Shanghai-made black taxis hit HK

Shanghai-made black taxis hit HK
Neil Gough
488 words
19 October 2010
South China Morning Post
After nearly a decade of planning, the first Shanghai-made London taxis finally hit the streets in Hong Kong as part of the Grand Hyatt's private fleet. But their distributor is revving up to give Toyota a run for the money in the commercial taxi market.
"Toyota has a monopoly on the taxi market but there should be an alternative," said Eric Wong, the chairman of Richburg Motors. "What better second choice for Hong Kong taxis than the London taxi?"
Toyota's LPG-fuelled Crown cars, exclusively distributed by Crown Motors, account for 99 per cent of the fleet of 18,138 taxis.
Richburg, a parallel importer of several Japanese brands, is the exclusive Hong Kong and Macau dealer for the mainland-made London black taxis. The taxis were put into commercial production in Shanghai in small volumes last year by a mainland-controlled partnership between Zhejiang-based Geely Automobile Holdings and London-listed Manganese Bronze Holdings.
Richburg has worked with Geely to launch an LPG-powered version of the black taxi that Wong hopes can take a run at Toyota's Crown in the local taxi market, pending approval from the Transport Department.
The London taxi retails as a private car for HK$298,000, including first registration tax and about HK$90,000 in import duties. Wong thinks the price could drop to HK$200,000 for bulk purchases, if the model is approved by the government for use as a public vehicle.
Toyota's four-seat Crown Comfort sells for about HK$240,000, including a first registration tax of about HK$9,000, Crown Motors spokeswoman Kassidy Yong said yesterday.
Crown is owned by London-listed vehicle retailer Inchcape, which has a history in East Asia and India dating back to the 19th century.
"We always welcome new competitors, which fosters a positive and healthy business environment," Yong said.
Richburg has sold only 10 units of the petrol-powered model so far - two to Hyatt, one to Macau casino operator Galaxy Entertainment Group and the rest to private buyers. But Wong plans to move a further 90 mainland-made units in the coming months.
"Some people ask about quality concerns but I say look at the iPad and the iPhone - those are made in China and the quality is quite good," Wong said.
Grand Hyatt concierge manager Jake McHugh, whose hotel has operated four British-made, diesel-powered London taxis for about two decades, said he spent the past year trying to buy two of the new Shanghai-made models. The mainland plant has been operating for more than two years but petrol-powered versions became available only recently.
The hotel uses the spacious five-seat taxis as shuttles for guests, but they are also proving popular for weddings because "few vehicles offer so much room to accommodate bridal dresses", McHugh said.