OPPORTUNITIES FOR THAI OPPORTUNITIES FOR THAI

AUTOMOTIVE INDUSTRYAUTOMOTIVE INDUSTRY

Masashi KudoCorporate GM, Oceania & Latin America Office

Mitsubishi Motors Corporation

1

IndexIndex

1. Overview Chilean economical activities

2. Chilean Automotive Industry

3. Thailand products in Automotive Industry

4. Korea – Chile FTA effect

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3

1. Overview Chilean Economical Activities

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Territory 756.945 Km2

Population 17.134.708 inhabitants

Urban population 89%

Total GDP 2011 281.368 million USD

Per Capita Income (year) 16.172 USD

Persons per vehicle 5,7

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North Area

• Mining

• Fishing

• Pisco (Liquor)

• Free trade port

• Fruit Production

Northern Area

6

Central Area

• Industry

• Services

• Tourism

• Wine

• Largest Ports

• Power Generation

• Farming

Central Area

7

Southern Area

South Area

• Farming

• Forestry

• Cattle Breeding

• Fishing

• Fish Farming (Salmon)

• Energy Resources

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2. Chilean Automotive Industry

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• In September 2008 (Lehmann Brothers crisis) Chile experienced one of the worst economical crisis of our history. Nevertheless, the recovery started exactly one year later, in September 2009. In 2011 the market closed with an historical sales record of 340.801 units.

108,798,3 102,5

119,5

148,6

182,3 190,6

227,7239,8

172,1

289,3

316

340,8

0,0

50,0

100,0

150,0

200,0

250,0

300,0

350,0

400,0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*

Chilean market evolution

10

Sales Situation by Brand up to June

• Korean and Chinese brands are growing in 2012 vs. 2011.

BRANDJan-Jun

2011

Jan-Jun

2012Unds.

Jan-Jun

2011

Jan-Jun

2012

Difer.

Ptos

1 CHEVROLET 28.718 27.436 -1.282 17,5% 17,1% -0,32 NISSAN 18.586 17.881 -705 11,3% 11,2% -0,13 HYUNDAI 16.768 17.237 469 10,2% 10,8% 0,64 KIA 15.133 14.770 -363 9,2% 9,2% 0,05 TOYOTA 10.718 11.929 1.211 6,5% 7,5% 0,96 SUZUKI 11.052 7.508 -3.544 6,7% 4,7% -2,07 PEUGEOT 4.435 4.246 -189 2,7% 2,7% 0,08 MITSUBISHI 4.766 4.057 -709 2,9% 2,5% -0,4

9 FORD 4.511 4.050 -461 2,7% 2,5% -0,210 SSANGYONG 3.705 3.907 202 2,3% 2,4% 0,211 GREAT WALL 2.893 3.903 1.010 1,8% 2,4% 0,712 VOLKSWAGEN 3.536 3.795 259 2,2% 2,4% 0,213 CHRYSLER 4.194 3.633 -561 2,6% 2,3% -0,314 MAZDA 4.306 3.074 -1.232 2,6% 1,9% -0,715 RENAULT SAMSUNG 3.901 2.595 -1.306 2,4% 1,6% -0,816 CHERY 1.994 2.491 497 1,2% 1,6% 0,317 CITROËN 2.385 2.282 -103 1,5% 1,4% 0,018 FIAT 1.595 2.167 572 1,0% 1,4% 0,419 SUBARU 1.702 2.025 323 1,0% 1,3% 0,220 MAHINDRA 1.738 1.970 232 1,1% 1,2% 0,221 JAC 1.558 1.684 126 0,9% 1,1% 0,122 RENAULT 1.922 1.641 -281 1,2% 1,0% -0,123 MERCEDES BENZ 1.510 1.596 86 0,9% 1,0% 0,124 HONDA 1.323 1.394 71 0,8% 0,9% 0,125 BMW 1.400 1.283 -117 0,9% 0,8% -0,126 BYD 1.310 1.203 -107 0,8% 0,8% 0,027 GEELY 984 1.042 58 0,6% 0,7% 0,128 AUDI 940 1.000 60 0,6% 0,6% 0,129 HAFEI 917 930 13 0,6% 0,6% 0,030 VOLVO 891 862 -29 0,5% 0,5% 0,0

BRANDJan-Jun

2011

Jan-Jun

2012Unds.

Jan-Jun

2011

Jan-Jun

2012

Difer.

