USED-CAR dealers are cautious about importing Chinese-manufactured vehicles but Jetcon Corporation has decided to get its feet wet first with the new Beijing X55, manufactured by Beijing Automotive Industry Corporation (BAIC).

The vehicle produced by one of China’s leading automobile manufacturers is an eye-turner for those looking for a vehicle that is both affordable and has a luxurious feel. Jetcon Corporation recently revealed BAIC’s new 2023 X55 model which drives into the SUV market as well.

“Their cars have been here before, but [for this] particular model we are the first,” said Andrew Jackson, managing director of Jetcon Corporation, while speaking with the Jamaica Observer.

To other used-car dealers, this might seem like a risky move given that the Jamaican market comprises predominantly of used Japanese car buyers. However, for Jackson, “We’re very confident that it will sell.”

His view on the import of Chinese vehicles is more forward-thinking. “The whole pandemic has changed up the whole marketplace in some regard. When you observe on the road you notice quite a few Chinese branded cars on the road now — trucks and cars,” he said.

In 2020, there was a huge shortage globally for new cars which affected the availability of used cars and pushed both the price of used and new cars up. Jackson believes the shortfall resulted in the need for dealers to look to other countries to supply the market, and he says it is not a strange phenomenon to shift suppliers.

“What has happened is that six years ago there was a shift in assorted cars coming in Jamaica from England to Japan, so we’re shifting, moving from Japan to China. China is one of the largest manufacturers of cars in the world right now, so there’s a shift that is taking place and the pandemic has assisted in accelerating that shift,” he said

Although there has been a slight improvement in the supply of vehicles and prices are easing down, the spike in interest rates resulted in car sales plummeting.

“We have seen a trend since last year where the market for cars has declined significantly, probably as much as 40, 50 per cent, primarily due to the increased interest rate,” said Jackson.

Jamaicans are more searching for cost-effectiveness in this high-interest rate climate and recently, Korean-manufactured vehicles like the Kia have slowly seeped into the market offering affordability. Chinese-manufactured vehicles might just offer the same.

“It has always been part of our long-term vision for the company. We see China as the next frontier of importing vehicles; it’s a fantastic car,” Jackson asserted.

He added that electric cars are also tipping the scales towards Chinese-manufactured vehicles as China is the largest manufacturer of electric vehicles. But these cars are generally imported new and the market is still predominantly a used-car market.

According to Jackson, on an annual basis, 80 per cent of the cars imported are used because that is what Jamaicans can afford. This is why some used-car dealers are cautious about importing new Chinese-manufactured vehicles.

“Until a vehicle actually hits the used-car market, which is the masses, the masses are what define a market, not new car sales. Until we actually see that happening, that’s when we will see a shift per se. Same thing with electric vehicles: those are mostly being sold brand new. They haven’t entered our used market as yet,” shared Moaz Malik, marketing manager of Carland Investments.

Malik believes it will be years before the Jamaican market shifts from Japanese cars to Chinese cars, but for Jetcon, it’s looking for the key to drive ahead of the competition.