Dual distributor plan for latest big Chinese car make?
/Dongfeng has set up with a NZ distributor but a high-profile subsidiary might be set to take a different route.
MIGHT another of China’s larger automotive manufacturers be putting a dollar each way with its distributor choices in New Zealand?
With China clearly established as the pace-setter for technology rollout with affordable cars, automotive brands from there with exporting on their minds are turning into hot property.
NZ enterprises keen to cash in on what they see as a potential boom appear to be scrabbling for distribution rights.
Sixteen Chinese passenger and light commercial makes are already here and some in the industry believe the count will be up to 30 by end of 2026.
Recent arrival of Dongfeng means all the largest operations by volume, most of them state-owned, are now here.
Among others are MG, BYD, GWM (formerly Great Wall Motors), LeapMotor, Geely, LDV and Chery.
Dongfeng is a massive and internationally fast-rising enterprise - with 2.4 million sales in 2024 - and its global push also involves its ambitious sub-brands.
When it launched the NZ operation last month, mention was made of luxury-aimed Voyah and off-road specialist Mhero, which both have export aspiration with electric fare.
Another expected to precede those is Forthing, which makes electric and electrified sports utilities; the primary export product being the medium sized Friday.
As Dongfeng’s distributor, Armstrong’s Distribution Limited appeared in the box seat for Forthing. Earlier this year it had a Friday here for assessment.
However ADL chief executive Simon Rutherford has revealed his operation doesn’t have rights, stating today: “I can confirm we will not be distributing Forthing - I am not sure who is in NZ.”
Media in Australia believe they know the answer, from having interviewed Forthing’s regional management.
Interpretation of the Chinese comment made over the past two months is that Ateco Automotive is the preferred distributor for Australia and here.
Auckland-based Ateco NZ has yet to respond to request for comment.
In Australia, an Ateco spokesperson when asked for comment, reportedly said: “The Ateco Group is regularly in discussions with emerging and existing brands regarding the distribution of motor vehicles in Australia and New Zealand, but does not comment on discussions, proposals or speculation.”
ADL and ADL are both large-scale multi-franchise enterprises and compete directly; each is in the hands of high-profile industry figures.
ADL is owned by Christchurch industry identity Rick Armstrong. Ateco was created by Neville Crichton, a Kiwi now resident in Australia.
Until ADL achieved Dongfeng, its China product focus was with LeapMotor, which umbrellas internationally under Stellantis, whose European products - Opel, Peugeot and Citroen - are in ADL’s hands. But whose US portfolio - Jeep, RAM and Chrysler - and also Alfa Romeo is with Ateco.
Ateco’s China asset is BYD, which became a big name overnight by entering here in 2022 with the Atto 3, then seen as a perfect-prized electric product when battery cars were all the rage.
The EV sector has now slumped, but one current common ADL and Ateco intent is to re-ignite interest by offering product at unprecedented low pricing.
They are going head-to-head now with the Atto 1 and Dongfeng Box, small hatches that at $29,990 apiece hold joint status as the country’s cheapest new EVs.
As much as Forthing itself has said it wants to start slow in Australasia, potential for the Friday ruffling up the medium sector seems possible.
Forthing’s management says it wants to front with that five-seater in electric and range-extender plug-in hybrid versions to compete with other cars from China that directly compare.
They include the Geely EX5, sold by NordEast, another new entity established by the Giltrap Group, whose founder - the late Sir Colin Giltrap - was another legend of the NZ automotive scene.
The Friday produces with two battery sizes. In Europe it already sells with an 86kWh battery and a single 150kW/340Nm front electric motor for a claimed 371km driving range in European WLTP testing. It also appears to provision with a 64.4kWh lithium iron phosphate battery.
Due to follow the Friday is the U-Tour, a mid-size people mover planned to offer plug-in hybrid and electric power, even though it is not currently sold with either.
Forthing becoming a focus for Ateco could also be timely with BYD going through expansion plans, starting with its Denza premium brand. Denza is also imminently inbound for NZ, but as a factory operation without a NZ intermediary. It has recently begun a pre-launch campaign, mainly in social media.