Ptos

31 LIFAN 541 795 254 0,3% 0,5% 0,232 DFSK 0 667 667 0,0% 0,4% 0,433 DONGFENG 18 663 645 0,0% 0,4% 0,434 CHANGAN 426 591 165 0,3% 0,4% 0,135 MG 113 475 362 0,1% 0,3% 0,236 DAIHATSU 317 453 136 0,2% 0,3% 0,137 ZXAUTO 764 445 -319 0,5% 0,3% -0,238 ZOTYE 384 374 -10 0,2% 0,2% 0,039 SKODA 44 328 284 0,0% 0,2% 0,240 LAND ROVER 261 298 37 0,2% 0,2% 0,040 OPEL 0 256 256 0,0% 0,2% 0,241 FOTON 253 190 -63 0,2% 0,1% 0,041 LEXUS 204 187 -17 0,1% 0,1% 0,042 MINI 184 176 -8 0,1% 0,1% 0,043 TATA 192 151 -41 0,1% 0,1% 0,044 PORSCHE 149 143 -6 0,1% 0,1% 0,045 JIMBEI 69 89 20 0,0% 0,1% 0,046 IVECO 42 44 2 0,0% 0,0% 0,047 JAGUAR 33 40 7 0,0% 0,0% 0,048 ALFA ROMEO 65 36 -29 0,0% 0,0% 0,049 AUTORRAD 16 20 4 0,0% 0,0% 0,050 FERRARI 13 11 -2 0,0% 0,0% 0,051 ASTON MARTIN 16 8 -8 0,0% 0,0% 0,052 MASERATI 6 6 0 0,0% 0,0% 0,053 JMC 337 1 -336 0,2% 0,0% -0,254 DFM 432 0 -432 0,3% 0,0% -0,355 SAAB 8 0 -8 0,0% 0,0% 0,0

T O T A L 164.278 160.038 -4.240 100% 100%

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2 0 1 12 0 1 1 2 0 1 22 0 1 2

From January to June

Sales Variation by Type of Vehicles

P-car

53%

SUV

21%

P/UP

20%

VAN

6%

P-car

55%

SUV

20%

P/UP

19%

VAN

6%

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3. Thailand products in Automotive Industry

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Total Market Sales of Origin

• Vehicles Sales of Thailand origin over the past 5 years has grown significantly

Origin 2006 2007 2008 2009 2010 2011 2012* 2006 2007 2008 2009 2010 2011 2012*

KOREA 48.911 66.714 69.976 63.791 102.993 110.986 53.174 25,7% 29,3% 29,2% 37,1% 35,6% 32,6% 33,2%

CHINA 920 5.425 17.731 10.251 20.763 44.208 23.744 0,5% 2,4% 7,4% 6,0% 7,2% 13,0% 14,8%

JAPAN 49.749 57.318 60.182 35.217 60.158 49.570 19.766 26,1% 25,2% 25,1% 20,5% 20,8% 14,5% 12,4%

MEXICO 11.256 12.672 10.721 12.561 22.580 32.916 15.273 5,9% 5,6% 4,5% 7,3% 7,8% 9,7% 9,5%

THAILAND 4.262 7.385 8.155 7.811 18.333 22.972 9.660 2,2% 3,2% 3,4% 4,5% 6,3% 6,7% 6,0%

INDIA 4.062 8.093 10.939 7.737 12.008 19.280 8.558 2,1% 3,6% 4,6% 4,5% 4,2% 5,7% 5,3%

USA 6.522 8.018 8.475 7.276 12.749 14.268 7.308 3,4% 3,5% 3,5% 4,2% 4,4% 4,2% 4,6%

FRANCE 7.168 8.728 9.155 4.166 6.335 10.655 5.731 3,8% 3,8% 3,8% 2,4% 2,2% 3,1% 3,6%

GERMANY 2.656 3.500 3.851 3.640 5.924 7.891 4.236 1,4% 1,5% 1,6% 2,1% 2,0% 2,3% 2,6%

BRAZIL 20.702 13.486 10.566 5.683 7.742 6.362 3.144 10,9% 5,9% 4,4% 3,3% 2,7% 1,9% 2,0%

ARGENTINA 22.486 20.307 14.354 3.921 6.575 4.652 2.027 11,8% 8,9% 6,0% 2,3% 2,3% 1,4% 1,3%

ITALY 112 847 786 496 910 1.900 1.337 0,1% 0,4% 0,3% 0,3% 0,3% 0,6% 0,8%

SPAIN 5.218 6.594 5.279 3.025 5.845 3.765 1.278 2,7% 2,9% 2,2% 1,8% 2,0% 1,1% 0,8%

UK 540 615 793 702 1.783 3.649 1.189 0,3% 0,3% 0,3% 0,4% 0,6% 1,1% 0,7%

SWEDEN 251 398 522 601 1.180 1.830 862 0,1% 0,2% 0,2% 0,3% 0,4% 0,5% 0,5%

CANADA 419 574 644 747 829 1.114 723 0,2% 0,3% 0,3% 0,4% 0,3% 0,3% 0,5%

TURKEY 201 371 282 113 99 1.941 709 0,1% 0,2% 0,1% 0,1% 0,0% 0,6% 0,4%

CHECK REP. 32 46 165 148 163 544 444 0,0% 0,0% 0,1% 0,1% 0,1% 0,2% 0,3%

INDONESIA 969 1.376 1.521 652 835 1.087 373 0,5% 0,6% 0,6% 0,4% 0,3% 0,3% 0,2%

COLOMBIA 0 130 726 441 1.076 1.048 364 0,0% 0,1% 0,3% 0,3% 0,4% 0,3% 0,2%

POLAND 70 0,0%

AUSTRIA 309 384 183 59 29 137 64 0,2% 0,2% 0,1% 0,0% 0,0% 0,0% 0,0%

BELGIUM 452 582 588 316 259 25 4 0,2% 0,3% 0,2% 0,2% 0,1% 0,0% 0,0%

ECUADOR 0 0 0 2.075 109 1 0 0,0% 0,0% 0,0% 1,2% 0,0% 0,0% 0,0%

CHILE 2.594 4.140 4.240 623 3 0 0 1,4% 1,8% 1,8% 0,4% 0,0% 0,0% 0,0%

PORTUGAL 822 25 0 0 0 0 0 0,4% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0%

