PERSPECTIVES ON THE EVOLUTION OF THE AUTOMOBILE ...

PERSPECTIVES ON THE EVOLUTION OF THE AUTOMOBILE INDUSTRY IN CHINA
AND IT’S IMPACT ON THE LOGISTIC FLOWS IN EUROPE
April 2009

Automotive Industry in China
Table of contents
I Executive Summary and methodology ....................................................................... 4
1. Macro analysis ...................................................................................................... 4
2. Micro analysis ....................................................................................................... 5
3. Conclusion ............................................................................................................ 5
4. Methodology ......................................................................................................... 6
5. Note ....................................................................................................................... 6
II Macro analysis ............................................................................................................ 7
1. History of the Automotive Industry in China ....................................................... 7
2. Current market situation ....................................................................................... 8
2.1 Capacity ....................................................................................................... 11
2.2 Production and Sales (domestic markets) .................................................... 12
2.3 Exports: figures and current markets ........................................................... 16
2.4 Imports: figures and current markets ........................................................... 20
3. Legal environment and market requirements ..................................................... 22
3.1 Legal environment in Europe and independent assesment .......................... 23
a) The United Nation Economic Commission for Europe (UN ECE)
regulations ................................................................................................. 24
b) European Community Whole Vehicle Type Approval (EWVTA) 24
c) EuroNcap ....................................................................................... 25
3.2 Legal environment in U.S. ........................................................................... 26
3.3 Challenges faced by the Chinese car makers that want to enter developed
markets 27
III Micro analysis ........................................................................................................... 28
1. Overview of Automotive Industry in China and future perspectives ................. 28
1.1 SWOT analysis of the main group players in the market ............................ 33
1.2 Plans for expansion of car makers ............................................................... 34
a) Chery and Geely ............................................................................ 34
b) New Technology cars .................................................................... 36
1.3 Perspectives of consolidation in the industry ............................................... 36
a) Government plans to enhance the industry .................................... 36
b) Future mergers and acquisitions .................................................... 37
2. Decision making process along the logistic chain .............................................. 39
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Automotive Industry in China
IV Scenarios and conclusions ........................................................................................ 42
1. Scenarios: development routes ........................................................................... 42
1.1 Drivers .......................................................................................................... 42
1.2 Tendencies ................................................................................................... 43
a) Big 3 (or Big 5) .............................................................................. 43
b) JV’s ................................................................................................ 43
c) New Players ................................................................................... 44
2. Conclusions ......................................................................................................... 45
V Annexes ..................................................................................................................... 47
Annex I. Relations established between foreign and local car manufacturers ........... 48
Annex II. Car manufacturers in China ......................................................................... 50
Annex III. Car models produced in China ..................................................................... 51
Annex IV. Summary of some relevant companies ........................................................ 55
Annex V. Export and import data of Passenger Cars ................................................... 61
Annex VI. Volume of imported passenger cars by origin, brand and model ................ 66
Annex VII. Volume of top 30 imported passenger cars models in top 5 provinces 69
Annex VIII. Comparison of data from different sources of information .................. 71
Annex IX. Overview of the main RoRo terminals in China .......................................... 72
Annex X. Homologation in EC (EWVTA) (list of Applicable directives) .................. 73
Annex XI. Overview of the situation of the production centers .................................... 76
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Automotive Industry in China
I Executive Summary and methodology
1. Macro analysis
The automotive industry in China was mainly developed in the past 20 to 30 years.
In 2001 the sales of automobiles in China have experienced an incredible growth
mainly driven by the growth of sales of passenger cars. In 1998 China was producing
less than 2 million vehicles while 10 years later the production has reached 9 million
units.
China is among the three world largest car producers together with the U.S. and Japan.
China is not as affected by the recession as other countries. Therefore, during the first
three months of 2009, more cars have been sold in China than in the U.S. or Japan.
China domestic sales are expected to reach 10.7 million cars in 2009.
However, the automotive industry in China is not mature. The car parking ratio and
the cars sales ratio that are the indicators used to measure the maturity of the industry,
are far lower than those of the U.S., Europe or Japan. Furthermore, the after sales
services and other services like financing, service centers and used car market are still
not developed. The industry potential is incomparable; in the U.S. there are 90 cars
per every 100 people able to drive, however, in China there are only 3.
According to the IMF (International Monetary Fund) the number of automobiles in
the world (that was 600 million in 2005) will be 2,950 millions in 2050. In 2030 there
will be more cars in China than in the U.S. and in 2050 there will be as many cars in
China as there are today in the world.
Exports, although they are still very small, have been increasing. We do not have
reliable data to know the exact ratio of exports on production because the data for
exports are not reliable. However, for sure it is less than 10% (we estimate exports to
be around 4% in 2007). The major regions are Europe and North America that have
70% of the exports. The exports of passenger cars to Spain have been growing,
although the total quantity according the information from customs was around
38,000 units in 2007. However, our research leads us to think that in reality this
number must be much smaller.
China imported around 530,000 passenger cars in 2008 mainly from Japan, Germany,
South Korea and the U.S.
China made cars, in order to be able to be sold in Europe, need to pass the
homologation process. Apart from this Approval by the European Community, that is
mandatory, if they do not get a minimum punctuation in the EuroNCAP the market
will reject them (the EuroNCAP is an organization that provides an independent
assessment of the safety performance of some of the most popular cars sold in
Europe).
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Automotive Industry in China
2. Micro analysis
There are around 100 car manufacturers in China that can be divided in three groups
of players: the Big 3, the Joint Ventures (JV’s) and the New Players.
The Big 3 are the three largest Chinese companies that are supported by the
government. These are SAIC, FAW and DFM.
The Joint Ventures are among big Chinese companies and MNC’s. The
MNC’s are not allowed to produce cars in China if it is not in JV with a
Chinese company. The MNC cannot have more than 50% of equity and can
only establish JV’s with a maximum of two Chinese companies. The biggest
ones are GM-SAIC, VW-SAIC and VW-FAW.
The New Players are younger and independent companies. The best known
are Chery, Geely, BYD, Great Wall, Brilliance and Lifan.
The main objective of the car manufacturers in China is wining market share in the
domestic market. China is the most attractive market for automobiles especially for
passenger cars. However, among the three groups of players the ones that are making
bigger efforts to export abroad are the New Players.
The Big 3 and the New Players are already exporting to developing countries. The
JV’s state that they will not export from China because that will damage their
European or U.S. business. However, we have found some cases where some of the
JV’s are already exporting.
The automotive industry in China will go through a process of mergers & acquisitions.
The objective of the government is to have 5 big companies whose production
capacity can be over 2 million units per year (and can therefore compete with the
traditional world leaders) and several smaller auto groups that can produce 1 million
units per year. SAIC, DFM and FAW are expected to be among the 5 big ones. Chery
together with JAC and CAMC, BAW, GAIC and Southeast could also be appointed
by the government.
Last but not least, China aims to be the world leader in new technology vehicles using
more environmentally friendly energy. In 2008, China produced 2,000 units of
electric and hybrid cars. This production is expected to increase up to one million
vehicles in 2011.
3. Conclusion
There is no doubt that China will be part of the globalised automobile industry.
Chinese cars will be sold all over the world. They are already exporting cars in
developing countries. The only question is how long it will take to enter Europe and
the U.S.
To conclude this report the expected scenarios for the Big 3, the JV’s and the New
Players have been analyzed and some recommendations have been drawn.
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Automotive Industry in China
4. Methodology
Our main objective is to gather information about and analyze the situation of the
passenger cars market. However, we will also overview the situation of the
automobile in general.
The first phase has consisted on gathering information from secondary research about
macroeconomic data. Our main sources of information have been:
China Development Review (CDR)
China Association of Automobile Manufacturers (CAAM)
Fourin: Research and Analysis of the Asian Automotive Industry
CEIC database
InterChina Analysis
China Commerce Yearbooks
China Main Customs Administration.
In China, it is not easy to have access to reliable sources of information. The
databases and national statistics sometimes are far away from the reality. Often we
may get the same information from different sources and it is difficult to know which
source is more reliable. Knowing this, we have compared the information provided by
several sources to see how big could be the deviation. In some cases, we have found
that the differences from one source to another can be enormous. In Annex VI there is
a comparison of the same data from different sources of information.
In a second phase, we have undertaken several interviews to car manufacturers,
industry specialists, shipping companies and terminal operators.
Through the interviews we have contrasted the information from the secondary
research and we have got inputs from the different players in this industry about the
current situation and the perspectives for the future.
5. Note
We want to highlight that in this report the Annexes play a very important role. In
order to understand the scenarios and recommendations of this report, it is important
to be aware of the complexity of the Automotive Industry in China. There are
between 80 to 120 licensed car manufacturers in China (we have not been able to find
out the exact number). The past history of China has played an important role on this.
Chinese provinces have a high level of autonomy and the size of many European
countries. Consequently each one of these provinces have seen the naissance of at
least one car manufacturer and the provincial or local government has protected one
or several car manufacturers.
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Automotive Industry in China
II Macro analysis
1. History of the Automotive Industry in China
Eventhought the Automotive industry in China was mainly developed in the past 20
to 30 years, China tried to manufacture cars since the beginning of the 20 th century.
However, China really began to manufacture cars as early as 1949 with the help of
the Soviet Union. The cars’ platforms however were not developed in China, they
made use of Soviet Union technology.
It wasn’t until 1956, that China manufactured its first car under the name of Jiefang.
This first car was manufactured by the FAW group (China First Auto Group
Corporation) which two years later, in 1958, produced one new model of passenger
car first called “Dongfeng” and later renamed to “Hongqi”.
In the following years China localized its car manufacturing capacity in four locations:
Beijing, Shanghai, Nanjing and Jinan. During this period the car manufacturing
industry remained quite small, despite of that in 1969 the SAW group was founded in
Hubei Province (China Second Auto Group Corporation). Later, in 1992 this
company changed the name to Dongfeng Motor Corporation (DFM).
The starting of the modern auto industry in China could be set as the establishment of
the first automotive joint venture in 1984 between BAW (Beijing Automobile Works)
and AMC (American Motor Corp.): Beijing Geep
During the 25 years prior to this Joint Venture the total production volume was only
5000 units of passenger cars.
One year later in 1985 many Joint Ventures were established: Shanghai-VW, NAC
(Nanjing Automobile Group Corporation) introduced the Iveco from Fiat and GAC
(Guangzhou Automobile industry Group Corporation) and Peugeot
Given the quick development of the car industry, the Chinese government decided to
support its development as the major pillar of its economic reform. Since then,
Chinese automotive industry has been developing fast. In the beginning it used
technology from the foreign joint venture partners and later started to develop its own
technology and platforms.
The following important milestone in Chinese automobile industry is the foundation
of SAIC in 1990 (Shanghai Automobile Industry Corporation). During the nineties
the industry experienced a considerable growth and reached 1.6 million units in 1998.
During this decade new car models entered the Chinese market such as the family car
model or the mid/high luxury passenger cars introduced by SGM and Guangzhou
Honda.
However the biggest growth of the industry has been experienced during the last
decade, where the industry has consistently seen double digit growth. In 2002, total
year sales were 3,2 million and the industry started to see its first consolidations (the
merger between FAW and TJAM (Tianjing Automobile Industry Group)).
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Automotive Industry in China
Currently, China has a fuel-efficiency standard (approved in 2005), and Chinese car
makers begin to develop its own hybrid and electric vehicles.
2. Current market situation
During the last decade the automotive industry in China has experienced an incredible
growth. Sales of passenger cars in China exploded after 2001.
Figure 1. Figure Automobile production in China. Source: CDR database. Original data from
China Automobile industry Association and CDR database news.
This growth was driven by a nascent middle class of 100 million people with an
average income of US $4,000, expanding access to credit, and price cuts.
Millions
Millions
8
7
6
5
4
3
2
1
0
Automobile production in China
10
9
8
7
6
5
4
3
2
1
0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
Sales volume of Passenger Cars in China (1997-2007)
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Year
Year
Figure 2. Sources: China Automotive Industry Yearbook and InterChina Analysis. 1
1 Note: 2008 estimation is based on 10% growth over 2007.
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Automotive Industry in China
In 2006 the Chinese market overtook Japan to become the world's second largest
market for new vehicles in 2006 next to only the United States 2 , registering sales of
7.22 million units 3 . However, in 2007, U.S. sales went down considerably and Japan
become the number 1 (See Figure 3). In the first month of 2008 China has been the
worldwide leader of car production.
Millions
14
12
10
8
6
4
2
0
Japan
Top10 Production of automobile and passenger cars in 2007
America
China
German
Korea
French
Brazil
Spain
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Canada
Figure 3.Top10 automobile producers in 2007. Source: CDR database. 4
India
Automobile
Passenger
Car
While in 2003 China was the fifth biggest automobile producer, in 2007 it conquered
the third position only after Japan and the U.S. The world production in 2007 was
over 70 million vehicles.
However passenger car ownership in China is still very low with a ratio of 17 cars per
1000 people. We can definitely say that the automotive industry in China is not
mature.
2007
Car Parking
(thousands)
Car Sales
(thousands)
Population
(thousands)
Car Parking ratio
(per 100 people)
Car Sales ratio
(per 100 people)
EU 15 195,622 14,105 386,455 51 3.65
USA 135,670 7,561 301,585 45 2.51
Japan 55,213 4,399 127,274 43 3.46
China 28,940 4,942 1,321,290 2 0.37
Figure 4. China Automotive Industry maturity. Source: Global Insight Database, Jan 2009
updated.
2 “Study on the Future Opportunities and Challenges of EU-China Trade and Investment Relations”.
Emerging Markets Group and Development Solutions
3 China Association of Automobile Manufacturers (CAAM) Jan.11 2007
4 U.S. used to be the biggest automobile production country, but in 2007, Japan overtook American to
reach the top 1.

Automotive Industry in China
Some hints about the automotive market in China
Worldwide, the business of car companies has three business lines:
New car sales
After sales (including spare parts sales)
Services (financing, service center and used cars)
In developed countries:
Around 10-20% of profits come from sales
Around 50% of profits come from after sales
Around 30-40% of profits come from services
However the average in China is the following:
80% of profits come from sales
20 % of profits come from after sales
0% of profits come from services
In China, in the auto assembly sector, foreign companies cannot have more than a
50% equity share. Consequently, the Chinese industry is composed of local
manufacturers and Joint Ventures of foreign and local companies 5 . Some sources say
that there are around 120 car manufacturing companies in China while others say that
there are 100 to 80. (See Annex 2 for list of companies in China). Although we do not
have the exact number, the reality is that there are far more companies than the
industry can support.
The relationship between foreign and local companies is said to be quite complicated.
Indeed, each local company can have several foreign partners and each foreign
company can have several local partners 6 . Furthermore, local companies can also
produce alone. Consequently, the local companies which are far behind in knowledge
than their foreign partners, are in a continuous process of learning and transferring
knowledge from the JV to the local company (refer to Annex 1 for a better
understanding of these Joint Ventures).
Most of the Joint Ventures produce the cars which development cost is already
amortized in Europe or United States. However, often some minor changes are
introduced to adapt the cars to the Chinese market. Few models are fully developed
for the Chinese market (See Annex 3 to see the car models that are being produced in
China).
5 Chinese law forces foreign car makers to have a local partner and consequently, the success of a
foreign company in the Chinese auto sector has a great deal to do with the JV structure.
6 Up to now, foreign auto makers are not allowed to cooperate with more than two Chinese auto
makers.
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Automotive Industry in China
According to the results from CAAM 7 , the top 10 popular passenger cars in 2008 are:
Jetta(FAW-VW), Santana(SVW), Buick Excelle(SGM), Corolla(FAW Toyota),
Accord(Guangzhou Hongda), Camry(Guangzhou Toyota), F3(BYD), QQ (Chery),
Xiali(Tianjin FAW) and Elantra(Beijing Hyundai).
2.1 Capacity
Despite this rapid growth, enormous investment in capacity over the last five years
has led to intense price cutting and a consequent fall in profits. The total net earnings
of the top 30 auto producers in China increased from 2003 to 2004 by 45.2% but
profits in the industry fell by 6% during this period. European producers in particular
have suffered from the rapid increase in competition 8 .
There has been no country level planning and each province has supported its local
producers, leading to an overall overcapacity.
(Million Vehicles)
20
18
16
14
12
10
8
6
4
2
0
China's vehicles: manufacturing capacity
2005 2006 2007
Year
Capacity
Production
Figure 5. Capacity compared to production in China. Source: Fourin web page (www.fourin.com)
7 China Association of Automobile Manufacturers
8 “Study on the Future Opportunities and Challenges of EU-China Trade and Investment Relations”.
Emerging Markets Group and Development Solutions
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Automotive Industry in China
Manufacturer Present Capacity (Unit)
Capacity Under
Construction(Unit)
(Year of
completion)
Beijing Hyundai 300,000 150,000 2010
FAW-VW 400,000 600,000 2010
FAW Group 100,000 300,000 2010
Huachen Zhonghua 100,000 400,000 2010
Huachen BMW 30,000 400,000 2010
FAW Xiali 250,000 / /
FAW Toyota 300,000 200,000 2010
Dongfeng Yueda Kia 130,000 300,000 2010
Nanya Auto (Fiat) 60,000 250,000 2010
Chang’an Ford Mazda 160,000 / /
Shanghai-VW 450,000 100,000 2009
Shanghai GM 600,000 400,000 2010
Chery 200,000 600,000 2008
Geely 300,000 1,000,000 2010
DPCA 300,000 450,000 2010
Dongfeng Honda 120,000 180,000 2010
Chang’an Suzuki 200,000 200,000 2008
Chang’an Ford 250,000 100,000 2009
Guangzhou Honda 240,000 60,000 2010
Guangzhou Toyota 100,000 200,000 2010
Dongfeng Nissan 150,000 750,000 2010
FAW Mazda 150,000 / /
Figure 6. Major car OEMs are building up further capacity. Source: Inter China management
consultants.
