overview of china auto market the largest auto market in 2009 13.6 million vehicles sold in 2009 ...

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AMBITIOUS CHINA AUTOMAKER

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AMBITIOUS CHINA AUTOMAKER

Overview of China Auto Market

The largest auto market in 2009 13.6 million vehicles sold in 2009 10.8 million passenger cars 10 million sold in the US (previously worlds’

largest market) Rapidest light vehicle development

Private car sales 53% higher than in 2008 Large Domestic consumption

Only 369,600 out of 13.6m cars were exported in 2009

Government stimulation Cuts in sales tax for small cars

Insight of China Auto Industry

State-owned enterprise China First Automobile Group Corp.

(FAW) Dongfeng Motor Corp. (DMC) Shanghai Automotive Industry

Corporation (SAIC)

Insight of China Auto Industry

Joint-venture Partly owned by local enterprise, partly

owned by foreign brand Local enterprise provides lands, labor Foreigners provides technologies and

capital Made in China, Sold in China

Insight of China Auto Industry

Joint-venture 3 Giants

SAIC – Volkswagen, General Motor, FAW – Volkswagen, Toyota DFM – Peugeot-Citroen, Honda, Nissan

Others Brilliance – BMW Chang’an – Ford, Mazda

Insight of China Auto Industry

Local brands Since 1994

BYD Auto (1211.HK) Geely Automobile (0175.HK) Great Wall Motors (2333.HK) Brilliance China Auto Roewe Chery

BYD Auto (1211.HK)

Established in 2003 Subsidiary of mobile phone battery

maker (BYD Co Ltd) 448,400 car sales in 2009 1-year return 405.87% Today

130,000 people 8 factories in China One factory each in India, Hungary, and

Romania

Why BYD ?

Why BYD ?

Rapid growth

Why BYD ?

The S.8 Copy of Mercedes-Benz CLK-Class

Why BYD ?

People President – Wang Chuanfu

The wealthiest man in China Since 2009 Buffet described “ he is a combination of

Thomas Edison and Jack Welch” Professional in both technology and

management Famous investor – Warren Buffet

Bought up 10% shares in Dec, 2008 Purchase at $8/share Current $78/share?

Why BYD ?

Model Top selling sedan

F3 (appears like Toyota and Honda) RMB60,000/car

Green Technology Hybrid Car

F3DM The World’s 1st mass-produced plug-in hybrid

vehicle Pure Electric Car

E6 BYD - The World’s largest battery manufacturer

Why BYD ?

Sales (Statistics from CAAM) Top 10 sales automakers (Jan and Feb,

2010) Ranks no.8 95,400

Why BYD ?

The most potential automotive exporter Began to export since 2006 To Africa, South America and the Middle

East in 2009 Plan to enter the European and the US

market High gas price Most promising market for electric cars

Do you believe?

Two Goals Become No.1 in China in 2015 Become No.1 in the world in 2025