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Automotive Market China

August 2011

Executive Summary
Market
Since China joined the Organization 1, x years ago, its automotive industry has accomplished its most outstanding and fastest development in its history
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 Drivers: Huge population and low penetration Rising urban middle class population Growing luxury car market Auto dealers to open more outlets Improved public transport infrastructure Availability of low-cost skilled labour

Drivers & Challenges

Trends Government Initiatives Competition

China promotes alternative energy vehicles Increasing market share of the domestic OEMs OEMs are expanding through mergers and acquisitions Support Programs of the Government 20-- - 20-zth Five-Year Plan for the Automotive Industry 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 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

LE P M A S

Challenges: Unstable market position of each manufacturer Overcapacity Restrictions imposed on car ownership Reduced prices led by intensified competition High dependency on depleting oil reserves

Market Overview Export-Import Drivers & Challenges Trends Government Initiatives Competition Key Takeaways

AUTOMOTIVE MARKET IN CHINA 2011.PPT

China is the largest auto maker in the world


Automotive Market Overview
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 China surpassed country 1 to become the world's No. x vehicle market in 20-- and passed the United States to be the biggest in 20--

Growth of Automobile Production


mn units
30 25 20 15 10 5 0

a6 p% a4 a3 a1 a2 a5

Automotive Market Segments

LE P M A S
Automotive Segment 2 Sub-segment 2

20--

20--

20--

20--

20--e

20--e

Annual Auto Market Segment (Sales)


mn units
15 10

Sub-segment 1 Sub-segment 2 b5 b7

Segment 1

b1
5

b3 b2 b4 b6 b8

Sub-segment 1

20-Source: AUTOMOTIVE MARKET IN CHINA 2011.PPT

20--

20--

20--

Automobile manufacturers earn revenues by exporting their products to various countries around the world
Growth in Total Imports
USD mn
40,000 30,000 20,000 10,000 0

Country-wise Imports (20--)


Country 1 Country 2 e1% Country 3 Country 4 Country 5 e2% Others

q% c3 c1 c2

20--

20--

20--

Growth in Total Exports


USD mn
15,000 10,000 5,000 0

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c4 20-20-d5 d4 20-20--

c5

e6% e5% e4% e3%

Country-wise Exports (20--)


Country 6 Country 7 Country 8 Country 9 Country 10 Country 11 Country 12 Country 13 Country 14 Country 15 Others

r% d3 d2 d1

Region 1 Region 2 Region 3 Region 4 Region 5

g5% g4% g3% g1% f11%

20--

20--

20--

g2%

f1% f2% f4% f3% f5% f6% f7% f9% f8% f10%

Source: AUTOMOTIVE MARKET IN CHINA 2011.PPT

Drivers & Challenges Summary

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

AUTOMOTIVE MARKET IN CHINA 2011.PPT

Summary Trends
China promotes alternative energy vehicles

Trends
OEMs are expanding through mergers and acquisitions

Increasing market share of the domestic OEMs

AUTOMOTIVE MARKET IN CHINA 2011.PPT

Major Domestic Players in the Market (1/10)


Company Snapshot: Company 1
Corporate Information
Headquarters Founded Products Key People City 1 19-Commercial and passenger vehicles, auto components Person 1 MD

Financial Performance
Revenue USD mn
5,000 4,000 3,000 2,000 1,000 0

Revenue Profit / Loss a4 a3 a1 a2

Profit USD mn
800 600 400 200 0

20--

20--

20--

20--

Business Highlights
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 12, and type 13; and type 14, which include type 15, type 16, type 17, type 18, type 19, type 20, type 21, and type 23 vehicle In Jul 20--, it is reported that the company is planning USD x mn investment together with subsidiary company 2
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

LE P M A S

Source: AUTOMOTIVE MARKET IN CHINA 2011.PPT

Other Major Domestic Players in the Market (4/5)


Company Snapshot: Company 2
Corporate Information
Headquarters Founded Products Key People City 2 19-Type 1, type 2, type 3, type 4 and development, type 6 Person 2 President

Business Highlights
It manufactures type 8 and type 9, including light type 10 and type 11, type 13 and type 14 vehicles It started construction of a new manufacturing base in Zengcheng
Company expects to finish the first phase of the manufacturing base, which has an investment of up to USD x mn, by the end of 20- New plant will mainly produce its own-brand vehicles, including type 15, type 16 and other type 17, and will eventually have an annual production capacity of y vehicles

Planning to buy a type 7 plant with its joint venture partner, the motorcycle maker company 3

In 20--, BAIC inaugurated a new plant in Zhuzhou, Hunan province and rolled out its first own-brand automobile, the brand 1

E L P M A S

Source: Press Articles; Company Website AUTOMOTIVE MARKET IN CHINA 2011.PPT

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: Jitendra Punjabi
Phone: E-Mail: +91 33 4064 6215 jitendra.punjabi@netscribes.com

Gagan Uppal
Phone: E-Mail: +91 22 4098 7530 gagan.uppal@netscribes.com

About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The companys expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. 10

AUTOMOTIVE MARKET IN CHINA 2011.PPT

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