According to InterChina consultants, China will reach a capacity of 15 million unit
cars by 2010. This information is not consistent with the information in Figure 5 that
states that China in 2007 already reached a capacity of 15 millions.
2.2 Production and Sales (domestic markets)
Output (units)
Thousands
1,600
1,400
1,200
1,000
800
600
400
200
Annual passenger car production in China
0
1990 1994 1998 2002 2006
Figure 7. Source: China Automotive Industry Association
Passenger car
Large type
Medium type
Light type
Miniature type
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Automotive Industry in China
The definition for Passenger Cars was changed in 2005 by the CAAM. Consequently,
we cannot mix data before and after 2005 9 .
In the following graph, we can find the monthly information of production. There is a
big difference between the annual output, if we use the information of China
Automotive Industry Association, and the CEIC database. The reason might be the
definition of passenger cars. Although we think the information from the China
Automobile Industry Association is more accurate, we need to use the information
from CEIC to show how the current global crisis has affected the market in the recent
months.
Production (units)
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Jan
Figure 8. Source: CEIC Database
China Passenger Car production
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
9 From January 2005, a new auto statistics reporting system was implemented by the China
Automotive Industry Association. The “Passenger car" category was renamed as “passenger vehicles”,
with broader coverage, including: 1. passenger cars; 2.MPV; 3.SUV; 4.other passenger vehicles
(vehicles in this category were previously included in Mini Bus or Light Bus category). In the old
system only data of some SUV and MPV brands were included in the passenger car category and
others were included in mini or light buses statistics. (Interchina)
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2005
2006
2007
2008

Automotive Industry in China
Sales (units)
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Jan
Figure 9. Source: CEIC Database
China Passenger Car Sales
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
In Figure 8 and Figure 9, we observe that the crisis has also affected China. In August
2008, the carmakers did not increase the production compared to the same month in
2007. However, the sales were even lower than in 2007. Recently, in October the
market has recovered a little bit.
Once more we put in evidence that the official sources of information in China might
not be very reliable. We have had access to the data adjusted by SAIC market
research department. As we can see in Figure 10 the sales data for each month are
lower than the ones from CEIC database. The sales data from SAIC in Figure 10 are
likely to be more realistic. As we do not have the data for 2008, we have used the data
from CEIC to see the effect of the worldwide crisis on sales.
(Units)
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Comparison among official data and data adjusted by car
company
Jan
Feb
March
April
May
June
July
Aug
Sep
Oct
Nov
Dec
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2005
2006
2007
2008
2005 adj.
2006 adj.
2007 adj.
Figure 10. Sales volume of Passenger Cars in China. Source: Data adjusted by SAIC market
research department from official sources.
2005
2006
2007

Automotive Industry in China
Millions
18
16
14
12
10
8
6
4
2
0
4.0
Annual Sales volume and forecasting (Units)
5.1
6.3 6.7 7.1
8.2
9.4
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10.5
12.1
13.8
15.8
2005 2006 2007 2008 2009* 2010* 2011* 2012* 2013* 2014* 2015*
Figure 11. Annual sales volume and forecast. Source: 2005-2008 data come from CEIC database
and the forecasting are from Inter China Analysis (2007)
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
Export proportion of produced passenger cars
2005 2006 2007 2008
Production (Units)
Percentage of Export in Production
Figure 12. Percentage of Export in Production. Source: Own elaboration from data from CEIC
database. 10
As we can see the data for 2005 to 2007 in Figure 12 and Figure 13 are different.
However the order of magnitude is similar (if we had used the data for exports from
customs the percentage of export in production would be much higher). This is one
more reason to think that the data for exports from customs is much higher than the
reality.
10 To elaborate this graph we used conservative data for exports. As we will explain later, the data of
exports from customs seem to be much higher than the reality.
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%

Automotive Industry in China
Figure 13. Percentage of Export in Production. Source: InterChina.
2.3 Exports: figures and current markets
It has not been possible to know which figures are more accurate regarding the
exports. The logic reasoning says that the information from customs should be a
reliable one. However the reality is that the numbers from customs are much bigger
than the numbers from any other sources.
Passenger
Database
Car Customs (8703) Fourin(CAAM) CEIC(CAAM) Automarket
2007 1,617,350 246,025 257,519 264,501
2006 1,433,051 119,394 115,467 126,344
2005 963,852 42,881 38,785 47,185
Figure 14. Comparative of export data from different sources of information.
In Annex VI, we can see in more detail the gap between different sources.
In Annex V we have the data for exports from China Customs.
It is possible that the definition of Passenger cars for customs include some kind of
vehicles like buggies that the other databases do not include. However, even if this is
the case, this cannot justify such a big difference between the data from customs and
the other sources.
Nevertheless, we have used the data from customs, that are the most detailed and
complete ones we have, to study the exports of Passenger cars by regions and by
countries. In 2008 the exports to U.S. decreased considerably as we can see in Figure
16. Figure 15 shows that now Europe is the main region for exported cars from China.
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Automotive Industry in China
Passenger Cars China exports to major regions 2008
(Units)
12%
9%
6% 3%
26%
44%
Europe *
North America
South America
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Asia *
Africa
Oceania
Figure 15. Passenger Cars China exports to major regions in 2008: Europe, North America,
South America, Asia, Africa, and Oceania. Source: China Custom. * Asia and Europe data do
not correspond to the ones in the database but they have been adjusted to include Turkey in
Europe.
(Units)
236,145
100,000
80,000
60,000
40,000
20,000
591,523
0
Passenger Cars China major exports to main countries(Units)
U.S.
Holland
Russia
Germany
Ukraine
Canada
UK
Argentina
Italy + San Marino
Poland
United Arab Emirates
Chile
Egypt
Japan
France
2008 2007
Algeria
Mexico
Belgium
Venezuela
Spain
Syria
Sweden
Colombia
Denmark
Finland
Turkey
Brazil
Iran
Figure 16. China Passenger car exports by country (top range by 2008). Source: China
customs. 11
Belgium, Germany, Check Republic and the three Baltic Countries are the only
countries in the European Union that allow cars that have not pass the European
homologation to be driven. Brilliance has been selling cars in those countries for
some years. However, these cars are being “attacked” by ADAC, the German
association similar to RACC in Catalonia 12 because they claim that the cars are not
safe.
11 Use this graph only to compare the exports among countries. The absolute numbers might not be
reliable.
12 www.youtube.com/watch (New Chinese Car Crash Test Disaster-2007 Brilliance B56)

Automotive Industry in China
Thousand Units
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
1,617
Passenger cars
305
1,432
2007 2006
China Exports China Imports
Figure 17. Source: China Commerce Yearbook 2008.
Thousand Units
300
250
200
150
100
50
0
Trucks
2007 2006
China Exports China Imports
Figure 18. Source: China Commerce Yearbook 2008.
Quantity (Units)
Thousands
700
600
500
400
300
200
100
0
221
China's passenger cars exports to Europe
2002
2003
2004
2005
2006
2007
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
Figure 19. Source: China Main Customs Administration. 13
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Value (1000 USD)
Thousand Units
50
40
30
20
10
0
Quantity
(Unit)
Value
(USD)
Buses
2007 2006
China Exports China Imports
According to data from customs, Spain accounts for 5% and 2% of the passenger cars
exports in 2005 and 2007 respectively. In 2008 the percentage has decreased to 1%.
13 Use this graph only to see the tendencies. The absolute numbers might not be reliable.

Automotive Industry in China
Value(USD)
Thousands
China's automobile exports to Spain (USD)
300,000
250,000
200,000
150,000
100,000
50,000
0
2002 2003 2004 2005 2006 2007 2008
Figure 20. Value of China’s automobile exports to Spain. Source: China automotive industry
yearbook (Chinese version). 14
Quantity (Units)
60,000
50,000
40,000
30,000
20,000
10,000
0
China's passenger cars exports to Spain
2002 2003 2004 2005 2006 2007
60,000
50,000
40,000
30,000
20,000
10,000
0
Value (1000 USD)
Quantity
(Unit)
Value
(USD)
Figure 21. Source: China Main Customs Administration. 15
14 In the English version the numbers are one order of magnitude smaller. Data for 2006 are not
available.
15 Use this graph only to see the tendencies. The absolute numbers might not be reliable.
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Automotive Industry in China
2.4 Imports: figures and current markets
The imports to China have been growing. Half of the imported cars come from Asia,
almost all of them from Japan and South Korea. The imports from Europe represent
33% and come mainly from Germany. In Annex V we can find the imports data from
customs. We think that the data for imports is reliable.
(Units)
250,000
200,000
150,000
100,000
50,000
0
China Imports (worldwide)
2003 2004 2005 2006 2007 2008
Figure 22. Passenger Cars China imports since 2003 (worldwide). Source: China custom.
Passenger cars China imports from major regions 2008
(Units)
33%
12%
1%
54%
Asia *
Europe *
North America
South America
Figure 23. Passenger Cars China imports from major regions in 2008: Asia, Europe, North
America, South America. Source: China Custom. * Asia and Europe data do not correspond to
the ones in the database but they have been updated to include Turkey in Europe.
Port of Barcelona Chair of Logistics 20

Automotive Industry in China
158, 674
Passenger cars China major imports from main countries (Units)
106, 717
(Units)
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Japan
Germany
South Korea
U.S.
U.K.
Slovakia
Sweden
Austria
Mexico
Malaysia
2008 2007
Belgium
France
Canada
Hungary
Italy
Spain
Finland
Portugal
Turkey
Poland
Figure 24. China Passenger car imports by country (top range by 2008). Source: China custom.
See Annex VI and VII for more detailed information about imported cars, by origin
brand and model in Annex VI and by the main places in China were these cars are
being imported.
The imports from Spain to China, although they have increased around 100% are very
low. In 2007 they were around 500 units and 2008 were around 1000 units.
(Units)
1400
1200
1000
800
600
400
200
0
Import from Spain to China
2003 2004 2005 2006 2007 2008
Figure 25. Source: China custom, organized by CDR.
Passenger Car
Automobile
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Automotive Industry in China
3. Legal environment and market requirements
Before being able to sell a motor vehicle in a market, it needs to have a Type
certificate according to the standards of the country where it will be sold. Different
countries give different certificates. In order to get those certificates you have to go
through what is called the homologation process.
There are many different homologation processes: U.S. has the self-certification
according to the Federal Motor Vehicle Safety Standards issued by the National
Highway Traffic Safety Administration. In Europe the national laws coexist with the
two European systems of homologation: the European Union directives and the
United Nations Economic Commission for Europe regulations.
Apart from these homologations, there are independent organisms that go further than
the legislation and give advice about the safety performance of cars. These organisms
are for example in Europe de EuroNCAP and in China the ChinaNCAP. There have
been cases where the car manufacturers have decided to stop selling one car model
that passed the homologation process but had a low punctuation in the EuroNCAP,
and therefore damaged the manufacturer’s brand.
In this chapter we are going to analyze:
The European Union directives (The European Whole Vehicle Type Approval
(EWVTA)).
The United Nation Economic Commission for Europe (UN ECE) regulations.
The NHTSA (National Highway Traffic Safety Administration) selfcertification
in U.S.
The EuroNCAP.
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Automotive Industry in China
3.1 Legal environment in Europe and independent assesment
In Europe, each country has its national laws to authorize the sale and circulation of a
car. However, European countries have also the European systems for homologation
of motor vehicles.
In Europe, two parallel systems for homologation of motor vehicles exist:
The European Union directives (The European Whole Vehicle Type Approval
(EWVTA 16 )).
The EWVTA allows cars to be driven in all member states and it is progressively
replacing the individual national type approvals of the EU member states. In fact, the
National Type-Approvals are expected to disappear in 2010.
The United Nation Economic Commission for Europe (UN ECE) regulations.
According if the homologation is gotten through the EU directives or through the UN
regulations the motor vehicle will get one certificate or another:
Ex
ex
Homologation through the U.N. regulations
Homologation according to the European directives
x: the country that gives the homologation (ex: Spain 9, Holland 4, etc.)
16 Type-Approval certificate is the document whereby the Approval Authority officially certifies that a
type of Vehicle is approved. With the test report and the Technical Documentation, the Approval
Authority issues the type Approval Certificate.
Technical Documentation: document set out in every separate Directive that prescribes the information
to be supplied by an applicant.
Directive: law enforced by the EC stating requirements and specifications to be met by all typeapproved
vehicles.
Test report: document issued by the technical service describing tests carried out and test result
obtained.
Technical Service: organization appointed by the Approval Authority of a Member State as a testing
laboratory to carry out tests or as a conformity assessment body to carry out the initial assessment and
other tests or inspections on behalf of the Approval Authority.
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Automotive Industry in China
a) The United Nation Economic Commission for Europe (UN
ECE) regulations
UN ECE is an organizational part of the United Nations. 17 Members are EU member
states plus many other countries such as Japan, U.S., Canada, Israel, South Africa,
Russia, Belarus and Turkey. In total there are 56 member States. Thus, testing
according to ECE regulations opens the gate to the worldwide markets and it is easier
to meet because of a broader acceptance of approved components.
b) European Community Whole Vehicle Type Approval
(EWVTA) 18
The European Community Whole Vehicle Type-Approval (EWVTA) system applies
to passenger cars since January 1998 19 . As a result, this category of vehicles (called
M1 20 ) must comply with all the relevant European Community (EC) type-approval
directives in order to be sold in the market. In Annex X we can find the List of
Applicable Directives to get the Type Approval.
EWVTA System allows manufacturers to have a vehicle "type" approved in one
Member State and then be able to market the vehicle in all other Member States
without further tests.
Once the Type approval is granted, the approval authority of each Member State must
also send to the approval authority of the other Member States a copy of the vehicle
type-approval certificate for each vehicle type which it has approved, refused to
approve or withdrawn.
In the Figure below we can see which are the steps to get the homologation for
Europe through the EU directives:
17 The UN ECE secretariat headquarters is in Geneva, Switzerland.
18 “LegalRequirements. EU vs USA Homologation” Idiada information.
19 Some sources say this law applies on mandatory bases since 1998. In other hand we have the
information that cars that don’t have any European homologation can be driven in Germany, Belgium,
Check, Republic, Latvian, Lithuania and Estonia. It could be possible that these cars are not
accomplishing the European legislation.
20 Vehicles used for the carriage of passengers which have no more than eight seats, in addition to the
driver’s seat. This includes both, small minibuses and regular passenger cars.
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Automotive Industry in China
Figure 26. Homologation process in E.U. Source: IDIADA information.
When a vehicle obtains the EWVTA, each Member State shall register; allow the sale
and the entry into service of new vehicles conforming to that EWVTA. Each vehicle
must have a valid Certificate Of Conformity (COC). The COC is a statement by the
manufacturer that the vehicle conforms to the relevant EC type-approval. Member
States cannot refuse to register vehicles for use on their roads if they comply with a
properly issued type-approval.
c) EuroNcap
EuroNCAP is an organization that provides an independent assessment of the safety
performance of some of the most popular cars sold in Europe. EuroNcap was
established in 1997. Currently it is backed by seven European Governments 21 , the
European Commission and motoring and consumer organizations in every EU
country.
Euro NCAP is working as a catalyst for encouraging significant safety improvements
to new car design. 22
21 UK, France, Germany, Sweden, Netherlands and Spain.
22 http://www.euroncap.com
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Automotive Industry in China
3.2 Legal environment in U.S. 23
U.S. Federal law prohibits any manufacturer to introduce into interstate commerce,
selling or importing any new motor vehicle unless the vehicle conforms to all
applicable safety standards.
NHTSA (National Highway Traffic Safety Administration) is authorized to issue
Federal Motor Vehicle Safety Standards (FMVSSs) that specify performance
requirements for new motor vehicles and items of motor vehicle equipment.
Manufacturers are required by statute to self-certify that their products conform to
NHTSA's safety standards before they can be offered for sale.
Evidence of that certification must be displayed in the form of a label on the vehicle.
Label's size, location and text are specified by NHTSA.
Manufacturers must also submit identifying information to NHTSA. In other words
NHTSA does not approve motor vehicles.
Figure 27. Homologation process in U.S. Source: IDIADA information.
23 “LegalRequirements. EU vs USA Homologation”. Information. from Idiada
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Automotive Industry in China
3.3 Challenges faced by the Chinese car makers that want to enter
developed markets
Countries that have no resources to develop their own laws can use the European
Nations list of regulations to decide their standard and which cars can be sold in their
country.
Through interviews, we have found out that in China, the certification companies
recommend to Chinese car makers that want to sell in Europe, to go through the UN
list of regulations as it’s easier to meet. In this way, if finally the automakers cannot
get the homologation, the tests done can be easily used to find out in which countries
the car could be sold. Some developing countries only require 20 or 30 tests to be
passed in order to get the homologation. This is one of the main reasons why Chinese
cars are being first exported to developing countries.
In our research we have found out that the main problems that Chinese car
manufacturers are facing when trying to pass the U.S. homologation are the safety
regulations. However, when they try to pass the European regulations the more
restrictive regulations are the gas emissions and the ones related to the recyclability of
the materials. Regarding the last one, in Europe the use of asbestos, lead and Cr+6 is
forbidden. However, in China the use of these materials, that are cheaper than their
substitutes is still widely extend and consequently difficult to find suppliers of car
components that do not use them.
