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