TOTAL 190.613 227.728 239.834 172.052 289.280 340.801 160.038 100% 100% 100% 100% 100% 100% 100%

* January to June

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Sales and Market share evolution - Thailand products

• Thailand origin vehicle sales over the past 5 years have grown significantly

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Imports from Thailand by brand

Mitsubishi, 31,8%

Toyota, 25,5%

Chevrolet, 13,8%

Nissan, 24,4%

Mazda, 3,5%

Ford, 1,0%

2012*

Origin Brand 2006 2007 2008 2009 2010 2011 2012*

THAILAND Mitsubishi 3.118 3.802 3.039 2.463 3.966 6.418 3.073

THAILAND Toyota 0 0 0 1.049 3.180 4.902 2.464

THAILAND Chevrolet 0 0 0 0 3.718 3.592 1.329

THAILAND Nissan 0 0 1.779 2.333 4.856 3.539 2.361

THAILAND Mazda 785 2.117 2.009 1.030 1.639 2.653 339

THAILAND Ford 359 1.466 1.328 936 974 1.868 94

TOTAL 4.262 7.385 8.155 7.811 18.333 22.972 9.660

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Origin by Segment - Passenger

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Origin by Segment - SUV

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Origin by Segment - MPV

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Origin by Segment – P/UP

20

Thailand models – P/UP segment

Mitsubishi L200

Nissan Navara

Toyota Hi-Lux

Mazda BT-50

Ford Ranger

Chevrolet D-Max

21

Pick up Sales by Origin

• Pick ups sold in Chile come from Thailand keep No.1 share

Origin 2006 2007 2008 2009 2010 2011 2012*

THAILAND 4.262 7.385 8.075 7.594 17.397 21.359 9.125

MEXICO 1.743 2.105 1.841 950 4.057 11.759 6.971

KOREA 6.503 7.737 6.942 5.466 8.033 9.778 5.140

CHINA 0 846 6.580 3.412 6.006 7.077 4.143

USA 1.834 1.860 2.053 2.225 4.439 4.094 1.837

INDIA 0 245 687 898 2.210 2.856 1.550

ARGENTINA 4.585 4.559 4.641 1.636 4.874 3.198 1.545

BRAZIL 3.524 2.539 2.385 1.980 2.539 1.797 935

CANADA 31 0 1 14 350 373 161

INDONESIA 200 270 197 105 226 261 118

JAPAN 8.383 7.663 6.675 4.510 9.999 3.230 0

ECUADOR 0 0 0 2.075 109 1 0

CHILE 2.594 4.140 4.240 623 3 0 0

FRANCE 35 33 17 17 3 0 0

TOTAL 33.694 39.382 44.334 31.505 60.245 65.783 31.525

* January to June

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4. Korea – Chile FTA effect

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Import Tax in Chile for vehicles

Export country Brazil Mercosur 0% by Mercosur

Origen Argentina Mercosur 0% by Mercosur

Maxico ・NAFTA FTA 0%

Colombia ・Mercosur 0% by Mercosur

Japan FTA 0%

Thailand 6%

Korea FTA 0%

China FTA 0%

USA FTA 0%

India 4%-6%

France ・EU 0% by EU FTA

Germany ・EU 0% by EU FTA

Spain ・EU 0% by EU FTA

England ・EU 0% by EU FTA

Current situation of FTA’s with Chile

24

Korean Brands after FTA

• Since the FTA got in force in 2003, Korean brands increased sales from 18,8% to 32,6%

in 2011, achieving 37,1% sales in 2009.

Origin 2003 2004 2005 2006 2007 2008 2009 2010 2011

Korea 18.8% 21.0% 23.2% 25.7% 29.3% 29.2% 37.1% 35.6% 32.6%

Thailand 2.7% 2.1% 2.0% 2.2% 3.2% 3.4% 4.5% 6.3% 6.7%

Thailand* 10.4% 9.7% 11.3% 13.6% 13.6% 13.4% 15.2% 25.7% 24.8%

* with FTA, SKBergé Projection

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

2003 2004 2005 2006 2007 2008 2009 2010 2011

Korea

Thailand

Thailand*

*If FTA concluded (assumption)

Khob Khun Krab!Khob Khun Krab!

Gracias!Gracias!

Thank you!Thank you!

Bangkok, September 19, 2012

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