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Automotive Industry in China
III Micro analysis
1. Overview of Automotive Industry in China and
future perspectives
Car manufacturers in China can be divided into three groups: The Big 3, Joint
Ventures and New players.
The Big 3 are the three largest Chinese companies with a long history. They are SAIC,
FAW and DFM.
These 3 companies, if we take into account their Joint Ventures, have around 50% of
market share in China. FAW and DFM are supported by the central government while
SAIC is supported by the local government of Shanghai. These companies are mainly
focused on the domestic market. They have a good dealer network and their main
objective is to develop high/medium-end cars.
SAIC is exporting finished cars to Mongolia, Russia, the Middle East and South
America. To Africa, west Asia, middle Asia and south Asia, they export the spare
parts and they assemble the car in those countries. SAIC has 19 branches and offices
in America, Japan, Germany, Thailand, etc.
In the interview undertook in SAIC they said not to be interested in the U.S. or
European market yet. The reason is that they are not prepared and the effort needed is
not worthy.
DFM is exporting a small quantity: about 7,000 units in 2007 and 12,000 units in
2008. DFM is in process of developing their first own brand car.
FAW exports a quite big quantity of its own brands cars: 10, 336 units in 2004; 14,
256 units in 2005 and 10, 023 units in the first 9 months of 2008.
The Joint Ventures are between Multi National Companies (MNCs) and Chinese
companies. The MNCs want to win market share in the Chinese market, but the
policies in China ask them to be in Joint Ventures with china local companies to have
the right to assemble cars in China. They focus on the high/medium-end cars.
They are GM-SAIC, VW-SAIC, VW-FAW, Toyota-FAW, Peugeot/Citroen-DFM,
Nissan-DFM, Kia-DFM, etc.
They are in China for the domestic market. However, except Peugeot/Citroen-DFM,
the left 6 export small quantities abroad
The New players are younger and independent companies. Except Chery, most of the
others are not state-owned and were started by Chinese entrepreneurs. In general, they
have poor brand image. In the interviews undertook, some people stated that in
general the New Players produce low quality products, and also lack experience of
this industry. Eventhough, most of the New Players state that exporting cars to
foreign countries is one of their short term goals. They are Chery, Geely, Great Wall,
BYD, etc.
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Automotive Industry in China
Joint Ventures
GM – SAIC
VW – SAIC
VW – FAW
Toyota - FAW
Peugeot/Citroen – DFM
Nissan – DFM
Kia – DFM
etc.
The Big 3
SAIC
FAW
DFM
Figure 28. Main Players in the Automotive Industry in China.
See Annex IV for a brief explanation of the previous companies.
New Players
Company Shareholder Supporter 4
FAW State owned company Central government
DFM State owned company Central government
SAIC State owned company 5
Shanghai government
Geely Private Zhejiang government
Chery State owned company Anhui government
BYD Private
Shanxi government
BYD Group 1
Great Wall Private Hebei government
Brilliance State owned company Liaoning government
Southeast 2
State owned company Fujian government
Lifan 3
Private Chongqing government
Chang'an* State owned company Central government
JAC State owned company Central government
BAW State owned company Beijing government
GAGC State owned company Guangdong government
JMCG* State owned company Central government
1. BYD Group is a HongKong listed company which main business is rechargeable batteries.
2. Southease also called FJMG.
3. AIG Group has bought 3.5% share of Lifan Group, so Lifan now is a joint venture.
4. The institution that has influence in the decision making process.
5. Although SAIC Motor is in the Shanghai Stock exchange it belongs 100% to SAIC Group which owner is the
Shanghai Government.
* China South Industries Group Corporation hold shares of Chang'an and JMCG.
Chery
Geely
Great Wall
BYD
Figure 29. Some of the main car manufacturers companies ownership and Government support.
Port of Barcelona Chair of Logistics 29
etc.

Automotive Industry in China
.
Joint Ventures
MNC’s are not allowed to be independent. They can only manufacture in China
if they establish a Joint Venture with a local company.
They focus on high/medium-end cars.
The contracts signed among the MNC’s and the Big Three specify that the cars
manufactured in China will not be sold overseas. However, we have found some
exceptions.
The contracts signed among the MNC’s and the Big Three specify that the
MNC’s cannot use the JV’s dealers network but they have to set up their own
distribution channel.*
Most of MNC’s state that they have no intentions of delocalizing the EU and US
production to China or other Asian countries.
*MNC’s can both, sell the cars produced by their Joint Ventures in China, or import and sell the cars they
produce themselves abroad. For this second case, MNCs are not allowed to use the JVs dealer network.
The big 3
They are supported by the central government or regional government.
The Big three want to focus on high/medium-end cars.
The big three are focused on the Chinese market which is in huge expansion.
SAIC states to have no intention to export.
SAIC is exporting small quantities but they affirm is more for acquiring
knowledge from abroad than for a real commitment to conquer foreign markets.
New players
They are supported by the local governments.
They want to focus on small low-end cars.
They state selling abroad is one of their main objectives.
They will sell first to developing countries and later to EU and US.
Experts in the industry consider these statements have two objectives:
Marketing strategy: each time one of these companies announces the
launching of one model abroad, the sales inside China increase.
They ask for financing to the government to support their international
expansion and later they use the resources for other purposes.
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Automotive Industry in China
Market shares of major passenger car manufacturers in China
33%
3%
3%
4%
5%
5%
10%
6%
9%
7%
8%
7%
SGM
SVW
FAW-VW
Chery Auto
Beijing Hyundai
Guangzhou Honda
Tianjin Faw Toyota
Tianjin Xiali(daihatsu)
Chang'an auto(suzuki/ford)
Geely Auto
Dongfeng Kia
Other companies
Figure 30. Market share of major passenger car manufacturers in China, based on sales during
2006. Source: SAIC Group.
(Units)
600,000
500,000
400,000
300,000
200,000
100,000
0
Sales volume of majority passenger car manufacturers in China
Joint Ventures
SAIC GM Wuling
Shanghai GM
FAW-VW
Shanghai-VW
Guangzhou Honda
FAW Toyota
Dongfeng Nissan
Beijing Hyundai
Chang’an Ford Mazda
Dongfeng Peugeot Cit...
Tianjin FAW
Guangzhou Toyota
FAW Hainan
Dongfeng Honda
Chang’an Suzuki
Dongfeng Yueda Kia
Changhe Suzuki
Brilliance BMW
Beijing Benz-Daimler...
Zhengzhou Nissan
2007 2006
Figure 31. Sales volume of major passenger car manufacturers in China: Joint Ventures (Top
range by 2007). Source: Inter China Analysis (2007)
(Units)
400,000
300,000
200,000
100,000
0
Chery
Chang’An
Sales volume of majority passenger car manufacturers in China
Domestic Automakers
Geely
Hafei
Brilliance Auto
BYD
FAW
Great Wall
Jianghuai (JAC)
2007 2006
Soueast
Changfeng
Nanya Auto (Fiat)
SAIC
Jiangling
Zhongxing
Figure 32. Sales volume of major passenger car manufacturers in China: Domestic Automakers
(Top range by 2007). Source: Inter China Analysis (2007)
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Automotive Industry in China
The cars produced in China by the joint ventures in general have similar quality than
the ones produced in Europe or U.S. Consequently could pass the homologation
process without problems. Some people interviewed argued thought that in the
EuroNCAP ranking test these made in China cars would have lower punctuation that
the same cars made in Europe or US. The reasons are mainly two: first not all the
components used in the made in China cars are the same than the ones made in the
West; the quality of some of the components can be lower, lowering though the
overall performance of the car. Second, as the made in China cars are for the domestic
market that is less demanding in quality, there is no reason to produce higher quality
and consequently more expensive cars. Consequently, if the joint ventures want to
export cars to West Europe or U.S., they cannot use the same cars produced for the
domestic market to be sold abroad; they have to produce separate series of cars that
would have higher performance. From a production point of view this would be very
inefficient. Consequently they would just improve all the production independently of
their destination.
We have been told that some JV’s have plants only for export. For example one JV of
Honda is exporting cars to Western Europe. These cars meet the European
requirements in emissions and security.
The other joint ventures that are exporting are doing it mainly to Eastern Europe,
Russia (despite of recently the Russian exports have decreased considerably because
the government has increased the taxes in imports) and North Africa. GM exports to
Ukraine. Nissan exports a small volume to Eastern Europe. Changfeng Motor (JV
with Mitsubishi Motors) plan to begin selling in Europe around 2011.
Some experts say that the cars made by Chinese local companies, Big 3 and New
Players, are still far away to reach the quality standards required by the European
consumers. The reason why Chinese companies might show their cars in the
International fairs like recently in Detroit, and keep announcing the sales in Europe
and U.S. is a marketing strategy. The Chinese consumers might think the quality of
these cars is better if they are sold in Europe or U.S.
The cars from the big Chinese companies and the New Players are exported to
developing countries because the requirements to sell these cars in those countries are
much lower. In general, Chinese cars do not accomplish the emissions standards
requirements. SAIC, (Shanghai Automobile Industry Corporation) export to Latin
America directly from China (without triangulation in Europe). The main market for
SAIC in the Mediterranean is North Africa. The volumes are increasing as we can see
in Annex V.
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Automotive Industry in China
1.1 SWOT analysis of the main group players in the market
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Automotive Industry in China
1.2 Plans for expansion of car makers
In this chapter, first of all we will focus on Chery and Geely, two of the most
successful Chinese companies. We will analyze what have made them successful and
which plans they have in the pipeline. Second, we will talk about the new energy
vehicles. China, that in 2008 produced only 2,000 units of hybrid and electric vehicles,
has as an objective to produce half million of these vehicles in 2011.
a) Chery and Geely
Chery and Geely are two of the local Chinese companies that are being very
successful. The reason might be in their ability to recognize at an early stage that the
Chinese market preferred smaller vehicles than the ones that were sold by the Joint
Ventures (Joint Ventures sold the same cars that were sold in Europe and the U.S.).
(Units)
400,000
300,000
200,000
100,000
0
Evolution of vehicle production
79,565
185,588
302,478
380,817
92,558
149,532
219,512
204,331
2004
2005
2006
2007
Figure 33. Evolution of automobile production for Chery and Geely. Source: Inter China
Analysis data (Originally from www.autoingo.gov.cn )
The decision by the Government to change the tax policy promoting the purchase of
new cars in April 2006, gave an advantage to Chery and Geely. The government
decided to lower the consumer tax rates on vehicles between 1 and 1.5 liters, going
from 5% to 3%. At the same time, vehicles with engines over 2 liters would have to
pay a tax of up to a maximum of 20%. The government also lifted the restrictions that
existed on the circulation of small displacement cars on some of the main avenues of
Beijing and other cities 24 . In the following paragraphs we will analyze in more detail
Geely and Chery.
24 Professors Nueno Case Study: Geely’s International Strategy.
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Automotive Industry in China
Geely
Chery
Geely is China’s first and largest private auto company. Currently, it is in the
process of bidding for Ford’s Volvo. Other Chinese companies like SAIC,
Chang’an and Chery have also showed interest in buying Volvo. However, it
seems Geely could be the one that does it. Nevertheless, many opposite
opinions in the news have been found. It is even said, that Geely’s interest in
buying Volvo is only a marketing strategy to win popularity in foreign
markets. On the other hand, there is no doubt that for Geely would be much
easier to access the developed markets by buying Volvo than by beginning
from scratch. Even so, acquisitions are always complicate and the success
cannot be taken for granted.
We have been told that Geely is going to try to enter the European market first.
In August 2007 Fiat signed an agreement with Chery to set up a 50/50 joint
venture in Wuhu, Anhui Province. The plant was supposed to start in 2009
with the assembly of 175,000 Fiat, Alfa Romeo and Chery models annually.
However, the government is holding back the approval of the plan due to fears
of overcapacity. Furthermore, Chery has been strongly affected by the world
recession and has given up its expansion plans.
Conducting this research we have found out that Chery is working very hard
to introduce its cars to U.S. first. The U.S. government is going to ask them to
invest a big amount of money in U.S. to allow them to sell the cars there. We
have been told that they are not working yet to introduce the cars in Europe 25.
However, once they have entered the U.S. market probably they will focus
their efforts in entering the European market.
There might be some relevant contradictions about Chery’s plans. On the one
hand, Chery states that they have not passed the European homologation,
statement that has also been confirmed to us in the interviews. On the other
hand, according to the news and confirmed by a logistic operator company,
Chery’s cars are already in western Europe. However, our most reliable
information is that Chery is in process of entering the U.S. market while they
have put in stand by the plans to enter the European market.
Interestingly, Geely plans to enter the European market first and Chery plans to start
exporting to the US, the different approach for these companies might have much to
do with the fact that U.S. regulations are more restrictive in safety issues and
European regulations are more restrictive in gas emissions.
Nevertheless, recently the Chinese government has told the Chinese car
manufacturers that they should not rush to enter the European and U.S. market. The
Government suggests concentrating in exporting to developing countries first. The
real impact of this message from the government on the Chinese automotive industry
is not clear yet.
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Automotive Industry in China
b) New Technology cars
There are two Chinese companies pushing strong for the development of hybrid cars
that could be exported worldwide: BYD and Chery.
BYD launched the F3DM, a hybrid car, on December 15, 2008. In fact it is a
“combination of EV (electric vehicle mode) and HEV (hybrid electric vehicle mode)”
or a plug-in hybrid electric vehicle (PHEV) that can be recharged on an ordinary
electricity outlet. The particularity or competitive advantage of this car is that it does
not depend on a professional charging station. The founder and chairman of BYD
said at the launch ceremony in Shenzhen that the company plans to sell the DM cars
(F3DM, F6DM) in North America and Europe in 2 – 3 years.
Figure 34. e6 BYD electric car.
Wang Gang, China’s Minister of Science and Technology said in a weekend
conference in Tianjin that “the country plans to expand investment in developing fuel
efficient, hybrid and electric vehicles in the short-and mid-term and fuel cell vehicles
in the long-term.” He also added that “speeding up the commercialization process of
fuel efficient and new energy vehicles will be a primary task for China’s auto
industry” 25 .
1.3 Perspectives of consolidation in the industry
In this chapter, first we will summarize the government plans to revitalize the
automotive industry in China to overcome the current recession and to build big local
companies able to compete in the global market. Secondly, we will review which are
the expected mergers and acquisitions among the Chinese automobile manufacturers.
a) Government plans to enhance the industry
At the end of 2008, Chinese government announced a plan for “revitalizing and
adjusting China’s automotive industry” because it is expected to be one of the pillars
in the Chinese economy:
In April 2009, the government was expected to announce new policies to
stimulate the automobile financing.
25 China Automotive Review December 2008.
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Automotive Industry in China
In June 2009, the government will announce the policies to encourage the new
energy vehicles.
In July 2009 the government will announce new policies to encourage the
consolidation in the automotive industry. The objective is to facilitate the
mergers & acquisitions.
In December 2009 the government will announced new policies to encourage
credit for automobile consumers and will announce the plan to construct the
infrastructure for the new energy vehicles.
b) Future mergers and acquisitions
As said before, it is very likely that the automotive industry in China will go through
a period of massive consolidation. 100 or 120 car manufacturers in China is more
than a healthy industry can hold in one country. The government is pushing the
companies to consolidate with the objective to have in a near future 5 big companies
whose production capacity can be over 2 million units per year and that can compete
with the traditional world leaders. Beijing also wants to build several smaller auto
groups which can produce 1 million units per year. 26 The Government Plan suggests
to concentrate 90% of the domestic market share in 10 car manufacturers. However
CICC (China International Capital Co. Ltd ) 27 reported that there will be 6 big players
not five. According to them, the leaders in the restructuring will be FAW, SAIC,
Dongfeng, Southeast Motor, BAW (Beijing Auto Work) and GAIC (Guangzhou
Automobile Group Co., Ltd).
In the following months we expect to find more and more news about mergers and
acquisitions in the automotive industry in China. Furthermore, China government has
asked to most of the manufacturing industries to slow down their intentions to merge
with foreign enterprises. This is a signal that they want the Chinese companies to
concentrate their efforts in building big Chinese companies.
This process of consolidation of the industry began some years ago. Among the Big 3,
the most important milestones are the following ones:
In 2002, FAW strengthen itself through the acquisition of TJAM and reached
1,7 million units of production capacity in 2008.
In Dec. 26th 2007 SAIC became the first giant in China through the
acquisition of NAC (Nanjing Automobile Group Corporation) and reached 2
million units production capacity in 2008. In the interviews we were told that
in 2009 SAIC will focus on the management to enhance the profit instead of
mergers & acquisitions. They told us that the key point is not to fail in the
26 The production capacity of China local automakers are too far away from the foreign players, for
example, the whole production capacity of China whole vehicle makers (including 80 groups) even can
not reach that of Honda or GM alone.
27 CICC is and investment bank in China established in 1995, its shareholders are Chinese and foreign
financial institutions and companies like Morgan Stanley, China Jianyin Investment Limited and the
Singapore government.
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Automotive Industry in China
mergers. Those who succeed in this process of consolidation of the industry
will lead the automotive industry in China.
Dongfeng group merged with Hafei in 2008. From this merger, Dongfeng has
benefit from a stronger brand, an important operational base in Shenzhen, and
a capacity of 1,3 million units a year.
Other milestones are 28 :
GAIC built a joint venture with HINO (Guangqi HINO Motors) to expand in
the South of China;
Chang’an developed his own branded cars and new energy vehicles through
the acquisition of Jiangling;
2007 China South bought Shanxi Auto Group;
2007 SAIC, Nanjing IVECO and Chongqing Hongyan built a joint venture
together; Zhejiang Zhongtai bought 70% share of Jiangnan auto to develop
their passenger car business;
2007 Liaoning Shuguang, Liaoning Dandong Huanghai and Changzhou
Changke built a joint venture together.
