hk000kl3_shorthk000kl3 21 jan 2008. hk000kl3_short i 、 prc auto industry in 2007 ii 、 dfg 2007...
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HK000KL3_ShortHK000KL3
21 Jan 200821 Jan 2008
HK000KL3_Short
I 、 PRC Auto Industry in 2007I 、 PRC Auto Industry in 2007
II 、 DFG 2007 Business Overview II 、 DFG 2007 Business Overview III 、 Outlook of PRC Auto Industry in
2008III 、 Outlook of PRC Auto Industry in
2008
HK000KL3_Short
I. Overview of PRC Auto Industry in 2007I. Overview of PRC Auto Industry in 2007
1. Strong Growth of Auto Sales
2. Enhanced Market Position of PRC Auto Industry
3. Upgrading of PV Consumption Structure
4. Higher Than Expected CV Growth ， with HDT in the Limelight
5. Further Expanded Auto Export
HK000KL3_Short- 4 -
3,971
6,2985,176
0
2,000
4,000
6,000
8,000
2005 2006 2007
2,4942,040
1,787
0
1,000
2,000
3,000
2005 2006 2007
5,758
7,216
8,792
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2005 2006 2007
1 、 Strong Growth of Auto Sales1 、 Strong Growth of Auto Sales
PRC Total Vehicle Sales VolumePRC Total Vehicle Sales VolumePRC Total PV Sales VolumePRC Total PV Sales Volume11
000’ units 000’units
PRC Total CV Sales VolumePRC Total CV Sales Volume
China Association of Automobile Manufactures (CAAM)China Association of Automobile Manufactures (CAAM)Note1Note1 ：： According to CAAM’s segmentation, passenger vehicles include passenger car, MPV, SUVAccording to CAAM’s segmentation, passenger vehicles include passenger car, MPV, SUV and cross-over and cross-over
vehiclesvehicles
Growth Rate:
21.84%Growth Rate : 21.68%
Growth:
22.25%
000’ units
HK000KL3_Short- 5 -
2 、 Enhanced Market Position of PRC Auto Industry
2 、 Enhanced Market Position of PRC Auto Industry
Expanded Domestic Auto Consumption ScaleExpanded Domestic Auto Consumption Scale
0000 unit0000 unit
Increased Global Market ShareIncreased Global Market Share
4. 3%5. 7%
7. 4%8. 1%
9. 0%
10. 7%12. 0%
0. 0%
2. 0%
4. 0%
6. 0%
8. 0%
10. 0%
12. 0%
14. 0%
2001 2002 2003 2004 2005 2006 2007
2001 2002……
2004 2005 2006 2007
1 US
1747
US
1714……
US 1730
US 1700
US
1705
US 1690
2 JPN JPN
578 ……
JPN 585
JPN 585
PRC 721
PRC
836
3 GER 364
GER 352
……PRC 512
PRC 575
4 GBR 277
PRC
338
5 FRA 275
6 Italy 269
7 PRC 244
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3 、 Upgrading of PV Consumption Structure
3 、 Upgrading of PV Consumption Structure
PV Sales Structure by Engine Displacement in 2007 PV Sales Structure by Engine Displacement in 2007 Upgrading of PV Consumption StructureUpgrading of PV Consumption Structure
26. 4%17. 4% 12. 3%
42. 4%48. 7%
48. 5%
17. 5% 20. 7% 25. 2%
11. 1% 10. 3% 12. 1%2. 6% 2. 9% 2. 0%
0%10%20%30%40%50%60%70%80%90%
100%
2005 2006 2007
Bel ow 1. 0L 1. 0L- 1. 6L 1. 6L- 2. 0L 2. 0L- 2. 5L Above 2. 5L
Mid-to-high end Sedan sales achieved fast growth. In 2007,mid-to-high end sedan sales grew by 43%, much higher than industry average growth of 22%.
Lackluster growth of economic sedans； SUV achieved a strong growth of 50%, with City Cross-over SUV, Functional SUV and Recreational SUV favored by consumers.
MPV grew by 18% in 2007, lower than PV industry average growth of 21.68%.
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4 、 Higher Than Expected CV Growth ， HDT in the limelight
4 、 Higher Than Expected CV Growth ， HDT in the limelight
Favorable macro economy environment boosted the robust sales Favorable macro economy environment boosted the robust sales of HDT Segmentof HDT Segment
Impact from implementation of weight-tolling systemImpact from implementation of weight-tolling system
Upgrade of highway transportation system and increasing demand Upgrade of highway transportation system and increasing demand for highway cargo transportation efficiencyfor highway cargo transportation efficiency
HDT technology advanced, with higher price-performance ratio HDT technology advanced, with higher price-performance ratio and further expanding exportand further expanding export volumevolume
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5 、 Further Expanded Auto Export5 、 Further Expanded Auto Export
Rapid Growth of PRC Auto ExportRapid Growth of PRC Auto Export Change of Export LayoutChange of Export Layout
2 4.87.8
17.2
34.24
60140.0%
62.5%
120.5%
99.1%
75.2%
0
10
20
30
40
50
60
70
2002 2003 2004 2005 2006 2007
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
140.00%
160.00%
export vol umn uni t`0000（ ） growth rate
PRC auto export achieved fast growth in the past few years. Auto export volume has increased from 20,000 units in 2002 to 600,000 units in 2007.
