Lee Marshall: Motor Trade Association CEO on the potential for China to overtake Japan as our largest source of car imports

China could soon overtake Japan as our largest source of car imports. 

A new report from the Motor Trade Association shows sales of new Chinese models is doubling each year. 

That's due in part to more sales of electric vehicles, which are forecast to make up half of all new light vehicle registrations by 2035. 

MTA CEO Lee Marshall told Mike Hosking as long as price talks, it’ll start to influence where cars are coming from. 

He says price is a loud consideration in the value equation, and although it’s by no means the only one, it’ll continue to talk. 

LISTEN ABOVE 

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
A couple of things. General sales were improving on last year.

(00:02):
Good too. The Chinese have arrived in numbers so much
so it could mean a major shift in the makeup
of our fleet. Chinese cars now make up twenty one
percent of the new passenger market. Lee Marshall's the boss
of the Motor Trade Association and as with us, Lee Morning.

Speaker 2 (00:14):
Good Morning.

Speaker 1 (00:15):
Is this sheer luck given the war for the Chinese
amid that ev panic. Basically, China had a shedload of
stock and they are happy to sell it to the
rest of the world.

Speaker 2 (00:26):
I think it's more than that. There are certain the
advantages that the Chinese have in terms of the cost
that they can produce product. Where for as long as
price talks, and I don't think it ever won't, it
will start to influence where vehicles are coming from.

Speaker 1 (00:40):
Yeah, how much does price talk in this New Zealand
market at the moment? I mean, if it is pure price,
they can't lose, can.

Speaker 2 (00:46):
They If it's pure price, they can't lose. But then
most people are smart enough to realize that there's more
to consider when buying a car. It's not just about
the upfront cost. It's about the support of it. It's
about the ability to maintain it, the availability of parts
for it, how well known it is in the market.
I think there are lots of considerations, prices allowed consideration

(01:11):
in the in the value equation, but I think it's
it's by no means the only one. But you know,
I think it will continue to talk. See, you wouldn't
touch it.

Speaker 1 (01:20):
I wouldn't touch it. I mean, maybe BYD because they're
a name, maybe g Lee because they're a name, But
the rest of them I wouldn't touch with a barge poll.
I've got no idea who they are, no idea whether
they're going to last another three or four years, and
who I go sell it to when they are not
here anymore. I mean, does no one take that into account?

Speaker 2 (01:36):
I mean, I think, of course people do take that
into consideration. But then I think it's worth considering that
with many of these brands, they may be unknown here,
but they're certainly not unknown in China. There may be
only twenty five of whatever particular new car in New
Zealand right now, but there may be one hundred thousand
of them in China. I mean, I think you're right

(01:58):
that not all of these companies will stand the test
of time. They are going through a process of consolidating
in that industry. But but equally, I don't think there's
any reason to believe that these vehicles will not be
supportable in the future. Interesting people have had these considerate,
you know, concerns in the past. But you know, and
people people will always wonder, will we just see these vehicles,

(02:20):
you know, parked up on the side of the road
or whatever, because no one can fix them. But you know,
people have said that before lots of times, and it
never happened. It's a resourceful industry that invariably does work
out how to maintain them.

Speaker 1 (02:32):
Good stuff. Lynd nice and so I appreciate it very much.

Speaker 2 (02:34):
As for more from the Mic Asking Breakfast, listen live
to news talks it'd be from six a m.

Speaker 1 (02:39):
Weekdays, or follow the podcast on iHeartRadio.