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SINGAPORE-BASED motor group Tan Chong International has secured a Chinese car distributorship for five countries, despite misgivings about China-made vehicles. The company, known for its Nissan and Subaru franchises, has clinched the rights to represent Changan Automobile in Singapore, Indonesia, Thailand, Vietnam and the Philippines. Executive director Glenn Tan told The Straits Times this week that he is confident Changan cars will pass muster here. The first model will be the Honor seven-seater, which Mr Tan said is likely to be priced at the same level as an entry-level Toyota Vios subcompact. "I've seen the car, and it's pretty well-made. Not up there with the Japanese, but certainly better than most Chinese cars," he said. Mr Tan said the deal came about because Hong Kong-listed Tan Chong, or TCIL, makes car seats for Changan in China, and it was the Chinese company that "approached us". Several Chinese manufacturers are stepping up their export drives to counter a cooling domestic market, said observers. Changan is state-owned - its parent is part of the Chinese military - and ranks as one of China's top carmakers. It has 15 plants in Chongqing, Beijing, Jiangsu, Hebei, Zhejiang and Jiangxi that can produce two million vehicles and two million engines a year. The firm also has research and development facilities in Turin, Yokohama, Nottingham and Detroit. Its website says it has assets of 68billion yuan (S$13billion) and nearly 50,000 employees. Mr Tan said newly formed subsidiary TC Changan will start up in Indonesia this week, in Thailand in November and Singapore by the end of next year. He said Indonesia and Thailand will be its biggest markets, as budget multi-seaters are popular there. So are small vans and trucks, which Changan makes too. "We hope to get a small slice of the big pie there," Mr Tan said. He said an expanding certificate of entitlement supply in the coming years will pave the way for Changan's penetration in Singapore. Operations in Vietnam and the Philippines will start in the first quarter of next year, with the 1.6-litre Eado sedan, launched at the Beijing Motor Show in May. Mr Tan expects annual sales in the five markets to hit a total of 10,000 units "in four to five years". There have been doubts raised in several markets in recent years over the quality of Chinese cars, but Mr Tan was certain Changan was different. "We make seats for them, so we know they have quality standards," he said. "They won't just take anything you give them." Elsewhere, TCIL's expansion plans are gathering speed. Its Subaru franchise in 10 markets will sell 15,000 cars this year, and its Fuso truck business in Thailand will see sales doubling this year. Assembly of the Subaru XV sports-utility vehicle in its Malaysian plant starts in December. It will supply cars to Malaysia, Thailand and Indonesia. For the first half ended June30, TCIL's net earnings more than quadrupled to HK$415.5million (S$65.6million), despite a 6.5 per cent fall in revenue to HK$3.08 billion. Profit was boosted by an increase of HK$175.7 million in the fair value of listed investments and a one-time gain of HK$74million from the sale of a tyre joint venture in China. http://cars.st701.com/articles-cars/motori...se-cars/a/85051 The first model will be the Honor seven-seater