Why Are Haval Cars So Cheap In Australia?

Thinking about buying a new or used Haval car? In this guide, we’ll be going into detail about why these cars are so cheap and whether it’s worth purchasing. Haval entered the Australian market in 2015 and is owned by GWM (Great Wall Motors), one of the top car manufacturers in China. It’s well known as a budget-focused brand, but still struggles to gain a foothold in the Australian market.

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Factors That Affect The Price Of Havals

Budget Focus: Haval, a Chinese automotive brand, entered the Australian market with a focus on affordability and value. By positioning themselves as a budget-friendly option, Haval cars aim to appeal to cost-conscious consumers looking to save money. According to AutoExpert sales numbers are still weak in Australia at only 2894 in 2020. While this number is growing Haval employs a heavy discount strategy in order to gain more market share from more established players.

Production Cost: Haval benefits from economies of scale due to its parent company, Great Wall Motors, being one of China’s largest automotive manufacturers. As well as this, they can benefit from the lower labour and material costs available in China. Leveraging their car production capabilities, Haval can produce cars more cost-effectively, resulting in competitive pricing for consumers.

Reduced Overheads: Compared to established brands with extensive dealership networks and overhead costs, Haval operates with leaner operations in Australia. By minimizing overhead expenses, such as marketing and distribution costs, Haval can pass on these savings to consumers in the form of lower prices. However due to having a smaller Haval dealer network the level of service is lower than with more established brands.

Low Brand Perception: Despite offering affordable options, Haval may face challenges related to brand perception and image. Some consumers may perceive Haval cars as inferior or lacking in quality compared to more established brands. As well as this low safety ratings and issues with lane assist and other technology on older Haval models have further hurt the brand.  The old perception of ‘lower quality’ Chinese goods is still persistent when it comes to the Haval brands.

Depreciation and Resale Value: Due to factors such as brand perception and a limited dealer network, Haval cars experience higher depreciation rates and lower resale values compared to established brands.

Should You Buy A Haval?

Pros:

• Affordable pricing compared to other similar cars, for example in the midsize 4WD category, the Jolion Premium is only $27,990 compared to the Corolla Cross GX which costs $36,800. That’s almost a $9000 saving.
• Many Haval owners praise the car brand for its features such as cruise control, lane keep assist and comfortable seats
• Simple and low key design that won’t stand out, though this may be a con for those looking for a more flashy car
• 7 year warranty on most models

Cons: 

• According to multiple customer reviews Haval suffers from a number of quality control issues. Here’s what one customer had to say: “…the price tag comes along with sacrifice in quality and cutting corners, it’s very prone to breaks and maintenance requirement…”. Common issues include dashcam connectivity issues, refrigerant leaks, check engine light problems, and brake malfunctions.
• Haval has a limited dealer network, meaning that you’ll have to travel further for routine maintenance or repairs
• The quality of exterior materials is also lacking, even though they appear to look good on the outside
• Due to the above issues Haval lacks brand prestige, so if that’s an important factor, we wouldn’t recommend purchasing it

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