm not sure on the quality at first. What you'll see is small compacts. China will get the quality (in the future)."

Eubank added, "India will be bringing vehicles in. They're very good at diesel technology."

Indian carmaker Mahindra & Mahindra Ltd. has disclosed it is looking to import a pickup truck and sport utility by next year, reportedly via Alpharetta, Ga.-based Global Vehicles USA Inc. Luxury Cars of Charleston, which is in a network of 135 dealerships lined up by Global Vehicles, has said it would market the Indian models if distribution plans go forward.

"Those (China and India) are the two I see coming in next," Eubank said.

Meanwhile, the Smart car, a long-anticipated mini-compact from Daimler AG, is expected to export to the U.S. in the next year or so, including through Mercedes-Benz outlets.

"Rumor has it" that Baker Motor will be a local Smart dealer, quipped Chief Executive Tommy Baker, whose company has the local Mercedes franchise. "It's a niche car," he said. "The price is right, $12,000 to $17,000."

With fuel economy a big issue, the models get 40 mpg. "You can park it on a curb," Baker said. "We'll sell what we can get."

The four panelists took questions for close to an hour from association members on a range of automotive topics, including congressional plans to raise fuel economy levels.

"The average commute is 30 miles a day. GM has a concept, the (battery-powered) Volt that can go 40 miles a day," said Doug McElveen, owner of McElveen Pontiac Buick GMC Hummer in Summerville and McElveen Chevrolet Hummer in Mount Pleasant.

Even so, there are lots of buyers who make purchases based on needs or wants rather than fuel savings.

"I drive a truck," McElveen said. "I have applications for it. You can't pull a boat with an electric car, I don't think."

Reach Jim Parker at 937-5542 or jparker@postandcourier.com.