For the complete report, get in touch with us at : info@netscribes.com Automotive industry has become a leading industry in China's national economy and is playing a guiding and supporting role in the overall national economic situation. It is one of the fastest growing and competitive industries in China.

1. Automotive Market – China
August 2011

2. Executive Summary
Since China joined the Organization 1, x years ago, its automotive industry has accomplished its
most outstanding and fastest development in its history
Market Annual double digit percentage sales growth, nearly y%, has been achieved in the automobile sector from
20-- to 20--
China is the largest automaker in the world
LE
Drivers: Challenges:
P
Huge population and low penetration Unstable market position of each manufacturer
Rising urban middle class population Overcapacity
M
Drivers &
Growing luxury car market Restrictions imposed on car ownership
Challenges
SA
Auto dealers to open more outlets
Improved public transport infrastructure
Availability of low-cost skilled labour
China promotes alternative energy vehicles
Reduced prices led by intensified competition
High dependency on depleting oil reserves
Trends Increasing market share of the domestic OEMs
OEMs are expanding through mergers and acquisitions
Support Programs of the Government 20-- - 20--
Government
zth Five-Year Plan for the Automotive Industry
Initiatives Government initiatives for EVs
Market comprises of a large number of domestic players as well as foreign players mainly
through JVs with their domestic partners
Competition
Some of the major players in the market company 1, company 2, company 3, company 4,
company 5, company 6, company 7, company 8, company 9, company 10, company 11 etc.
AUTOMOTIVE MARKET IN CHINA 2011.PPT 2

3. •Market Overview
•Export-Import
•Drivers & Challenges
•Trends
•Government Initiatives
•Competition
•Key Takeaways
AUTOMOTIVE MARKET IN CHINA 2011.PPT 3

4. China is the largest auto maker in the world
Automotive Market – Overview Growth of Automobile Production
• Automotive industry has become a leading industry mn units
a6
in China's national economy and is playing a guiding 30
p% a5
and supporting role in the overall national economic 25
20 a4
situation
LE
15
a3
• China surpassed country 1 to become the world's No. a1 a2
10
MP
x vehicle market in 20-- and passed the United States
to be the biggest in 20--
5
0
20-- 20-- 20-- 20-- 20--e 20--e
SA
Automotive Market Segments Annual Auto Market Segment (Sales)
mn units Sub-segment 1
Sub-segment 2
Automotive 15 b7
b5
10
Segment 1 Segment 2 b3
b1
5 b8
b2 b4 b6
Sub-segment 1 Sub-segment 2
0
20-- 20-- 20-- 20--
Source:
AUTOMOTIVE MARKET IN CHINA 2011.PPT 4

5. Automobile manufacturers earn revenues by exporting their
products to various countries around the world
Growth in Total Imports Country-wise Imports (20--)
USD mn
40,000
e6% Country 1
c5
LE
30,000 q% e5% Country 2
e1%
e4% Country 3
20,000
10,000 c1
c2
c3 c4
MP e3% Country 4
Country 5
A
e2% Others
S
0
20-- 20-- 20-- 20-- 20--
Growth in Total Exports Country-wise Exports (20--)
Country 6 Country 9 Country 12 Country 15
r%
USD mn Country 7 Country 10 Country 13 Others
15,000 d3 Country 8 Country 11 Country 14
d2 d5 f1%
10,000 d4 f2%
d1 g5% f4%
Region 1 f3%
5,000 g1%
Region 2 g4% f5% f6% f7%
Region 3 f9% f8%
0
Region 4 g3% f11% f10%
20-- 20-- 20-- 20-- 20-- g2%
Region 5
Source:
AUTOMOTIVE MARKET IN CHINA 2011.PPT 5

6. Drivers & Challenges – Summary
Challenges
Drivers Unstable Market Position of Manufacturers
Huge Population and Low Penetration Overcapacity
Rising Urban Middle Class Population Restrictions Imposed on Car Ownership
Reduced Prices Led by Intensified
Growing Luxury Car Market
Competition
Auto Dealers to Open More Outlets High Dependency on Depleting Oil Reserves
Improved Public Transport Infrastructure
Availability of Low-cost Skilled Labour
AUTOMOTIVE MARKET IN CHINA 2011.PPT 6

7. Summary – Trends
China promotes
alternative energy
vehicles
Trends
OEMs are expanding
Increasing market share
through mergers and
of the domestic OEMs
acquisitions
AUTOMOTIVE MARKET IN CHINA 2011.PPT 7

8. Major Domestic Players in the Market (1/10)
Company Snapshot: Company 1
Corporate Information Financial Performance
Headquarters City 1 Revenue Revenue Profit
USD mn USD mn
Profit / Loss
Founded 19--
5,000 a4 800
4,000 600
Commercial and passenger vehicles, auto a3
Products 3,000
components a1 a2 400
2,000
Key People Person 1 – MD 1,000 200
0 0
20-- 20-- 20-- 20--
Business Highlights
LE
• Company offers type 1 vehicles, type 2 vehicles,type3, type 4, type 5, type 6,type 7, type 8, and other components, as
well as light, medium, and heavy-duty type 9 and it also provides special vehicles, including type 10, such as type11,
type 23 vehicle
MP
type 12, and type 13; and type 14, which include type 15, type 16, type 17, type 18, type 19, type 20, type 21, and
• In Jul 20--, it is reported that the company is planning USD x mn investment together with subsidiary company 2
SA
• Company 2 will spend USD y mn on a R&D capability upgrading program on DCT automatic transmissions and company 1 will spend
USD z mn on auto body mold fixtures of type 24 and USD w mn on auto body mold fixtures of type 25
• In Dec 20--, company announced that it plans to set up type 26 Car Branch
Source:
AUTOMOTIVE MARKET IN CHINA 2011.PPT 8

9. Other Major Domestic Players in the Market (4/5)
Company Snapshot: Company 2
Corporate Information Business Highlights
Headquarters City 2 • It manufactures type 8 and type 9, including light
type 10 and type 11, type 13 and type 14 vehicles
Founded 19--
• It started construction of a new manufacturing
Products
Type 1, type 2, type 3, type 4 and base in Zengcheng
development, type 6
E
• Company expects to finish the first phase of the
L
manufacturing base, which has an investment of up to
Key People Person 2 –President
P
USD x mn, by the end of 20--
• New plant will mainly produce its own-brand vehicles,
M
including type 15, type 16 and other type 17, and will
A
eventually have an annual production capacity of y
S
vehicles
• In 20--, BAIC inaugurated a new plant in Zhuzhou,
Hunan province and rolled out its first own-brand
automobile, the brand 1
Planning to buy a type 7 plant with its joint venture
partner, the motorcycle maker company 3
Source: Press Articles; Company Website
AUTOMOTIVE MARKET IN CHINA 2011.PPT 9

10. Thank you for the attention
Automotive Market - China report is a part of Netscribes’ Automotive Industry Series.
For more detailed information or customized research requirements please contact:
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