2013 Luxury Car Market Research

of China

----A 360 Degree Vision of Current Situation

Zhang Shuang

Agenda

Overview of luxury car market in China

Situation of different brands

Regional Distribution

Consumer Profile

Future Forecast

Definition and Status:

Price : D-class car : ￥ 500,000-2000,000 Super-luxury car : Over ￥ 2000,000 Market share :

China : 8.5% America : 10% Germany: 30%

Market share in China is lower .

Rapid sales increase of luxury cars

Large room for growth in China

2006-2012,Luxury cars sales proportion of passenger cars

Most luxury brands have a better performance in China than its global market

Growth in the global market and China(Jan.-Aug. ,2013)

BMW Audi Benz JLR VOVOL Porsche

-10. 0%

0. 0%

10. 0%

20. 0%

30. 0%

40. 0%

50. 0%

Chi naGl obal

Distribution of brand attention in luxury car market(May,2013)

Benz24.3%

BMW17.4%

VW14.2%

Audi13.7%

Rolls-Royce 13.0%

Jaguar7.3%

Bentley5.2%

Ford1.2%Maserati

1.6%

Lexus1.1%

Others1.0%

German brand won the first four . Benz stands first with a ratio of 24.3%.

Top-3 is still German luxury car brands. However,Benz sales is only half of BMW.

Main luxury cars sales volume in ChinaBrand First half year(2013) First half year(2012) Growing rate

Audi 228,139 193,871 17.7%

BMW 170,700 147,600 15.7%

Benz 98,914 99,391 -0.5%

JLR 42,155 3,6451 15.6%

VOVOL 28,703 21,378 34.3%

Cadillac 19,658 14,616 34.5%

Porsche 18,323 15,274 20.0%

Attention proportion of different prices(Apr.-May 2013)

0. 0%

10. 0%

20. 0%

30. 0%

40. 0%

50. 0%

Bel ow 1 mi l l i on 1-2 mi l l i on 2-3 mi l l i on 3-5 mi l l i on Over 5 mi l l i on

21. 4% 19. 9%

38. 7%

4. 7%

15. 3%

19. 7% 19. 6%

39. 5%

5. 4%

15. 8%

Apr.May.

Luxury cars of 2-3 million yuan is most popular with the luxury car consumer.

Main distribution province of luxury brand (Sales proportion of nationwide)

Over 10%:Beijing,Shanghai,Zhejiang

5%-10%:Guangdong,Jiangsu,Sichuan

2%-5%Inner Mongolia,Shandong,Hebei,Liaoning,Fujian.

Age of Consumers

In 2012,the average age of luxury car consumers is 36. 30 to 40-year-old consumers account for 2/3. Cadillac : 36 ～ 45; Maserati : 35 ～ 45; Ferrari : 36~37.

In 2020, as predicted, consumers of 28-48 may account for over 80% in the luxury cars field .

Attention proportion of different prices(Apr.-May 2013)

0. 0%

10. 0%

20. 0%

30. 0%

40. 0%

50. 0%

Bel ow 1 mi l l i on 1-2 mi l l i on 2-3 mi l l i on 3-5 mi l l i on Over 5 mi l l i on

21. 4% 19. 9%

38. 7%

4. 7%

15. 3%

19. 7% 19. 6%

39. 5%

5. 4%

15. 8%

Apr.May.

Luxury cars of 2-3 million yuan is popular with the luxury car consumer.

Chinese luxury car users is divided into five groups

Brand Backbone

Brand Backbone Type:Mainly Male(30-39).Attention on orgin and property.

Cutting-edge Technology Type:Mainly Male(30-39).Willing to try the advanced features and technology.

Business Leaders Type:Successful business owners or senior executive(35-45).Attention on social identity and comfort.

Sagacity Type:High percentage of women (25-35).Care about luxurious figure and cost performance most.

Image Supreme Type:30-39.Emphasis on representing personal identity and image.

Cutting-edge Technology Business

Leaders

Sagacity Type

Image Supreme

Consumption Custom and Preference

54.6%

37.4%

1.8%

6.2%

Concerned Factors

43.2%

26.9%

17.2%

11.9%

0.9%

Customers care about the power and technology , as well as the history of luxury brand.

Means of Purchase

80. 80%

6. 50%6. 10%3. 30%2. 30%1. 00%

4S Stores

Car Trade MarketAcquaintanceNetwork Subscription

Motor Show

Others

Chinese choose the 4S stores as the main means to buy cars.

Motor Show and Car Trade Market take the second place.

Future Forecast: world's largest super-luxury car market.

• Business consulting firm suggests that Chinese super-luxury car market sales growth benefited from China's increasing number of high net worth individuals.

• From 2006 to 2011 , the number of this population has tripled, and reached 1 million in 2012 . Nearly 63,000 of them are ultra-high net worth individuals (with net asset over 100 million yuan ), which is one of the most promising super-luxury car buyers.

• Meanwhile, started from 2009, buying super-luxury cars has been included in the planning of Chinese billionaires.

• As expected, with steady economic recovery, the number of high net worth individuals will be further enhanced.

• Meanwhile, because the super-luxury car market is largely unaffected by the government procurement, and the client's brand awareness, loyalty and continued spending power are strong,it is expected in 2017 ,China will become the world's largest super-luxury car market.

Thank you! Zhang Shuang

2013/11/12