According to statistics released by China Chamber of Commerce for Import and Export of Machinery and Electronic Products, average unit export price in 2007 was US$ 11,800 ， representing a 31.9% growth compared with that of US$9,000 in 2006. Truck export unit price was more stronger, reaching 41.4% growth. In terms of export revenue, truck export still held a dominating position . In terms of export volume, HDT with a loading capacity higher than 20t increased rapidly, while previously truck export used to be dominated by those with a loading capacity under 5t.
HK000KL3_Short
II. DFG Business Performance in 2007II. DFG Business Performance in 20071. Auto Business Continued to Maintain Strong Growth Momentum
2. Sales and Market Share of DFG in Different Segments
3. Stable Growth of PV Business
4. Steady Production Capacity Expansion Plan
5. Newly Launched Models Well Received by the Market
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Rapid Development of PV BusinessRapid Development of PV BusinessSteady Growth of Auto Sales VolumeSteady Growth of Auto Sales Volume
Steady Growth of CV BusinessSteady Growth of CV Business
1. Business Continued to Maintain Strong Growth Momentum
1. Business Continued to Maintain Strong Growth Momentum
In 2007, DFG’s total sales reached 949,500 units, representing a YoY growth of 26.5%, higher than the industry average growth of 21.84%. PV sales reached 638,000 units, representing a YoY increase of 28.89%, while CV sold 311,500 units, with a YoY increase of 21.88%.
595
751
950
0
100
200
300
400
500
600
700
800
900
1,000
2005 2006 2007
000’unit
Growth :
26.5%
351
495
638
0
100
200
300
400
500
600
700
2005 2006 2007
Growth:
28.89%000’unit
244256
312
0
50
100
150
200
250
300
350
2005 2006 2007
Growth:
21.88%
000’unit
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43. 80
2. 35 3. 336. 70 5. 00
10. 10
55
35. 8
8. 86. 4
11. 7
0. 00
10. 00
20. 00
30. 00
40. 00
50. 00
60. 00
Sedan MPV SUV HDT MDT LCV
2006 2007
■ 11.4% ■ 11.6%
■ 12.3% ■ 13.3%
■ 14% ■ 16.2%■ 21.8% ■ 18%
■ 24.8% ■ 27%■ 10.6% ■ 10.6%
0000’ units
2. Sales and Market Share of DFG in Different Segments
2. Sales and Market Share of DFG in Different Segments
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’’unitunit
3. Rapid Growth of PV Business3. Rapid Growth of PV Business
In 2007 ， PV sales of DFG reached 638,000 units, representing a YoY growth of 28.89%.
203, 537271, 915
0
100, 000
200, 000
300, 000
2006 2007
DDongfeng Motor Company Ltdongfeng Motor Company Ltd
Growth: 33.59%
201, 318
207, 255
195, 000
200, 000
205, 000
210, 000
2006 2007
Growth: 2.98%
Dongfeng Pegeot Citroen Automobile Dongfeng Pegeot Citroen Automobile
Co., LtdCo., Ltd PSA Peugeot Citroën
63, 373
127, 042
0
50, 000
100, 000
150, 000
2006 2007
Dongfeng Honda Automobile Co., LtdDongfeng Honda Automobile Co., Ltd
Growth: 100.32%
.
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320
625
345
720
413
820
0
100
200
300
400
500
600
700
800
900
CV PV
2006 2007 2008E
4 、 Steady Production Expansion Plan4 、 Steady Production Expansion Plan
Steady Production Expansion Plan
Unit`000Unit`000
DFG Production Capacity and Utilization Rate
716 745
9451065
422.4598.2
756.3 958.8
59%
80.30% 80.03%90.03%
0
200
400
600
800
1000
1200
2004 2005 2006 2007
0%
20%
40%
60%
80%
100%
Capaci tyPruduct i onPruduct i on ut i l i zat i on rate
Comparatively High Level of Comparatively High Level of Production Utilization RateProduction Utilization Rate
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5 、 Newly Launched Models Well Received By the Market
5 、 Newly Launched Models Well Received By the Market
20072007
车型
Before 2006Before 2006
206
New 307
New Teana
Civic
C-Triomph
Sylphy
C2
Livina Geniss
More
new
models
/face
lift
to c
om
e in 2
00
8
New PicassoNew Picasso
LivinaLivina
New CRVNew CRV
Upgraded KinlandUpgraded Kinlandkinlandkinland
QashqaiQashqai
New TeanaNew Teana
X-Trail
307 Hatchback307 Hatchback
C4C4
20082008
HK000KL3_Short
III. Growth Prospect of PRC Auto Industry in 2008III. Growth Prospect of PRC Auto Industry in 2008
HK000KL3_Short- 16 -
III. Growth Prospect of PRC Auto Industry in 2008
III. Growth Prospect of PRC Auto Industry in 2008
We expect PRC auto industry to continue the rapid development momentum in 2008, but due to macro economy tightening policy, auto growth speed is likely to slow down compared with that of 2007. If auto industry grows by a conservative 15%, total auto sales in 2008 will reach 10.1million units; if it grows by an optimistic 20%, then total industry sales will reach 10.54 million units.
HK000KL3_Short- 17 -
Thanks!