Update: May 29, 2020: Chinese-built Snowy River caravans have been available in Australia since 2015, not long after its Chinese-Australian owner took over long-term Australian brand Regent caravans.
All Regent caravans are fully built in Australia at the same Somerton, Victoria production facility where final assembly of Snowy River caravans takes place. Whereas the Regent vans are built from the ground up at the Melbourne factory, the Snowy River vans arrive in Australia from China in shipping containers about 70 per cent complete.
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A new range of Chinese-built caravans – initially flat-pack assembled and perhaps later fully imported – are set to become a future force in the Australian caravan industry following the recent purchase of the 30-year old Regent brand by the giant Chinese RV Daide Group.
Negotiations for the sale were still being finalised at the time when site bookings were still being taken for this week’s Melbourne Leisurefest and it is believed that Regent missed the cut-off date.
It's the first time that Regent has missed a major Australian caravan show since it was in early 2012 from post-GFC receivership‘rescued’ by the then newly-formed Caravans Australia.
The CA Group has since begun fracturing, with Bailey Australia going its own way with majority British ownership mid this year and major CA shareholder Stan Guthrie now selling the Regent and Legacy brands to concentrate on his Austral chassis, Manumatic Industries' OE and aftermarket automotive exhaust-manufacturing operation and Opposite Lock retail 4WD accessory businesses.
However it’s understood that Guthrie will remain a Regent dealer through his Newcastle, NSW-based Macquarie Caravans operation, at least in the short term.
The move into Australia was not completely unexpected from the Zhejiang Daide Automobile Co, which was founded in 2013 in the Chinese economic development zone of Tongxiang City, 110km east of Shanghai, with the aim of "building up world's RV production base and China's RV manufacture capital".
It plans to establish two recreational vehicle production lines in on its 130 hectare base in China’s Zhejiang Province, producing 10,000 RVs by the end of 2014, and growing production in the following five years with 6000 motorhomes and 4000 camper trailers per annum.
As part of its R&D centre, it has also acquired facilities to create a $4 million test track to test and develop Chinese-manufactured motorhomes, camper trailers and now, presumably caravans, for the world market.
The Daide-Regent connection was made by accident, when Guthrie called into Regent’s factory in Campbellfield, Melbourne only to find the place abuzz with talk that Chinese businessmen were in the area enquiring about purchasing a caravan manufacturing business.
“I tracked them down and invited them over,” said Guthrie. “They immediately liked what they saw and the deal was already done in principal not long afterwards.
"However if I hadn’t called into the factory that morning it might never have been, as they had four other caravan manufacturers on their shopping list.”
Guthrie was reluctant to give specific details, but Daide is expected to continue Regent van production at the Somerton Drive factory. But given the company’s immense resources, it seems only a matter of time before fully built, Chinese made caravans from Daide's Chinese production facilities arrive in Australia.
With its experience in motorhome building, Daide is keen to implement more modern, lightweight designs and in the long-term this may challenge the current monopoly held on these designs by European caravan manufacturers that are now represented in record numbers on the Australian market.
It’s not the first time that the Chinese have attempted to ‘invade’ the Australian RV market.
Chinese-made camper trailers have decimated the lower end of the canvas and now hard-floor camper market and a Chinese-made Exclusive Caravan was displayed at the Brisbane Caravan Show as long ago as 2011.
Deeson RV followed in 2012 with vans 70 per cent complete shipped to Australia, while Goldstar RV made its debut at this year’s South Australian Caravan & Camping Expo, with starting prices for its full ensuite vans starting at less than $40,000.
What makes Daide’s move on Regent more relevant is the size of the Chinese Group behind it and its stated global mission to become one of the world’s largest RV players.
Australian manufacturers should be advised to remain alert, but not alarmed with some large players already canvassing joint venture agreements to head off the challenge.