Other expected movements are:
Anhui province plans to merge their own automotive industry to build a new
giant auto group that can compete with foreign companies. Anhui provincial
government, following the indications of the central government is pushing
hard to have the automakers in their province to consolidate. The idea is to
have the three big auto groups from Anhui province: Jac 29 , Chery, CAMC
merge together. As the three companies are controlled by the local
government of Anhui Province and all are self-brands and they have no joint
ventures with foreign companies, it will be easier to merge these companies.
On the news, regarding JAC and Chery, we have found two possibilities:
Jac will become one of the share holders of Chery, and Chery will be pushed
to be a listed company together with Jac.
Merge Jac and Chery together to become Anhui automotive group. (2009
March. 3rd. Jac press released that the merger is under discussion).
On other news, we have found that the Plan encourages 4 giants (SAIC, Dongfeng
Motor, FAW and Chang’an) to lead the merger in the domestic market. Other 4
companies in different regions will be the second group encouraged: Beijing Motor in
Beijing, GAIC in Guangzhou, Chery in Anhui and Sinotruck 30 in Shandong. Except
28 Some of these companies are small local companies (they are not in Annex II).
29 Jac used to have the biggest profit growth rate in China automotive industry, and he used to focus on
the light weight truck, commercial vehicle, chassis and MPV. But all of these advantages ended with
its entrance of passenger car. Its profit began to go down since 2008.
30 Local producer in Shandong province that focus on heavy-duty truck
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Automotive Industry in China
Sinotruck, the other 7 groups all ranged into top 8 in sales volume and together took
75.5% market share.
The possibility for the merger between big giants and medium size enterprises are
relatively smaller because they need the approval of the regional governments.
2. Decision making process along the logistic
chain
Figure 35. Car industry logistics chain simplified overview.
In the past was said that who controls the two extrems in the supply chain has the
power over the whole chain. However, since the shipping companies entered the
logistics business, they play a very important role in the decision making process.
Among the supply chain for cars, sometimes these companies have much higher
weight than the rest of the companies. That is for example the case of NYK the
biggest shipping company for RoRo transportation. NYK has restructured the
company and they want to focus in logistics because they believe is where most of the
value added is. NYK has terminals in Zeebrugge, Anvers, Gioia Tauro and Limassol
(Cyprus). It also has shares in the four main RoRo terminals in China: Shanghai,
Tianjin, Dalian and Guanzhou. They will also have a terminal in the Port of Mundra
in India.
NYK is using the Port of Gioa Tauro as entry port for the cars in the Mediterranean.
From Gioa Tauro the cars are distributed in the Mediterranean by feeder. A big
percentage of the cars go to North Africa. The company that ships these cars by
feeder is called UECC. This company belongs 50% to NYK and 50% to WWL.
Nanjing Port, Chery RoRo terminal in Wuhu, Wuhan Port and Chongqin Port (this
last one has three small RoRo terminals: Chongqin, Fuling and Wanzhou) are the
main Ports with RoRo terminals in the Yangtze River.
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Automotive Industry in China
Yangtze River has three major operators:
1. Yangtze shipping company also called Changjiang shipping company (CSC) 31 ;
2. Mingsheng in Chongqing;
3. Ansheng shipping, which is under the control of Shanghai Anji (Shanghai
Anji only navigates down to Wuhan while Mingsheng shipping and
Changjiang shipping cover the whole Yangtze River).
The big international shipping compaines can use the current facilities of these
domestic companies. In other words, they seem not to be thinking in acquiring
terminals or navigate in the Yangtze river but in stablishing alliances with the
companies that control the river.
Most of the shipping of cars are by the following companies:
NYK has an alliance with COSCO;
ToyoFuji is an in house shipping company of Toyota and they have and
alliance with CSC;
K-Line has an alliance with CGS;
MOL has an alliance with Sinotrans;
COSCO and Sinotrans are leading shipping lines in China. They provide North-South
service (regular service between Tianjin, Shanghai, Guangzhou and down to Hainan
from the south to north line).
Some experts in the logistics industry in China think that the Yangtze River will play
a major important role in China in a near future. Due to the increase of labor cost in
East China, many companies are moving their production centers to the west. As the
water transportation is cheaper than the road transportation and China lacks of a good
land transportation infrastructure, most of these companies are moving to cities along
the Yangtze River.
However, one logistics company told us that what might happen is that once the train
following the Yangtze River, from Chongqing to Shanghai is constructed, the cargo
will be moved to the coast by train and not by ship. They think that the navigation in
the Yangtze River is not easy. The train could cut down the transportation days from
10 to 5 days from Chongqing to Shanghai.
31 CSC RoRo, a company belonging to CSC Group, it is said to be the first and largest RoRo shipping
company in China, and has the highest RoRo market share and wide customers group; however we
have not verified this information. Now, probably it owns the largest RoRo fleets in China. Its business
network can cover Yangtze River, domestic coast and ocean. CSC RoRo has set up good and longterm
relations with domestic automobile manufacturing company in China. Its customers are: Toyota,
FAW, Shanghai VW, Dongfeng, Haima, Chery, etc.
Changjiang Shipping is going to merge with Sinotrans. CSC has two main companies, one is in the
Yangtze River, another is in Shenzhen. The company from Shenzhen has built a JV with ToyoFuji
named CFML.
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Automotive Industry in China
If the Yangtze River becomes a strategic pillar in the logistics chain, two things can
happen; several cities along the river can concentrate car manufacturer’s plants; each
of these cities then will have a RoRo terminal to ship the cars to Shanghai Port RoRo
terminal; or one city concentrates most of the production of cars in the Yangtze River.
In this last case, a big RoRo Terminal will be developed in that city. In the last
scenario, will be interesting to try to anticipate which is going to be this city in order
to establish alliances.
Some logistics service providers or distributors helped introduced in Europe Japanese
and Korean brands. In our interviews we have been told that these same companies
are approaching now Chinese car manufacturers. Remember that the image of
Japanese cars 40 years ago and Korean cars 15 years ago was the same as the image
of Chinese cars today.
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IV Scenarios and conclusions
1. Scenarios: development routes
1.1 Drivers
1. The recovery of the Chinese Economy might come sooner than the European and
the U.S. economy’s recovery. Automotive companies in Europe and the U.S. are
among the most affected by the recession. Chinese automotive companies can react in
different ways to this fact.
2. Chinese government has labeled the Automotive Industry as a main pillar to
support the development of the national economy. As it has been analyzed in the
report, the current situation in the car industry in China is not sustainable. The
Chinese automotive industry cannot have a healthy development with the existing
surplus of manufacturers (around 100 car manufacturers).
Consequently, the government is pushing for the consolidation of the industry. The
government has a plan to reduce the number of car manufacturers in China to a group
of 5 Big companies and some few other medium ones.
Since the Chinese government controls the bank loans, it has a big power in the
decision making process of any merger or acquisition. In fact, the government could
almost determine which companies are merged together. The bigger the companies
resulting from the consolidation, the more power they will have. Besides, this new
companies will have enough capacity to begin to export massively. However, we
should not underestimate the complexity of the mergers & acquisitions.
3. China is facing tremendous environmental problems. The main ones are related
to the water availability and quality, and the air quality in the over crowded Chinese
cities. The situation has reached a critical degree where people’s health is at risk. The
government is taking action to avoid irreversible damages by the pollution and to
improve the quality of living.
4. With China entrance in the WTO, sooner or later the automotive industry will be
liberalized. When the moment arrives, the MNCs will not be forced to have a
Chinese partner. In this scenario, MNCs will choose to establish an independent
operation in China and therefore, the JVs will disappear. However it is not clear what
will happen in the market. Some people believe that Chinese manufacturers will buy
the assets from the JV. Other people defend that MNC will be in a very weak position
in the domestic market because, even if they acquire the Chinese part of the JV, from
one day to another they will lose their dealer network.
5. Protectionist politics worldwide: Chinese companies exporting abroad will not
only depend on their own capabilities to produce cars acceptable by the customers
and standards of the different countries. The protectionist policies that the
government may put in place to protect their national car manufacturers will
definitely play a main role.
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1.2 Tendencies
According to the structure followed in the third part of the report: Micro Analysis, we
have divided the scenarios in the three main groups of players of car manufacturers in
China: the Big 3, the Joint Ventures and the New Players. According to the drivers
considered above, the tendencies for these groups and the main companies inside
these groups will be developed.
a) Big 3 (or Big 5)
In the short term we will continue to see a period of mergers & acquisitions driven
mainly by the Government plan to consolidate the industry. We will see the
emergence of 5 big automotive groups in China that will have the necessary scale to
compete in the international market. SAIC and FAW are quite clear that will be
among the 5 chosen by the central government. The question mark is which will be
the other three. There are different opinions.
One possibility is a merger between DFM, GAIC and ChangChun. We believe that
since DFM is one of the actual Big 3, it will probably keep his position among the
Big 5. However it cannot be taken for granted.
Other people talk about a big group from Anhui appearing after the consolidation of
Chery, JAC and CAMC.
The Chinese government could also decide to support FJMG as one of the five big
ones. Some sources consider Southeast is not to be underestimated either; however,
we think there are few chances it will become one of the Big 5 leading car
manufacturer in China.
Driven by the fact that probably the Chinese economy will recover faster from the
recession than Europe and U.S. we can have two scenarios:
On one hand, Chinese automotive companies, with the finance support of the
government could decide to buy out western companies.
On the other hand, Chinese companies could wait for some of the car
manufacturers in the west to go bankrupt and then buy their assets.
However, although many people is speculating about one or both of these two
scenarios, it is not so clear that Chinese car manufacturers will be interested in
acquiring western companies or buying their assets. We need to keep in mind that
western companies are having many difficulties due to their labor rigidities and poor
financial situation.
b) JV’s
Driven by the liberalization of the industry, that will happen in a near or mid term
future, the JV will have no reason to exist. In this scenario on one hand MNCs will
lose the dealer network and be forced to begin from zero to develop their own
commercial network. On the other hand, MNCs would prefer to operate
independently because of higher control and lower risk of losing know-how. The
local Chinese partners in one hand are making a good profit from these JVs because
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Automotive Industry in China
most of their revenues come from JV sales. However, on the other hand, once they
are able to produce their own cars with a similar quality of those produced by the JVs,
they believe that Chinese consumers will prefer to buy Chinese brands.
JVs seem to be focused in the China market and we have not found any trace or
tendency of change. JVs state to have no plans and no interest in exporting massively
China made cars. However, we have seen Honda is already exporting cars and some
other JVs are setting plants only for export.
Nevertheless, we should not forget that they are still in the battle to win market share
in China. Although the JV’s have a big market share compared to the local companies,
the market is still very fragmented and the each time better performing Chinese car
brands are a real threat.
Furthermore, there are some things that the JV’s should take into account:
The risk of losing their know-how seems to be much higher than the potential
cost savings.
It seems quite sure that China made cars will not have the quality of the
European or U.S. made cars yet. This is because of the supplier’s standards
and raw materials quality.
The governmental pressures in Europe or U.S. to protect the automotive
industry are not negligible.
For big quantity exports the cost advantage of China is not enough to
counteract the transportation and logistic expenses. Exporting from China
only makes sense for small quantities. For big quantities it makes more sense
to localize the production.
c) New Players
Some of the New Players can leverage on the financial support of the government to
acquire or merge with other companies. We should not forget that mergers have many
risks, and that the resulting company may not be able to take advantage of the
potential synergies. Consequently, in one hand these companies could become bigger
and stronger but they could also lose competitiveness and fail in the process of
integration after the mergers. Bigger companies could have more necessity in
exporting. They could use the overcapacity built in China in recent years before the
actual recession, to sell abroad. However, their export sales will clearly depend on the
protectionist tendencies worldwide.
In fact some of the New Players are announcing on the press their interest in
conquering Europe and the U.S. market. The companies that seem more likely to
reach this goal in a short term are Geely, Chery, BYD and Great Wall motors.
Geely planned to sell cars in Europe in 2007 but it did not manage to reach the market
standards. Nowadays Geely is exporting to Russia, Ukraine and the Middle East. It
plans to sell in Europe starting from countries that have no major car industry of their
own like the Netherlands or Austria. Later it plans to export to developed markets
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Automotive Industry in China
with a strong local car industry, such as France, Germany, Spain or the United States.
Geely’s plan is to be able to do so on 2011.
BYD Auto also plans to begin selling in Europe around 2011.
We believe that Great Wall is a company that is worth keeping an eye on. They
maintain a low profile compared to Chery or BYD. Although they also produce
passenger cars (See Annex III), their most successful business is exporting pick-ups.
We think it might be possible in a short time to see Great Wall pick ups driven in
West European countries. As this company is well known for its pickups and not for
its passenger cars, we have not studied it in detailed. However we consider it a good
company to approach.
During the interviews conducted for this research, we have learned about the hidden
intentions of the New Players in showing off that they want to export massively. First
of all, it is a marketing strategy: each time one of these companies announces the
launching of one model abroad, the sales inside China increase. Secondly, they ask
for financing to the government to support their international expansion and later they
use the resources for other purposes.
Another tendency is that Chinese car manufacturers, mainly the main players, are for
the first time making great efforts and spending money on research to develop their
own brand affordable clean energy vehicles (electric and hybrid cars). This is driven
by the environmental pressure enforced by the Chinese government. Previously other
brands of cars like Toyota have developed clean energy vehicles. However, these cars
were targeting high end and environmentally sensitive consumers. Chinese brands
might have a different approach. They might try to produce a low consumption cheap
car. This car might generate a large amount of sales since it would target a much
larger population inside and outside China.
2. Conclusions
The main regions for the massive export of China made cars are Eastern Europe and
North America. The exports to North Africa are much smaller than the ones to East
Europe. The last three years the exports have been decreasing. However, from 2004
to 2006 they increased 4 times. Some hubs will appear for the distribution of the cars
exported to Western Europe and North Africa.
In relation with the scenarios described in the chapter tendencies, we recommend to
keep studying some of the companies among the New Players. These companies,
which are already exporting to developing countries, are likely to start exporting to
developed countries in some years. These companies do not have a good dealer
network in foreign countries. They need to build alliances and probably they will
approach the same logistic companies and distributors that some years ago introduced
the Japanese and Korean cars in U.S. and Europe.
We also recommend keeping studying the process of delocalization of the industry
towards the west of China and the role that are going to play the terminals in the
Yangtze River.
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Automotive Industry in China
Finally, given the many changes expected in the industry in China, we have to be
aware that things will change very fast and new scenarios could appear. Furthermore,
in China, it is important to keep in mind the high influence that the government has
on the companies. Consequently, we estimate very valuable to pay attention to the
new policies implemented by the government to be able to extrapolate which will be
the role played by each car manufacturer in the future. Particularly, this will allow us
to estimate the brands that will start to massively export cars from China.
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Automotive Industry in China
V Annexes
1. Relations established between foreign and local car manufacturers.
2. Car manufacturers in China.
3. Car models produced in China.
4. Summary of some relevant companies.
5. Export and import data of Passenger Cars.
6. Registration volume of imported passenger cars by origin, brand and model.
7. Registration volume of top 30 imported passenger cars models in top five
administrative units.
8. Comparative of data from different sources of information.
9. Overview of the main RoRo terminals in China.
10. Homologation in EC (EWVTA) (list of Applicable directives).
11. Overview of the production centers situation.
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Annex I. Relations established between foreign and local car
manufacturers
Note: GAIC also called GAGC.
