Why cut-price cars could be on the way

An auto giant with an eye for expansion could be preparing for launch in Australia, giving buyers on a budget a fresh option.

GAC has big plans for its GS3 compact SUV.

China’s GAC Group has started exporting right-hand-drive cars to Malaysia in a move that could open the door to Australian sales.

Though the manufacturer is not a household name outside its home territory, the GAC Group builds more than two million cars a year, putting it close to the likes of BMW and Mercedes on the global bestseller list.

The GAC GS3 compact SUV has entered production in right-hand-drive.

GAC says the debut of its first right-hand-drive GS3 compact SUV is “another milestone in the group’s international business”, and that “GAC Group looks forward to producing many more internationally optimised vehicles, bringing the power of Chinese craftsmanship to consumers”.

Malaysia’s new cat market records around 500,000 sales each year, roughly half Australia’s annual total.

The model is also sold in the Middle East.

The brand says its investment in the right-hand-drive GS3 is significant, including upgraded safety and entertainment features as well as revised looks to accompany mechanical changes.

While GAC has not announced plans to expand to Australia, the company is no doubt paying close attention to the success of Chinese brands such as MG and GWM that represent some of the fastest-growing marques on sale.

In a market that has grown by about 18 per cent in the last year, sales of GWM and MG are up by 267 and 168 per cent.

The GAC GS3 now available in right-hand-drive is a compact crossover similar to the Mazda CX-3.

GAC might look to replicate the success of MG in Australia.

It undercuts the Mazda by more than $1000 in the UAE.

Power comes from a 1.5-litre engine with 84kW/150Nm, or a turbocharged 1.3-litre unit with 101kW/202Nm.

Full details for the export-ready model have not been confirmed, though it is likely to feature modern infotainment with smartphone mirroring, along with driver assistance tech to help woo customers away from established brands.

Originally published as Why cut-price cars could be on the way