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Annex II. Car manufacturers in China
Chinese Name English Name Chinese Name
德国大众汽车股份公司
English Name 2006 2007
1 FAW-VW
Tianjin Faw Toyota
Sichuan FAW Toyota
Changchun Fengyue
中国第一汽车集团公司 FAW
奥迪汽车股份公司 VWAUDI AG 345,318 461,369
2 land Cruiser Prius 中国第一汽车集团公司 FAW 丰田汽车公司 TOYOTA 219,466 282,632
3 FAW-Haima 中国第一汽车集团公司 FAW 日本马自达(战略合作伙伴) MAZDA(Japan)
4 Shanghai VW 上海汽车集团股份有限公司 SAIC 德国大众汽车股份公司 VW 349,088 456,464
5 Shanghai GM 上海汽车集团股份有限公司 SAIC 美国通用汽车公司
通用汽车中国公司
GM 403,402 495,405
6 SGM Norsom 上海汽车集团股份有限公司 SAIC
上海通用汽车有限公司 GM(China)GM(Shanghai)
上海汽车集团股份有限公司
SAIC
7 SAIC GM Wuling
柳州五菱
Liuzhou Wuling 美国通用汽车公司 GM 408,432 496,628
8 Dongfeng Peugeot Citroen 东风汽车公司 Dongfeng 标致雪铁龙集团 PSA 201,318 207,255
9 Zhengzhou Nissan 东风汽车有限公司 Dongfeng 日产汽车公司 NISSAN 6,543 13,123
10 Dongfeng Nissan 东风汽车有限公司 Dongfeng 日产汽车公司 NISSAN 203,537 272,196
11 Dongfeng Honda 东风汽车有限公司 Dongfeng 本田公司 Honda 63,373 127,042
东风汽车有限公司
Dongfeng
12 Dongfeng Yueda Kia 江苏悦达投资股份有限公司
Jiangsu Yueda 韩国起亚自动车株式会社 Kia motors corporation 115,000 101,436
13 Changan Ford Mazda 重庆长安汽车股份有限公司 Chongqing Chang‘an 福特汽车公司 / 马自达汽车公司 Ford / MAZDA
SUZUKI Motor Corporation
135,571 217,848
铃木株式会社/双日株式会社
SUZUKI(China)
14 Chang'an Suzuke 重庆长安汽车股份有限公司 Chongqing Chang'an 铃木(中国)投资有限公司
SOJITZ 112,097 108,230
15 Guangzhou Honda 广州汽车集团股份有限公司 GAIC 本田工业技研株式会社 Honda 260,096 295,299
16 Guangzhou Toyota 广州汽车集团股份有限公司 GAIC 丰田汽车公司 TOYOTA 61,254 170,294
17 Beijing Hyundai 北京汽车工业控股有限责任公司 BAW 韩国现代自动车株式会社 Kia motors corporation 290,011 231,137
18 Beijing Benz 北京汽车工业控股有限责任公司 BAW 戴姆勒-克莱斯勒股份公司 DaimlerChryslerAG 21,308 19,730
19 BMW-Brilliance 华晨中国汽车控股有限公司 CBA 宝马集团 BMW 23,735 32,249
20 Nanjing Fiat 南京跃进汽车集团公司 Nanjing Yuejing
Jiangxi Changhe aviation
意大利菲亚特汽车股份公司 FGA 31,898 19,691
江西昌河航空工业有限公司
Industries 铃木株式会社
SUZUKI Motor Corporation
21 Changhe Suzuki
江西昌河汽车股份有限公司
Changhe Auto 日本冈谷钢机株式会社
OKAYA 116,170 92,024
22 Changfeng Motor 长丰集团 Hebei Changfeng 日本三菱自动车工业株式会社等 MITSUBISHI MOTORS,etc
23 Southeast Motor 1
东南汽车
一汽华利(天津)汽车有限公司
FJMG 日本三菱自动车工业株式会社等 MITSUBISHI MOTORS,etc 40,056 45,679
28 FAW-Huali
(中国第一汽车集团公司控股) FAW-Huali
29 FAW-Hongta 一汽红塔云南汽车制造有限公司 FAW-Hongta
30 FAW-jilin 一汽吉林汽车有限公司 FAW-jilin
31 FAW-car 一汽轿车股份有限公司
天津一汽夏利汽车股份有限公司
FAW-car
32 FAW-Xiali
(中国第一汽车集团公司控股) FAW-Xiali
25 SAIC Motor 上海汽车集团股份有限公司 SAIC Motor
26 SAIC Yizheng 上汽集团仪征汽车有限公司 SAIC Yizheng
27 Nanjing MG 南京名爵汽车有限公司 Nanjing MG 2
44 Hafei Motor 哈尔滨哈飞汽车工业集团有限公司 Hafei Motor 3
Sales (Units)
202,862 167,165
33 Dongfeng Liuzhou 东风柳州汽车有限公司 Dongfeng Liuzhou
34 Dongfeng Yuan 东风渝安车辆有限公司 Dongfeng Yuan
35 Beijing Automobile works 北京汽车制造厂有限公司 Beijing Automobile works 10,061 11,343
36 Beiqi Foton Motor 北汽福田汽车股份有限公司 Beiqi Foton Motor
37 Chery Auto 奇瑞汽车股份有限公司 Chery Auto 302,478 380,817
38 Geely Group 浙江吉利汽车有限公司 Geely Group 204,331 219,512
39 Geely Shanghai Maple 吉利控股集团上海华普汽车有限公司 Geely Shanghai Maple
40 BYD Auto 上海比亚迪汽车有限公司 BYD Auto 60,116 100,126
41 Great Wall Motor 长城汽车股份有限公司 Great Wall Motor 40,062 64,732
42 Tianjin Meiya Auto 天津天汽集团美亚汽车制造有限公司 Tianjin Meiya Auto
南京汽车集团有限公司
43 NAC Soyat
无锡新雅途公司 NAC Soyat
45 Anhui Jianghuai Auto 安徽江淮汽车股份有限公司 Anhui Jianghuai Auto
46 Brilliance Jinbei 沈阳华晨金杯汽车有限公司 Brilliance Jinbei
47 Jiangnan Auto 江南汽车制造有限公司 Jiangnan Auto
48 Guizhou Aviation 中国贵州航空工业集团公司 Guizhou Aviation
49 Jilin Tongtian 吉林通田汽车有限公司 Jilin Tongtian
50 Hebei Zhongxing 河北中兴汽车制造有限公司 Hebei Zhongxing
51 Zhejiang Gonow Automobile 浙江吉奥汽车有限公司 Zhejiang Gonow Automobile
52 Qingling Motors(Group) 庆铃汽车(集团)有限公司 Qingling Motors(Group)
53 Chengdu Xindadi 成都新大地汽车有限责任公司 Chengdu Xindadi
54 JiangXi Huaxiang Fuqi 江西华翔富奇汽车有限公司 JiangXi Huaxiang Fuqi
55 Sichuan Automobile 四川汽车工业集团公司 Sichuan Automobile
56 Dandong Huanghai 辽宁曙光汽车集团股份有限公司 Dandong Huanghai
57 Chongqing Lifan Cars 重庆力帆集团汽车有限公司 Chongqing Lifan Cars
58 Shaanxi Aircraft 陕西飞机工业集团有限公司 Shaanxi Aircraft
59 Polarsun Automobile 中顺汽车控股有限公司 Polarsun Automobile
4
Chinese Company Foreign Company
No. Name
60 Rongcheng Huatai 荣成华泰汽车有限公司 Rongcheng Huatai
1. Southeast Motor in China also called Soueast Motor or Dongnan Motor.
2. Nanjing MG now has become SAIC-Nanjing MG
3. Dongfeng Group has bought Hafei Motor in 2008
4. Source: Inter China Analysis
Car Joint Ventures
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Annex III. Car models produced in China
Maker
Passenger Car by Origin and Brand
Origin Brand
E Audi Note: E:European
E Sagitar N:North American
E Magotan J:Japanese
FAW-VW
E
E
Jetta
Bora
K:Korean
C:Chinese
E New Bora
E Golf
E Caddy
E Passat
E Santana
E Octavia
E Polo Hatchback
Shanghai VW
E Polo Jingqing Hatchback
E Polo sedan
E Polo Jingqu sedan
E Cross Polo
E Golf touran
E Benz E
E Benz C
N Chrysler 3000C
Beijing Benz
N
N
Sebring
Cherokee
J Pajero Sport
J Outlander
C Utility Vehicle
BMW Brilliance E BMW
E Citroen Triomphe
E Peugeot
Dongfeng Peugeot Citroen
E
E
Fukang
Citroen Elysee
E C2
E Citroen Picasso
E Perla
Nanjing Fiat
E
E
Palio
Palio Weekend
E Siena
N Buick Royaum
N Buick Park Avenue
N Cadillac
N Buick Regal
N Buick LaCrosse
N Epica
Shanghai GM
N Excelle Sedan
N Excelle HRV
N Excelle wagon
N Sail Sedan
N Sail S-RV
N Aveo
N Lova
SGM Norsom N Buick
SAIC GM Wuling
N
C
Spark
Wuling Utility vehicle
N Mondeo
N Mondeo Zhisheng
E Volvo
Changan Ford Mazda
N
J
Focus
Mazda 3
N Fiesta
J Mazda 2
N S-MAX
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Automotive Industry in China
J Crown Note: E:European
J Reiz N:North American
J Vios J:Japanese
J Corolla K:Korean
Tianjin FAW Toyota
J New Corolla C:Chinese
Sichuan FAW Toyota J Prado
Sichuan FAW Toyota J Land Cruiser
Changchun Fengyue J Prius
C Family
C Haima
FAW-Haima
C Freema
J Paladin
C Oting
C Tuyi
Zhenzhou Nissan
C Yumsun
J Teana
J Bluebird
J Sylphy
J Sunny
J Tiida
J Geniss
J Livina
Dongfeng Nissan
J Qashqai
J Civc
Dongfeng Honda
J CR-V
J Accord
J Fit
J City
Guangzhou Honda
J Odyssey
Guangzhou Toyota J Camry
Honda China J Jazz
J Liana
Changhe Suzuki
J Wagon
J SX4
J Swift
J Alto
Chang'an Suzuki
J Cultus
J Galant
J Lioncel
J New Lancer
J Freeca
J Soveran
N Chrysler Grand Voyager
N Dodge Caravan
Changfeng Motor
J Veryca
K Optima
K Cerato
K Qianlima
K Rio
K Carnival
Dongfeng Yueda Kia K Sportage
K Sontana
K Elantra
K Accent
Beijing Hyundai
K Tucson
K Terracan
Rongcheng Huatai
K Santa Fe
SAIC Motor C Roewe
B Xingfu Shizhe
FAW-Huali
S Terios
C Freewind
C Xingfu Shizhe
FAW-Honda
C Highland Trooper
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Automotive Industry in China
FAW-Jilin
J
C
Xenia
Jiabao
Note: E:European
N:North American
J Red flag J:Japanese
FAW-Car
J Mazda K:Korean
C Besturn C:Chinese
C Xiali
FAW-Xiali
C
C
Vizi
Vela
C Weizhi
Dongfeng Liuzhou C Space Gear
Dongfeng Yuan C Dongfeng Utility Vehicle
Beijing Automobile Works
C
C
BJ Series
Utility Vehicle
Beiqi Foton Motor
C
C
Chuanqi
MP-X
SAC Soyat
C
C
Soyat
Unique
Nanjing MG C MG
C Eastar
C A5
C A3
C Cowin
Chery Auto
C
C
QQ
A1
C Eastar Cross
C Riich II
C Karry
C Tiggo
C Freedom Ship
C LG-1
Geely Group
C
C
Vision
Haoqing
C Beauty Leopard
C Uliou
C Hisoon
Geely Shanghai Maple
C
C
Haifeng
Hysoul
C Marindo
C F6
BYD Auto
C F3
C Flyer(Auto based)
C Saibao
Haifei Motor
C
C
Lobo
Dingo
C Haifei Ulitily Vehicle
Jiangxi Changhe
C
C
Ideal
Changhe Ulitily Vehicle
C Zhixiang
C Benben
Chang'an Auto
C CM8
C JieXun
C Chang'an Ulitily Vehicle
Nanjing Chang'an C Nanjing Chang'an Ulitily Vehicle
C S-Driver
Jiangling Motors
C
C
Baowei
Land Wind
C Fasion
C Benjoy
Anhui Jianghuai Auto
C Refine
C Rein
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Automotive Industry in China
Brilliance Jingbei
(ZhongHua)
Jiangnan Auto
C Zunchi Note: E:European
C Junjie N:North American
C Kubao J:Japanese
C Grace K:Korean
C Badao C:Chinese
C Alto
C Fairy
C Jiangnan
Guizhou Aviation C Yunque(Rex)
Jilin Tontian C Glow
C Admiral
C Cruiser
Hebei Zhongxing
C Landmark
C Gwperi
C Safe
C Sing
C Pegasus
Great Wall Motor
C Hover
C GS50
Zhejiang Gonow Automobile C GX
C Qibing
Tianqi Meiya Auto
C Shunfeng
Qingling Motors(Group) C Rodeo
Chengdu xingdadi C Dadi
Jiangxi Huaxiang Fuqi C Fuqi
Sichuan Automobile C Yema
C Linghangzhe
C Aurora
C Tiaozhanzhe
Dandong Huanghai
C Qisheng
Chongqing Lifan Cars C Lifan
Shaanxi Aircraft C Shaanxi Aircraft Utility Veichle
ASAIC Yizheng C Yizheng Utility Veichle
Polarsun Automobile C Polarsun
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Automotive Industry in China
Annex IV. Summary of some relevant companies
Company Overview:
SAIC Motor Corporation Ltd. (“SAIC Motor” for short), whose predecessor was Shanghai
Automotive Company Ltd., was listed on Shanghai Stock Exchange in November 1997. SAIC
Motor is currently the leading manufacturer of passenger cars, the largest mini-vehicle maker
as well as an automotive maker that enjoys the biggest sales volume in China.
SAIC Motor is one of the companies of SAIC Group. SAIC Group, a Fortune Global 500
company, is China’s largest automobile manufacturer with around 20% market share in China
and almost 60,000 employees.
In 2007, SAIC sold 1,690,000 vehicles, ranking top among China auto companies. Among
the total, 1,140,000 were passenger cars and 500,000 were commercial vehicles.
SAIC Motor encompasses all of SAIC Group’s assets in automotive assembly, power train,
chassis, and vehicle electronics, as well as financial services.
SAIC Group is wholly owned by Shanghai Municipal Government.
Products:
Passenger cars: Roewe, MG (SAIC Motor), Wuling Utility vehicle, SangYong, etc.
Commercial Vehicles: Volvo, HongYan, Huizhong, etc.
Manufacturer bases:
Shengyang, Yantai, Qindao, Yizheng, Nanjing, Shanghai, Chongqing and Liuzhou
Domestic Layout:
Shenyang SGM Beisheng(40,000), Yantai SGM Dongyue(240,000, Qingdao SAIC-GM-
Wuling ( 50,000 ) , Yizheng SAIC Yizheng ( 120,000, Chongqing SAIC Hongyan
(20,000), Liuzhou SAIC-GM-Wuling(420,000)
(figures)refers to production capacity
Exports to:
Europe, Syria, Libya, Chile, Mongolia and Russia
Company Overview:
FAW Group is a global leader in the vehicle manufacturing industry with a 50-year history.
Founded in 1953, FAW employs 133,000 people around the world and sells products in over
70 countries. FAW is a diversified maker of quality light, medium, and heavy-duty trucks,
automobiles, municipal buses and luxury tourist coaches, custom bus chassis, and minivehicles
with total sales in excess of 7 million vehicles worldwide. They cooperate with other
world leaders including Audi AG, Ford Motor Company, Hyundai Motor Company, Mazda
Motor Corporation, Toyota Motor Corporation, and Volkswagen AG.
Products:
FAW now produces hundreds of models of light, medium, and heavy trucks.
It holds its own brands: JieFang, HongQi, BenTeng, XiaLi, Weizhi, etc and also has joint
venture brands with VW, Audi, Toyota, Mazda, etc.
FAW's current production strategies put a heavier emphasis on the commercial truck
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Automotive Industry in China
industry.
Manufacturer bases:
FAW's production bases are located in northeast China's Jilin and Heilongjiang provinces,
east China's Shandong province and Tianjin municipality, south China's Hainan province, and
southwest China's Sichuan and Yunnan provinces.
FAW's state-of-the-art government-certified engineering development and test center, China's
largest and most extensive automotive R&D facility, is the country's leader in automobile and
commercial vehicle research. The company's total assets are valued at 109.85 billion Yuan
(US $14.27 billion).
Exports to:
About 21 countries including U.S., Uzbekistan, Kazakhstan, Mongolia,etc.
Company Overview:
Founded in 1969, Dongfeng Motor Corporation (hereafter referred to as DFM), previously
named Second Automobile Works Co., is one of the 3 giant auto makers in China. Its main
businesses include passenger vehicles, commercial vehicles, engine, auto parts & components,
and equipment.
Products:
In 2007, Dongfeng reached the biggest market share in medium/heavy duty commercial
vehicle and medium duty bus of Chinese market.
Manufacturer bases:
The major business facilities are located in Shiyan, Xiangfan, Wuhan and Guangzhou. In
addition, several branches are placed in Shanghai, Liuzhou (Guangxi), Yancheng (Guangxi),
Nanchong (Sichuan), Zhengzhou (Henan), Urumuchi (Xinjiang), Chaoyang (liangning),
Hangzhou (Zhejiang), Kunming (Yunnan), etc.
As of 2007, DFM has gained an annual output of 1,137,000 vehicles, a sales income of
¥164,800,000,000, 12.94% market shares and 121,000 employees. The company ranks 20th
in TOP 500 of domestic enterprises and 5th in TOP 500 of domestic manufacturers
respectively.
Exports to:
More than 40 countries and regions over the world, and has established several markets such
as Iran, Vietnam, Russia, Algeria. Recently, Dongfeng Motor is arranging the after-sale
services in Russia, Egypt and Saudi Arabia.
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Automotive Industry in China
Company Overview:
Chery Automobile co., Ltd. is a Chinese automobile manufacturer founded in 1997 and
located in Wuhu (Anhui province). Chery has 18,000 employees. The first car of Chery
Company reached the market in December of 1999.
Until 2003 Chery belonged to SAIC (Shanghai automotive industry company). Now is
separated from SAIC and is controlled by several national investment firms and government.
Chery has now one R&D center, two gear box factory and one engine factory in China. Chery
now is working in building a world famous brand.
Products:
Chery has 4 sub-brands: Chery, Riich, Rely and Keryy. Under these sub-brands there are 11
series: QQ3, QQ6, A1, Riich2, Qiyun, Karry3, A5, Tiggo3 Eastar, Cross, A3,etc.
Manufacturer bases:
Chery now has a whole-car manufacture ability of 650,000 units annual and has its own R&D
center.
Exports to:
Chery exports have been ranged top 1 for 5 years among car manufacturers established in
China. More than 70 countries and regions, including American, Russian, South Africa, Iran,
Egypt, Indonesia, Chile, Philippine, Brazil, Uruguay
Company Overview:
The Zhejiang Geely holding group was founded in1986. It is among the top10 car
manufacturers in China. Geely entered the passenger car market in 1997. With continues
independent innovation, it progressed fast and has been ranked among the Chinese 500
Enterprise for 6 years. They received the honors as “the national innovation enterprise” and
the first state-level “the whole automobile Export-oriented enterprises”.
Products:
Geely has 4 sub-brands: Geely, Emgrand, Gleagle and Shanghai Englon. Geely has eight
series and more than 30 varieties of whole car products: Geely ZiYouJian、Geely Jingang、
Geely Vision、Shanghai Maple、Geely Meirenbao,etc. The products above are completely
through the national 3C authentication, and achieve the Europe III emission standard. Some of
the cars achieve the European IV standard, but cannot pas yet the Euro 5. Geely holds its
complete intellectual property rights.
Manufacturer bases:
The headquarter of the Geely holding group is in Hangzhou. It has six manufacturer bases
located in Linhai, Ningbo, Luqiao, Shanghai, Lanzhou and Xiangta, which enabled the group
to produce 300,000 vehicles every year.
Exports to:Russia, Ukraine and Middle East
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Automotive Industry in China
Company Overview:
BYD officially entered the auto business by purchasing the Tsinchuan Automobile Company
Limited (now BYD Auto Company Limited). BYD Auto is a Chinese automobile
manufacturer established in 2003 in Shenzhen, Guangdong Province. BYD is the China leader
of both electric cars and rechargeable battery.
Products:
BYD’s auto products involves high-end, medium-end, and low-end cars and auto parts. Now,
BYD auto has grown up to be one of the most innovative brands in China. Its main car models
include F3,F3-R,F6,F8,DM EV, etc
Manufacturer bases:
BYD has production lines in Shenzhen, Shanghai, Xi’an and Beijing.
Exports to:
Portugal, Angola, Cape Verde, Kazakhstan, Russia, South America, Middle East.
Company Overview:
Great Wall Motor Company Limited is the first privately-owned auto company of China listed
in the Hong Kong Stock Market. Great Wall Company owns more than 20 subsidiaries with
over 18,000 employees.
In the domestic market, Great Wall Pickup has kept ranking No.1 in terms of sales volume
and market share for 9 consecutive years; and the Great Wall SUV has been the sales
champion for 4 consecutive years. Great Wall won the grand award of "The 2006 CCTV
Chinese Annual Best Independent Brand SUV". Although we have no data to verify it, it is
said that Great Wall Motor has had the largest sales volume and export turnover among all
Chinese auto brands from 2004 till 2006.
Products:
Its products cover Passenger Car, SUV, MPV and Pickup. At present, it has the production
capability of 400,000 units of whole vehicles, and the independent matching ability of the
core parts, such as engines, front and rear axles, etc.
Manufacturer base and R&D center:
Great Wall Motor possesses only one production plant in Heibei Baoding. They also have one
R&D center with first class international R&D equipments and systems, being acclaimed as
"Postdoctoral Scientific Research Station", and owns a national certificated test center in
there.
It also owns testing center, Styling Department, Simulation Center, Dies Tooling Center.
Exports to:
South America Chile, Peru, Venezuela;Africa: Persian Gulf States such as Bahrain and
Saudi Arabia.
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Automotive Industry in China
Company Overview:
Volkswagen has been active in China since 1984. Today, the group has 14 representative
companies in the country. Volkswagen was one of the first international automakers to
venture into China.
The VOLKSWAGEN Group has two joint ventures for the manufacture of automobiles in
China. The total investment of Volkswagen in China is more than six billion Euros from 1984
to 2005.
Products:
Santana, Santana 3000, Passat, Lingyu, Touran, Polo Jinqing, Polo Jinqu, CrossPolo,
Magotan, Sagitar, Golf, New BORA, BORA Classic, Jetta
Company Overview:
General Motors Corp., the world's largest automaker, has been the annual global industry
sales leader for 77 years. Founded in 1908, with global headquarters in Detroit, GM
manufactures its cars and trucks in 35 countries.
Established on June 12, 1997, Shanghai General Motors Co., Ltd. (Shanghai GM) is a 50-50
joint venture partnership between General Motors and Shanghai Automotive Industry Corp.
Group (SAIC), the China's largest passenger car manufacturers. Shanghai GM has adopted
GM's Global Manufacturing System (GMS), applying the five key principles of people
involvement, standardization, built-in quality, short lead times and continuous improvement
throughout the entire manufacturing process.
Products:
SGM
Its sells vehicles under four major brands: Buick, Chevrolet, Cadillac and Saab. Its portfolio
includes the Buick Royaum premium sedan, Buick LaCrosse premium sedan, Buick Regal
upper-medium sedan, Buick Excelle lower-medium family, Buick GL8 executive wagon
family, Chevrolet Epica intermediate sedan, Chevrolet Lova small car, Chevrolet Aveo
hatchback, Chevrolet Sail small car family, Cadillac XLR luxury roadster, Cadillac SRX
medium luxury utility vehicle, Cadillac CTS luxury sedan, Cadillac SLS luxury business
sedan, Cadillac Escalade luxury utility, Saab 9-5 premium sedan, Saab 9-3 convertible and
Saab 9-3 sport sedan.
Manufacturer bases:
Shanghai GM operates vehicle manufacturing facilities in three Chinese cities. It has two
plants in Shanghai and one in Shenyang. Shanghai GM also has two powertrain facilities:
Jinqiao Powertrain in Shanghai and Shanghai GM Dong Yue Automotive Powertrain Co.,
Ltd. in Yantai. Shanghai GM has an annual manufacturing capacity of 480,000 vehicles,
which makes it one of the largest vehicle producers in China.
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Automotive Industry in China
Company Overview:
Ford is one of the leaders of the global automotive industry, its headquarter located in
Michigan, the products sells cover 6 continents with more than 200 countries and
regions .Ford has 245,000 employees, nearly 100 automotive assembly platform all over the
world. Ford holds brands: Ford、Lincoln、Mercury、Volvo Car and Mazda, etc. In addition,
Ford also developed Ford Credit business.
Ford signed the joint venture agreement with Chang’an Group in 2001 and the production
began in 2003.
Mazda entered in the Joint Venture in 2006, and the company was renamed as :”Chang’an
Ford Mazda Automobile Co. ,Ltd”. The equity is the following: Chang’an 50%,Ford
35%,Mazda15%.
Chang An Ford Mazda company is developing rapidly since 2006.
In March of 2007, the launch of S-MAX opened a whole new subdivide model SAV.
Products:
07 Ford Mondeo, Ford Focus, Ford S-MAX, Ford Mondeo Zhisheng, Mazda 3 and Volvo
S40.
Manufacture Base:
The Chongqing manufacturing base of Chang’an Ford Mazda has an accumulate production
of 250,000 vehicles. Its second manufacturing base is located in Nanjing and began
production in 2007. It has an output of 160,000 vehicles.
Export to:
Algeria
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Automotive Industry in China
Annex V. Export and import data of Passenger Cars
Data origin: The primary data original from China Main customs administration,
reorganized by DRC.
Note: Russia is included in Europe.
WORLDWIDE
EXPORTS
2008 2007 2006 2005 2004 2003
Europe * 484,180 595,085 485,027 337,045 109,886 32,957
North America 291,377 650,375 621,758 474,413 165,527 43,176
South America 127,978 135,332 77,541 24,454 10,374 3,216
Asia * 103,284 110,651 102,207 47,522 19,976 7,733
Africa 63,581 72,064 78,535 44,845 19,169 3,448
Oceania 36,076 53,843 67,983 35,573 18,998 5,742
Worldwide 1,106,476 1,617,350 1,433,051 963,852 343,930 96,272
* Asia and Europe data do not correspond to the ones in the database but they have
been updated to include Turkey in Europe
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EUROPE EXPORTS 2008 2007 2006 2005 2004 2003
Holland 76,410 24,731 29,432 20,314 4,802 2,249
Russia 70,128 74,455 32,508 4,173 389 31
Germany 66,842 107,119 66,192 30,954 11,858 2,369
Ukraine 58,577 43,793 6,721 3,578 185 22
UK 33,261 48,145 34,924 68,988 40,704 12,301
Italy + San Marino 30,154 43,548 72,622 18,283 2,913 1,453
Poland 27,943 20,404 4,936 2,655 658 26
France 15,253 43,258 60,541 37,132 9,839 3,318
Belgium 12,997 38,040 47,000 36,750 3,915 1,417
Spain 12,017 38,191 34,694 50,005 8,629 1,833
Sweden 9,914 21,363 23,200 17,656 7,523 2,345
Denmark 8,644 14,056 13,092 12,271 5,184 2,169
Finland 7,802 16,727 13,615 7,234 2,566 750
Turkey 7,730 1,703 4,055 1,693 1,091 50
Greece 6,096 5,991 3,264 1,493 1,013 72
Portugal 5,275 7,400 5,515 2,541 579 181
Romania 5,038 10,003 2,458 692 162 28
Czechsolvakia 3,740 3,716 2,704 1,370 421 132
Ireland 3,636 6,219 3,680 4,382 3,291 1,057
Norway 2,932 3,891 7,408 6,833 1,651 469
Austria 2,670 3,126 2,437 1,610 608 165
Hungary 2,467 3,993 4,519 2,420 772 290
Lithuania 2,117 1,985 673 73 51 19
Bulgaria 1,794 1,359 377 105 133 20
Switserland 1,613 3,072 2,144 851 50 133
Belarus 1,373 624 77 7
Slovenia 1,215 1,363 1,244 632 56 23
Estonia 1,180 1,200 982 355 121 5
Croatia 1,168 1,140 562 635 21 4
Latvia 1,068 2,278 1,004 144 67
Azerbaijan 734 429 325 93 14
Moldova 703 192 54 32 20
Georgia 477 394 388 60 5
Iceland 343 294 269 586 99 6
Bosnia-Herzegovina 297 80 23 116 24
Slovakia 210 143 155 189 169
Malta 101 192 436 39 13
Armenia 95 199 142 13
Serbia 80
Macedonia 30 63 140
Albania 27 74 158 31
Montenegro 26
Luxembourg 3 107 133 20 272
Yugoslavia 25 224 50 23 2
Total Europe * 484,180 595,085 485,027 337,045 109,886 32,957
* Europe data include Turkey
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AFRICA EXPORTS 2008 2007 2006 2005 2004 2003
Egypt 18,661 9,025 6,368 3,569 1,150 14
Algeria 14,829 9,879 6,042 4,144 3,254 446
Morocco 2,637 2,368 1,139 551 102 2
Libya 240 710 4,337 592 277 593
Tunisia 142 301 247 336 20
Total North Africa 36,509 22,283 18,133 9,192 4,783 1,075
Total Africa 63,581 72,064 78,535 44,845 19,169 615
SOUTH AMERICA
EXPORTS
2008 2007 2006 2005 2004 2003
Argentina 33,124 39,198 21,997 5,199 589 153
Chile 19,102 9,915 10,276 1,776 790 474
Mexico 13,924 17,541 13,912 7,433 4,898 1,837
Venezuela 12,424 28,874 10,045 911 79 11
Colombia 8,813 12,106 7,178 1,843 164 26
Brazil 7,338 4,454 947 400 95 13
Uruguay 5,992 2,406 1,251 460 116 12
Peru 5,945 2,058 569 103 15 100
Panama 4,942 3,814 1,932 758 405 31
Ecuador 4,895 5,836 3,010 1,197 786 278
Paraguay 2,544 2,487 463 107 120 17
Costa Rica 1,738 1,492 976 1,075 212 35
Cuba 1,696 314 1,137 255 13
Guatemala 1,108 1,476 1,375 1,248 1,305 161
Honduras 893 392 488 82 76 6
Puerto Rico 891 359 396 365 232 10
Salvador 862 752 109 26 6
Total South America 127,978 135,332 77,541 24,454 10,374 3,216
ASIA EXPORTS 2008 2007 2006 2005 2004 2003
United Arab
Emirates
21,316 26,154 20,986 5,404 2,111 961
Japan 15,488 19,722 24,987 5,932 707 266
Syria 11,298 10,585 10,279 8,982 5,196 1,790
Turkey 7,730 1,703 4,055 1,693 1,091 50
Iran 6,552 1,622 452 352 167 18
Tajikistan 6,218 5,976 1,882 110 61 10
Saudi Arabia 5,900 9,469 6,691 7,388 2,269 549
South Korea 4,426 10,798 4,620 1,275 968 530
Lebanon 3,987 1,955 909 2,906 480 76
Philippines 3,154 1,772 967 1,112 284 116
Thailand 2,276 2,368 1,701 1,655 1,046 108
Kuwait 2,217 1,858 1,919 3,725 2,915 1,155
Bangladesh 2,129 194 186 37 119 233
Singapore 1,978 2,994 1,049 591 201 14
Indonesia 1,884 1,558 1,657 160 398 2
Malaysia 1,773 1,011 12,410 1,003 68 11
Total Asia*
* Turkey is excluded
103,284 110,651 102,207 47,522 19,976 7,733
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Automotive Industry in China
WORLDWIDE
IMPORTS
2008 2007 2006 2005 2004 2003
Asia * 212,570 149,019 98,291 83,507 98,953 89,023
Europe * 132,100 112,129 94,755 51,876 56,429 58,320
North America 48,862 38,686 26,376 16,018 7,584 7,147
South America 4,841 5,015 2,656 136 495 862
Oceania 2 3 11 5,999 114 9
Africa 1 220
worldwide 530,154 415,939 316,717 209,412 219,189 212,795
* Asia and Europe data do not correspond to the ones in the database but they have
been updated to include Turkey in Europe
EUROPE
IMPORTS
2008 2007 2006 2005 2004 2003
Germany 76,798 70,968 65,622 33,733 41,824 44,008
UK 20,073 11,014 6,182 3,453 2,464 1,637
Slovakia 12,697 10,376 3,721 1,388 550 1,018
Sweden 6,153 6,598 5,292 5,301 3,772 4,136
Austria 5,493 4,002 4,897 1,211 2,441 816
Belgium 2,669 2,658 2,632 2,329 156 60
France 2,306 3,089 5,065 3,030 1,402 2,758
Hungary 1,686 961 3 8 33 51
Italy 1,347 452 268 225 83 177
Spain 1,159 464 416 790 180 99
Finland 674 396 186 57 3
Portugal 392 1 1 294 143
Turkey 321 1,043 127 815 1,106
Poland 240 1 46 1,548
Czechoslovakia
77 33 323 321 2,307 500
Holland 10 70 16 23 3 10
Russia 2 4 53 4
Ireland 1
Norway 1 1
Ukraine 1
Romania 1 1 249
Switzerland 1 2 2
Slovenia 3 2
Total Europe 132,100 112,129 94,755 51,876 56,429 58,320
AFRICA
IMPORTS
Algeria
2008 2007 2006 2005 2004 2003
Egypt
Libya
Morocco
Tunisia
220
Total Africa 0 1 0 0 0 220
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Automotive Industry in China
ASIA IMPORTS 2008 2007 2006 2005 2004 2003
Japan 158,674 106,717 62,861 54,032 64,718 67,405
South Korea 50,887 42,130 35,183 29,271 33,779 16,853
Malaysia 2,907 2 2
Turkey
People's
321 1,043 127 815 1,106
Republic of
China
81 106 67 5 2 13
Total Asia * 212,570 149,019 98,291 83,507 98,953 89,023
* Turkey is excluded
SOUTH
AMERICA
IMPORTS
2008 2007 2006 2005 2004 2003
Mexico 4,841 5,015 2,646 131 486 824
Argentina 2 4 4 1
Brazil 1 1 5 37
Colombia 7
Total South
America
4,841 5,015 2,656 136 495 862
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Automotive Industry in China
Annex VI. Volume of imported passenger cars by origin, brand and
model
China:Registration volume of imported passenger cars by origin,brand, and model(2005-2007,YTD Sep.2007/2008)
Percentage
Growth
Origin Maker/Brand Model 2005 2006 2007 YTD Sep.2007 YTD Sep.2008 2005 2006 2007 2006 2007
Europe Alfa Romeo Romeo 6 4 7 7 1 0% 0% 0% -33% 75%
Alfa Romeo Total 6 4 7 7 1 0% 0% 0% -33% 75%
Aston Martin V8 Vantage 0 2 0% 0% 0% 0% 0%
DB9 1 1 0 2 0% 0% 0% -100% 0%
AstonMartin Total 1 1 0 4 0% 0% 0% -100% 0%
Audi Q7 644 5,856 4,036 5798 0% 1% 7% 0% 809%
A8 1,877 2,493 3,219 2,324 3,292 5% 5% 4% 33% 29%
TT 64 22 373 120 1160 0% 0% 0% -66% 1595%
A5 0 195 0% 0% 0% 0% 0%
S8 44 24 71 0% 0% 0% 0% 0%
R8 0 17 0% 0% 0% 0% 0%
Audi 7 128 109 14 0% 0% 0% -100% 0%
A6 133 32 21 13 8 0% 0% 0% -76% -34%
A4 92 22 5 4 1 0% 0% 0% -76% -77%
Audi Total 2,173 3,213 9,646 6,630 10,556 5% 6% 11% 48% 200%
Bentley ContinentalFlyingSpur 64 154 101 210 0% 0% 0% 0% 141%
Continental GT 29 20 38 24 52 0% 0% 0% -31% 90%
Arnage 29 26 23 18 34 0% 0% 0% -10% -12%
Bentley Total 58 110 215 143 296 0% 0% 0% 90% 95%
BMW X5 2,302 2,388 4,716 3,001 6,180 6% 5% 5% 4% 97%
730Li 3,240 3,805 6,730 5,094 4,666 8% 8% 8% 17% 77%
740Li 1,645 2,263 1,676 2,109 0% 3% 3% 0% 38%
X3 501 452 1,789 1,279 1,734 1% 1% 2% -10% 296%
330i 270 565 319 1,288 0% 1% 1% 0% 109%
750Li 573 1,097 1,001 759 922 1% 2% 1% 91% -9%
320i 4 1,024 1,543 1,256 581 0% 2% 2% 25500% 51%
325i 115 50 404 0% 0% 0% 0% 0%
120i 0 297 0% 0% 0% 0% 0%
760Li 263 333 302 234 281 1% 1% 0% 27% -9%
Z4 167 104 350 236 261 0% 0% 0% -38% 237%
130i 0 36 0% 0% 0% 0% 0%
M6 20 72 59 29 0% 0% 0% 0% 260%
M5 3 23 36 28 23 0% 0% 0% 667% 57%
650i 27 30 26 20 0% 0% 0% 0% 11%
BMW 75 19 5 4 10 0% 0% 0% -75% -74%
630i 15 52 125 109 8 0% 0% 0% 247% 140%
745Li 1,018 40 18 13 6 3% 0% 0% -96% -55%
530i 37 14 3 3 6 0% 0% 0% -62% -79%
550i 19 10 9 1 0% 0% 0% 0% -47%
645Ci 58 16 3 3 1 0% 0% 0% -72% -81%
325Ci 7 6 3 3 0% 0% 0% -14% -50%
750IL 1 0 0% 0% 0% -100% 0%
7 Series 7 1 0 0% 0% 0% -86% -100%
M3 2 5 0 0% 0% 0% 150% -100%
525i 4 2 2 0% 0% 0% 0% -50%
520i 13 11 2 2 0% 0% 0% -15% -82%
545i 74 10 2 0 0% 0% 0% -86% -80%
318Ci 16 6 2 2 0% 0% 0% -63% -67%
3 Series 4 1 0 0% 0% 0% -75% -100%
735Li 133 10 3 3 0% 0% 0% -92% -70%
Z3 2 1 0 0% 0% 0% -50% -100%
740i 688 0 2% 0% 0% -100% 0%
330Ci 34 7 1 0 0% 0% 0% -79% -86%
735i 1 0 0% 0% 0% -100% 0%
BMW Total 9,238 11,410 19,691 14,170 18,863 23% 23% 23% 24% 73%
Citroen C5 345 179 227 188 131 1% 0% 0% -48% 27%
C4 5 237 190 122 0% 0% 0% 0% 4640%
C6 1 53 43 30 0% 0% 0% 0% 5200%
Xsara 2 1 0 1 0% 0% 0% -100% 0%
Citoen 1 0 0% 0% 0% -100% 0%
Picasso 2 0 0% 0% 0% -100% 0%
Citroen Total 350 185 518 421 284 1% 0% 1% -47% 180%
Dacia Supernova 37 0 0% 0% 0% -100% 0%
Dacia Total 37 0 0% 0% 0% -100% 0%
Ferrari F430 10 62 126 83 102 0% 0% 0% 520% 103%
599 Gtb Fiorano 21 18 17 0% 0% 0% 0% 0%
612 Scaglietti 4 5 8 3 7 0% 0% 0% 25% 60%
430 Scuderia 0 3 0% 0% 0% 0% 0%
360 Modena 8 7 5 4 2 0% 0% 0% -13% -29%
Ferrari 1 1 1 0% 0% 0% -100% 0%
Ferrari Total 23 74 161 109 131 0% 0% 0% 222% 118%
Fiat Fiat 1 1 0% 0% 0% 0% 0%
Scudo 2 0 0% 0% 0% 0% -100%
Palio 1 4 0 0% 0% 0% 300% -100%
Fiat Total 1 6 1 1 0% 0% 0% 500% -83%
Jaguar XF 0 354 0% 0% 0% 0% 0%
XJ8 128 98 331 218 301 0% 0% 0% -23% 238%
S-Type 361 443 457 374 118 1% 1% 1% 23% 3%
XJ8L 13 5 27 0% 0% 0% 0% 0%
XJ6L 91 386 125 119 15 0% 1% 0% 324% -68%
XK 3 22 17 8 0% 0% 0% 0% 633%
Jaguar 2 0 2 0% 0% 0% 0% -100%
S-Type Sport 1 1 0 0% 0% 0% 0% -100%
X-Type 14 8 4 4 0% 0% 0% -43% -50%
Super 1 0 0% 0% 0% 0% -100%
Jaguar Total 595 942 952 737 825 1% 2% 1% 58% 1%
Lamborghini Spyder 4 2 5 3 17 0% 0% 0% -50% 150%
Murcielago 9 3 9 0% 0% 0% 0% 0%
LAMBORGHINI 2 1 0 0% 0% 0% -50% -100%
Lamborghini Total 6 3 14 6 26 0% 0% 0% -50% 367%
Lancia Thesis 1 0 1 0% 0% 0% 0% -100%
Lancia Total 1 0 1 0% 0% 0% 0% -100%
Land Rover Freelander-2 1,728 1,057 3,892 0% 0% 2% 0% 0%
Discovery-3 372 1,356 1,963 1,344 2,489 1% 3% 2% 265% 45%
Range Rover 324 618 1,188 817 1,845 1% 1% 1% 91% 92%
Range Rover Sport 85 296 602 393 699 0% 1% 1% 248% 103%
Defender 3 2 2 1 3 0% 0% 0% -33% 0%
Port of Barcelona Chair of Logistics 66

Automotive Industry in China
Discovery-2 45 7 6 3 2 0% 0% 0% -84% -14%
Freelander 660 379 12 11 2 2% 1% 0% -43% -97%
Land Rover Total 1,489 2,658 5,501 3,626 8,932 4% 5% 6% 79% 107%
Lotus RCR 0 253 0% 0% 0% 0% 0%
Lotus 2 6 0 2 0% 0% 0% 200% -100%
Lotus Total 2 6 0 255 0% 0% 0% 200% -100%
Maserati Quattroporte 38 38 125 82 153 0% 0% 0% 0% 229%
Maserati 0 89 0% 0% 0% 0% 0%
Quattroporte Sport 28 51 45 5 0% 0% 0% 0% 82%
M138 Spyder 2 1 6 6 1 0% 0% 0% -50% 500%
M128 GT 1 0 0% 0% 0% 0% -100%
GranSport 1 4 6 6 0% 0% 0% 300% 50%
Maserati Total 41 72 188 139 248 0% 0% 0% 76% 161%
Maybach Maybach 62 6 19 19 14 9 0% 0% 0% 217% 0%
Maybach 62S 3 1 6 0% 0% 0% 0% 0%
Maybach 57 1 1 0 1 0% 0% 0% 0% -100%
Maybach Total 7 20 22 15 16 0% 0% 0% 186% 10%
Mercedes-Benz S350 3,621 4,451 5,208 4,097 5,711 9% 9% 6% 23% 17%
ML350 686 1,775 3,005 2,206 2,762 2% 4% 3% 159% 69%
S300 14 2,658 2,029 2,743 0% 0% 3% 0% 18886%
R350 87 1,147 777 1,592 0% 0% 1% 0% 1218%
GL450 26 1,109 725 1,288 0% 0% 1% 0% 4165%
S600 470 497 1,230 823 1,264 1% 1% 1% 6% 147%
C200K 602 8 1,127 0% 0% 1% 0% 0%
S500 639 993 1,072 835 1,123 2% 2% 1% 55% 8%
CLK280 71 316 423 289 494 0% 1% 0% 345% 34%
CLS350 331 375 548 382 462 1% 1% 1% 13% 46%
CLK200 25 74 247 154 390 0% 0% 0% 196% 234%
SLK200 365 305 398 307 377 1% 1% 0% -16% 30%
R500 15 286 209 341 0% 0% 0% 0% 1807%
R300 0 277 0% 0% 0% 0% 0%
Viano 0 267 0% 0% 0% 0% 0%
SLK280 6 84 228 154 248 0% 0% 0% 1300% 171%
GL550 0 190 0% 0% 0% 0% 0%
G55 11 6 95 64 185 0% 0% 0% -45% 1483%
ML63 89 62 124 0% 0% 0% 0% 0%
Mercedes-Benz 0 113 0% 0% 0% 0% 0%
C230 27 314 536 517 107 0% 1% 1% 1063% 71%
S65 2 45 26 102 0% 0% 0% 0% 2150%
SL350 52 73 118 100 92 0% 0% 0% 40% 62%
SLK350 142 121 121 88 83 0% 0% 0% -15% 0%
CLK240 229 83 78 64 74 1% 0% 0% -64% -6%
CLS500 81 101 125 83 71 0% 0% 0% 25% 24%
ML500 29 323 367 270 58 0% 1% 0% 1014% 14%
E63 1 32 18 39 0% 0% 0% 0% 3100%
CLK350 11 39 58 37 35 0% 0% 0% 255% 49%
C200K 203 807 1090 1,039 18 1% 2% 1% 298% 35%
SL500 27 35 36 30 18 0% 0% 0% 30% 3%
E200 194 18 14 9 18 0% 0% 0% -91% -22%
G500 16 18 36 28 16 0% 0% 0% 13% 100%
Sprinter313 0 9 0% 0% 0% 0% 0%
A170 12 4 11 8 5 0% 0% 0% -67% 175%
E240 1,960 296 52 45 5 5% 1% 0% -85% -82%
Vito 0 2 0% 0% 0% 0% 0%
S320 19 4 2 1 1 0% 0% 0% -79% -50%
SL55 12 5 2 1 1 0% 0% 0% -58% -60%
S430 2 1 3 2 1 0% 0% 0% -50% 200%
CL600 1 1 0 1 0% 0% 0% 0% -100%
MB100 0 1 0% 0% 0% 0% 0%
S280 945 53 4 3 1 2% 0% 0% -94% -92%
C280 1 0 1 0% 0% 0% -100% 0%
C220 22 4 4 4 1 0% 0% 0% -82% 0%
SL65 1 1 1 0% 0% 0% 0% 0%
C180 2 0 0% 0% 0% -100% 0%
CLK55 1 3 0 0% 0% 0% 200% -100%
E320 40 5 9 9 0% 0% 0% -88% 80%
300E 2 0 0% 0% 0% -100% 0%
260E 1 3 0 0% 0% 0% 200% -100%
SLK230 3 0 0% 0% 0% -100% 0%
C55 1 0 0% 0% 0% -100% 0%
CLK320 1 0 0% 0% 0% -100% 0%
S420 1 0 0% 0% 0% -100% 0%
SL430 7 5 2 2 0% 0% 0% -29% -60%
E350 32 129 6 5 0% 0% 0% 303% -95%
ML430 2 0 0% 0% 0% -100% 0%
Mercedes-Benz 36 15 27 13 0% 0% 0% -58% 80%
E500 5 1 10 10 0% 0% 0% -80% 900%
S55 15 1 1 0% 0% 0% -100% 0%
E55 15 13 1 1 0% 0% 0% -13% -92%
A160 9 2 1 1 0% 0% 0% -78% -50%
CLS 4 3 1 1 0% 0% 0% -25% -67%
E430 2 0 0% 0% 0% -100% 0%
C240 21 21 2 2 0% 0% 0% 0% -90%
SL320 1 0 0% 0% 0% -100% 0%
ML320 5 2 0 0% 0% 0% -60% -100%
Mercedes-Benz Total 10,416 11,524 21,140 15,540 21,775 26% 23% 25% 11% 83%
MG MG 0 160 0% 0% 0% 0% 0%
MG Total 0 160 0% 0% 0% 0% 0%
MINI MINI 441 875 2,184 1,511 1,909 1% 2% 3% 98% 150%
Clubman 0 145 0% 0% 0% 0% 0%
MINI Total 441 875 2,184 1,511 2,054 1% 2% 3% 98% 150%
Ople Astra 744 1,829 1,971 1,536 923 2% 4% 2% 146% 8%
Zafira 307 136 692 535 404 1% 0% 1% -56% 409%
Vectra 1,374 1,211 726 609 254 3% 2% 1% -12% -40%
Astra GTC 1 0 30 0% 0% 0% 0% -100%
Omega 23 2 3 3 0% 0% 0% -91% 50%
Agila 47 7 3 3 0% 0% 0% -85% -57%
Opel Total 2,495 3,186 3,395 2,686 1,611 6% 6% 4% 28% 7%
Peugeot 307SW 80 23 37 5 162 0% 0% 0% -71% 61%
307CC 169 149 201 153 106 0% 0% 0% -12% 35%
Port of Barcelona Chair of Logistics 67

Automotive Industry in China
206CC 215 229 311 245 95 1% 0% 0% 7% 36%
Peugeot 293 360 197 153 81 1% 1% 0% 23% -45%
407SW 2 17 60 44 32 0% 0% 0% 750% 253%
COUPE 407 5 57 35 29 0% 0% 0% 0% 1040%
407 0 16 0% 0% 0% 0% 0%
607 0 11 0% 0% 0% 0% 0%
206 5 0 0% 0% 0% 0% -100%
307 20 4 1 1 0% 0% 0% -80% -75%
Peugeot Total 779 792 864 636 532 2% 2% 1% 2% 9%
Porsche Cayenne 906 1,338 2,694 1,797 3,630 2% 3% 3% 48% 101%
Cayenne S 780 1,186 768 1,392 0% 2% 1% 0% 52%
Cayenne Turbo 315 364 249 630 0% 1% 0% 0% 16%
Cayenne GTS 0 274 0% 0% 0% 0% 0%
Brigand 97 115 149 123 224 0% 0% 0% 19% 30%
Cayman 18 107 84 163 0% 0% 0% 0% 494%
911 Carrera S 1 54 96 79 99 0% 0% 0% 5300% 78%
911 Turbo 1 11 54 33 58 0% 0% 0% 1000% 391%
911 Carrera 4 71 26 50 40 55 0% 0% 0% -63% 92%
Cayman S 54 48 38 53 0% 0% 0% 0% -11%
911 Carrera 19 47 35 25 37 0% 0% 0% 147% -26%
911 Carrera 4S 2 33 28 33 0% 0% 0% 0% 1550%
911 Targa 2 33 21 30 0% 0% 0% -100% 0%
911 Gt3 1 5 2 6 0% 0% 0% 0% 400%
Porsche Total 1,097 2,761 4,854 3,287 6,684 3% 5% 6% 152% 76%
Renault Megane 615 1,961 1,398 1,202 374 2% 4% 2% 219% -29%
Scenic 753 851 635 515 245 2% 2% 1% 13% -25%
MeganeCC 9 59 227 188 78 0% 0% 0% 556% 285%
Laguna 93 129 196 149 53 0% 0% 0% 39% 52%
Vel Satis 25 23 7 7 0% 0% 0% -8% -70%
Scenic RX4 92 19 2 2 0% 0% 0% -79% -89%
Renault Total 1,587 3,042 2,465 2,063 750 4% 6% 3% 92% -19%
Rolls-Royce Phantom 22 34 72 50 60 0% 0% 0% 55% 112%
Rolls-Royce 3 0 1 0% 0% 0% -100% 0%
Rolls-Royce Total 25 34 72 50 61 0% 0% 0% 36% 112%
Rover Rover 6 12 27 24 12 0% 0% 0% 100% 125%
Rover 75 100 32 78 65 6 0% 0% 0% -68% 144%
Rover total 106 44 105 89 18 0% 0% 0% -58% 139%
Saab Saab 213 279 501 327 347 1% 1% 1% 31% 80%
93 0 165 0% 0% 0% 0% 0%
95 0 28 0% 0% 0% 0% 0%
9-3 Sporthatch 1 29 25 21 0% 0% 0% 0% 2800%
Saab Total 213 280 530 352 561 1% 1% 1% 31% 89%
Skoda Octavia 715 209 83 70 37 2% 0% 0% -71% -60%
Superb 420 421 71 62 14 1% 1% 0% 0% -83%
Fabia 13 4 2 2 0% 0% 0% -69% -50%
Skoda Total 1,148 634 156 134 51 3% 1% 0% -45% -75%
SMART Fortwo 8 2 2 0% 0% 0% -100% 0%
City Coupe 1 0 0% 0% 0% -100% 0%
SMART Total 9 2 2 0% 0% 0% -100% 0%
Spyder C8 2 0 0% 0% 0% 0% -100%
Spyder Total 2 0 0% 0% 0% 0% -100%
Volvo S80 2,843 1,668 2,859 2,168 2,175 7% 3% 3% -41% 71%
XC90 1,076 1,536 2,070 1,619 1,580 3% 3% 2% 43% 35%
Volvo 151 130 566 324 1,049 0% 0% 1% -14% 335%
C30 0 347 0% 0% 0% 0% 0%
C70 1 5 241 168 269 0% 0% 0% 400% 4720%
S40 1,307 968 43 38 5 3% 2% 0% -26% -96%
XC70 1 0 0% 0% 0% -100% 0%
S60 21 2 1 1 0% 0% 0% -90% -50%
Volvo Total 5,400 4,309 5,780 4,318 5,425 13% 9% 7% -20% 34%
Volkswagen The Touareg 1,076 2,062 2,836 2,046 3,331 3% 4% 3% 92% 38%
Beetle 928 1,848 3,214 2,370 2,790 2% 4% 4% 99% 74%
Magotan 558 357 696 0% 0% 1% 0% 0%
Phaeton 156 380 546 447 660 0% 1% 1% 144% 44%
GTI 31 302 235 204 0% 0% 0% 0% 874%
EOS 0 21 0% 0% 0% 0% 0%
Sharan 192 43 4 3 4 0% 0% 0% -78% -91%
Golf 22 5 5 5 0% 0% 0% -77% 0%
Passat 27 8 4 3 0% 0% 0% -70% -50%
Volkswagen Total 2,401 4,377 7,469 5,466 7,706 6% 9% 9% 82% 71%
Adjusted European Total 40,144 50,564 85,933 62,138 87,826 100% 100% 100%
Source: Fourin (Research and Analysis of the Asian Automotive Industry)
Port of Barcelona Chair of Logistics 68

Automotive Industry in China
Annex VII. Volume of top 30 imported passenger cars models in top
5 provinces
China:Resgistration Volume of Top 30 Imported Passenger Models in Top Five Administrative Units(2005-2--7,YTD Sep.2007/2008)
(Component
2007 (component YTD Sep.2008 (Component
Ranking Origin Brand Segment/Model Year Volume Ratio) Ranking Top Five Administrative Volume Units Ratio) Ranking Top Five Administrative Volume Units Ratio)
2005 0.0% 1 Zhejiang 3421 24.8% 1 Zhejiang 3699 24.7%
2006 2961 2.4% 2 Guangdong 3124 22.6% 2 Guangdong 2723 18.2%
1 JP Lexus X ES350
2007 13800 6.5% 3 Jiangsu 1254 9.1% 3 Jiangsu 1358 9.1%
YTD Sep.2007 10067 6.5% 4 Shanghai 1006 7.3% 4 Beijing 1008 6.7%
YTD Sep.2008 15001 6.9% 5 Beijing 813 5.9% 5 Shanghai 1003 6.7%
2005 7747 6.9% 1 Zhejiang 1666 13.8% 1 Zhejiang 1542 14.7%
2006 10891 8.7% 2 Guangdong 1110 9.2% 2 Beijing 1043 9.9%
2 KR Hyundai S Santa Fe
2007 12083 5.7% 3 Liaoning 1001 8.3% 3 Liaoning 815 7.8%
YTD Sep.2007 9010 5.8% 4 Beijing 996 8.2% 4 Inner Mongolia 805 7.7%
YTD Sep.2008 10493 4.9% 5 Inner Mongolia 916 7.6% 5 Guangdong 616 5.9%
2005 8627 7.7% 1 Guangdong 2249 18.7% 1 Guangdong 1354 13.7%
3 JP Toyota S
2006
Land Cruiser
2007
Prado
YTD Sep.2007
8831
12054
8938
7.1%
5.7%
5.8%
2 Yunnan
3 Shaanxi
4 Inner Mongolia
1448
896
862
12.0%
7.4%
7.2%
2 Yunnan
3 Shaanxi
4 Inner Mongolia
1236
604
589
12.5%
6.1%
5.9%
YTD Sep.2008 9917 4.6% 5 Shanxi 622 5.2% 5 Shanxi 568 5.7%
2005 1028 0.9% 1 Guangdong 647 12.0% 1 Guangdong 916 11.7%
2006 2749 2.2% 2 Liaoning 526 9.8% 2 Beijing 656 8.4%
4 JP Subaru S Forester
2007 5373 2.5% 3 Shanxi 434 8.1% 3 Zhejiang 619 7.9%
YTD Sep.2007 3939 2.5% 4 Beijing 430 8.0% 4 Liaoning 589 7.5%
YTD Sep.2008 7813 3.6% 5 Zhejiang 319 5.9% 5 Shanxi 470 6.0%
2005 0.0% 1 Guangdong 1133 18.8% 1 Zhejiang 938 13.2%
5 JP Hyundai S
Outlander
EX
2006
2007
YTD Sep.2007
6025
4267
0.0%
2.9%
2.8%
2 Zhejiang
3 Beijing
4 Yunnan
826
593
285
13.7%
9.8%
4.7%
2 Guangdong
3 Beijing
4 Shandong
842
799
426
11.9%
11.3%
6.0%
YTD Sep.2008 7099 3.3% 5 Shandong 212 3.5% 5 Yunnan 398 5.6%
2005 2302 2.0% 1 Zhejiang 896 19.0% 1 Zhejiang 1180 19.1%
2006 2388 1.9% 2 Guangdong 826 17.5% 2 Guangdong 984 15.9%
6 EU BMW S X5
2007 4716 2.2% 3 Beijing 603 12.8% 3 Beijing 769 12.4%
YTD Sep.2007 3001 1.9% 4 Shanghai 390 8.3% 4 Shanghai 447 7.2%
YTD Sep.2008 6180 2.9% 5 Jiangsu 330 7.0% 5 Jiangsu 364 5.9%
2005 0.0% 1 Guangdong 711 25.7% 1 Guangdong 1400 23.3%
2006 0.0% 2 Zhejiang 287 10.4% 2 Zhejiang 624 10.4%
7 JP Toyota S Highlander
2007 2770 1.3% 3 Beijing 232 8.4% 3 Beijing 445 7.4%
YTD Sep.2007 1058 0.7% 4 Liaoning 170 6.1% 4 Liaoning 337 5.6%
YTD Sep.2008 6015 2.8% 5 Shandong 132 4.8% 5 Shandong 307 5.1%
2005 0.0% 1 Jiangsu 33 12.9% 1 Beijing 575 9.7%
2006 0.0% 2 Guangdong 25 9.8% 2 Shandong 491 8.3%
8 US Chevrolet S Captiva
2007 255 0.1% 3 Zhejiang 21 8.2% 3 Jiangsu 426 7.2%
YTD Sep.2007 12 0.0% 4 Beijing 20 7.8% 4 Guangdong 418 7.0%
YTD Sep.2008 5930 2.7% 5 Shandong 19 7.5% 5 Zhejiang 418 7.0%
2005 0.0% 1 Zhejiang 1082 18.5% 1 Zhejiang 876 15.1%
2006 644 0.5% 2 Beijing 565 9.6% 2 Beijing 634 10.9%
9 EU Audi S Q7
2007 5856 2.8% 3 Liaoning 563 9.6% 3 Guangdong 574 9.9%
YTD Sep.2007 4036 2.6% 4 Guangdong 546 9.3% 4 Liaoning 517 8.9%
YTD Sep.2008 5798 2.7% 5 Jiangsu 258 4.4% 5 Jiangsu 356 6.1%
2005 3621 3.2% 1 Guangdong 996 19.1% 1 Zhejiang 1110 19.4%
2006 4451 3.6% 2 Zhejiang 924 17.7% 2 Guangdong 829 14.5%
10 EU Mercedes-Benz X S350
2007 5208 2.5% 3 Beijing 502 9.6% 3 Beijing 637 11.2%
YTD Sep.2007 4097 2.6% 4 Jiangsu 344 6.6% 4 Jiangsu 422 7.4%
YTD Sep.2008 5711 2.6% 5 Shanghai 311 6.0% 5 Shanghai 394 6.9%
2005 0.0% 1 1 Guangdong 810 15.5%
2006 0.0% 2 2 Zhejiang 707 13.5%
11 JP Mazda C Mazda 3
2007 0.0% 3 3 Beijing 583 11.1%
YTD Sep.2007 0.0% 4 4 Jiangsu 470 9.0%
YTD Sep.2008 5236 2.4% 5 5 Shandong 265 5.1%
2005 3240 2.9% 1 Guangdong 1327 19.7% 1 Zhejiang 829 17.8%
2006 3805 3.0% 2 Zhejiang 1188 17.7% 2 Guangdong 644 13.8%
12 EU BMW X 730Li
2007 6730 3.2% 3 Beijing 554 8.2% 3 Beijing 471 10.1%
YTD Sep.2007 5094 3.3% 4 Jiangsu 470 7.0% 4 Jiangsu 374 8.0%
YTD Sep.2008 4666 2.2% 5 Shanghai 385 5.7% 5 Shanghai 315 6.8%
2005 0.0% 1 Guangdong 45 32.8% 1 Guangdong 1250 27.8%
2006 0.0% 2 Zhejiang 23 16.8% 2 Zhejiang 443 9.9%
13 JP Mazda M Mazda 5
2007 137 0.1% 3 Jiangsu 17 12.4% 3 Beijing 364 8.1%
YTD Sep.2007 7 0.0% 4 Shandong 17 12.4% 4 Jiangsu 319 7.1%
YTD Sep.2008 4489 2.1% 5 Beijing 0.0% 5 Shandong 280 6.2%
2005 1210 1.1% 1 Guangdong 1503 36.4% 1 Guangdong 959 22.3%
2006 2761 2.2% 2 Zhejiang 380 9.2% 2 Shandong 524 12.2%
14 KR Kia L Carens
2007 4124 2.0% 3 Shanghai 258 6.3% 3 Zhejiang 243 5.6%
YTD Sep.2007 2958 1.9% 4 Shandong 211 5.1% 4 Shanghai 207 4.8%
YTD Sep.2008 4310 2.0% 5 Beijing 158 3.8% 5 Beijing 184 4.3%
2005 0.0% 1 Beijing 328 19.0% 1 Beijing 717 18.4%
2006 0.0% 2 Guangdong 299 17.3% 2 Zhejiang 460 11.8%
15
EU Land Rover S Freelander-2
2007 1728 0.8% 3 Zhejiang 157 9.1% 3 Guangdong 338 8.7%
YTD Sep.2007 1057 0.7% 4 Liaoning 145 8.4% 4 Liaoning 313 8.0%
YTD Sep.2008 3892 1.8% 5 Shanghai 102 5.9% 5 Shanghai 125 3.2%
Port of Barcelona Chair of Logistics 69

Automotive Industry in China
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
JP
EU
JP
EU
EU
JP
EU
EU
EU
KR
EU
EU
EU
KR
EU
Toyota
Porsche
Toyota
Volkswagen
Audi
Lexus
Volkswagen
Mercedes-Benz
Mercedes-Benz
Hyundai
Land Rover
Volvo
BMW
Hyundai
MINI
Other
Total
M
S
S
S
X
X
L
S
X
S
S
X
X
L
X
Previa
Cayenne
RAV-4
Touareg
A8
IS300
Beetle
ML350
S300
Veracruz
Discovery-3
S80
740Li
Coupe
MINI
2005 2381 2.1% 1 Guangdong 1836 33.6% 1 Guangdong 892 23.2%
2006 2027 1.6% 2 Zhejiang 742 13.6% 2 Zhejiang 451 11.7%
2007 5457 2.6% 3 Jiangsu 483 8.9% 3 Jiangsu 404 10.5%
YTD Sep.2007 4144 2.7% 4 Shanghai 318 5.8% 4 Beijing 309 8.0%
YTD Sep.2008 3844 1.8% 5 Beijing 254 4.7% 5 Shanghai 292 7.6%
2005 906 0.8% 1 Zhejiang 660 24.5% 1 Zhejiang 764 21.0%
2006 1338 1.1% 2 Guangdong 493 18.3% 2 Guangdong 509 14.0%
2007 2694 1.3% 3 Beijing 206 7.6% 3 Beijing 382 10.5%
YTD Sep.2007 1797 1.2% 4 Shanghai 181 6.7% 4 Liaoning 279 7.7%
YTD Sep.2008 3630 1.7% 5 Liaoning 147 5.5% 5 Shanghai 267 7.4%
2005 1286 1.1% 1 Guangdong 1367 26.9% 1 Guangdong 832 23.0%
2006 1369 1.1% 2 Zhejiang 622 12.2% 2 Liaoning 389 10.8%
2007 5085 2.4% 3 Liaoning 480 9.4% 3 Zhejiang 362 10.0%
YTD Sep.2007 3753 2.4% 4 Beijing 300 5.9% 4 Beijing 218 6.0%
YTD Sep.2008 3612 1.7% 5 Shanxi 228 4.5% 5 Shanxi 192 5.3%
2005 1076 1.0% 1 Beijing 352 12.4% 1 Beijing 431 12.9%
2006 2062 1.7% 2 Guangdong 323 11.4% 2 Guangdong 376 11.3%
2007 2836 1.3% 3 Shichuan 218 7.7% 3 Shichuan 342 10.3%
YTD Sep.2007 2046 1.3% 4 Zhejiang 211 7.4% 4 Zhejiang 247 7.4%
YTD Sep.2008 3331 1.5% 5 Shandong 151 5.3% 5 Shandong 199 6.0%
2005 1877 1.7% 1 Beijing 674 20.9% 1 Beijing 695 21.1%
2006 2493 2.0% 2 Zhejiang 405 12.6% 2 Zhejiang 394 12.0%
2007 3219 1.5% 3 Jiangsu 243 7.5% 3 Shandong 288 8.7%
YTD Sep.2007 2324 1.5% 4 Shandong 236 7.3% 4 Jiangsu 262 8.0%
YTD Sep.2008 3292 1.5% 5 Shanghai 223 6.9% 5 Shanghai 226 6.9%
2005 1 0.0% 1 Zhejiang 790 24.6% 1 Zhejiang 877 28.8%
2006 1045 0.8% 2 Guangdong 765 23.8% 2 Guangdong 520 17.1%
2007 3215 1.5% 3 Shanghai 327 10.2% 3 Jiangsu 311 10.2%
YTD Sep.2007 2362 1.5% 4 Jiangsu 323 10.0% 4 Shanghai 299 9.8%
YTD Sep.2008 3046 1.4% 5 Beijing 231 7.2% 5 Beijing 231 7.6%
2005 928 0.8% 1 Beijing 510 15.9% 1 Beijing 490 17.6%
2006 1848 1.5% 2 Guangdong 496 15.4% 2 Zhejiang 324 11.6%
2007 3214 1.5% 3 Zhejiang 380 11.8% 3 Guangdong 296 10.6%
YTD Sep.2007 2370 1.5% 4 Jiangsu 278 8.6% 4 Jiangsu 282 10.1%
YTD Sep.2008 2790 1.3% 5 Shanghai 238 7.4% 5 Shanghai 243 8.7%
2005 686 0.6% 1 Zhejiang 651 21.7% 1 Zhejiang 558 20.2%
2006 1775 1.4% 2 Guangdong 397 13.2% 2 Guangdong 297 10.8%
2007 3005 1.4% 3 Beijing 305 10.1% 3 Beijing 290 10.5%
YTD Sep.2007 2206 1.4% 4 Jiangsu 174 5.8% 4 Jiangsu 215 7.8%
YTD Sep.2008 2762 1.3% 5 Liaoning 118 3.9% 5 Liaoning 130 4.7%
2005 0.0% 1 Guangdong 523 19.7% 1 Guangdong 457 16.7%
2006 14 0.0% 2 Zhejiang 429 16.1% 2 Zhejiang 422 15.4%
2007 2658 1.3% 3 Beijing 225 8.5% 3 Beijing 310 11.3%
YTD Sep.2007 2029 1.3% 4 Jiangsu 181 6.8% 4 Jiangsu 207 7.5%
YTD Sep.2008 2743 1.3% 5 Shanghai 165 6.2% 5 Shanghai 154 5.6%
2005 0.0% 1 Guangdong 323 14.0% 1 Beijing 318 12.1%
2006 0.0% 2 Beijing 234 10.2% 2 Inner Mongolia 202 7.7%
2007 2302 1.1% 3 Zhejiang 201 8.7% 3 Zhejiang 199 7.6%
YTD Sep.2007 1499 1.0% 4 Liaoning 194 8.4% 4 Liaoning 180 6.9%
YTD Sep.2008 2625 1.2% 5 Inner Mongolia 150 6.5% 5 Guangdong 177 6.7%
2005 372 0.3% 1 Guangdong 306 15.6% 1 Beijing 338 13.6%
2006 1356 1.1% 2 Beijing 203 10.3% 2 Guangdong 288 11.6%
2007 1963 0.9% 3 Zhejiang 184 9.4% 3 Zhejiang 236 9.5%
YTD Sep.2007 1344 0.9% 4 Shichuan 120 6.1% 4 Liaoning 194 7.8%
YTD Sep.2008 2489 1.2% 5 Liaoning 116 5.9% 5 Shichuan 126 5.1%
2005 2843 2.5% 1 Zhejiang 375 13.1% 1 Beijing 326 15.0%
2006 1668 1.3% 2 Beijing 370 12.9% 2 Zhejiang 279 12.8%
2007 2859 1.4% 3 Jiangsu 325 11.4% 3 Jiangsu 201 9.2%
YTD Sep.2007 2168 1.4% 4 Guangdong 290 10.1% 4 Shanghai 186 8.6%
YTD Sep.2008 2175 1.0% 5 Shanghai 205 7.2% 5 Guangdong 173 8.0%
2005 0.0% 1 Zhejiang 578 25.5% 1 Zhejiang 549 26.0%
2006 1645 1.3% 2 Guangdong 353 15.6% 2 Guangdong 282 13.4%
2007 2263 1.1% 3 Shanghai 214 9.5% 3 Beijing 211 10.0%
YTD Sep.2007 1676 1.1% 4 Jiangsu 196 8.7% 4 Jiangsu 194 9.2%
YTD Sep.2008 2109 1.0% 5 Beijing 167 7.4% 5 Shanghai 175 8.3%
2005 5182 4.6% 1 Zhejiang 834 23.7% 1 Zhejiang 471 23.8%
2006 4078 3.3% 2 Guangdong 516 14.7% 2 Jiangsu 214 10.8%
2007 3519 1.7% 3 Jiangsu 404 11.5% 3 Guangdong 203 10.3%
YTD Sep.2007 2794 1.8% 4 Beijing 272 7.7% 4 Beijing 150 7.6%
YTD Sep.2008 1976 0.9% 5 Shanghai 174 4.9% 5 Shanghai 108 5.5%
2005 441 0.4% 1 Beijing 439 20.1% 1 Beijing 383 20.1%
2006 875 0.7% 2 Zhejiang 386 17.7% 2 Zhejiang 374 19.6%
2007 2184 1.0% 3 Shanghai 294 13.5% 3 Shanghai 203 10.6%
YTD Sep.2007 1511 1.0% 4 Guangdong 292 13.4% 4 Guangdong 202 10.6%
YTD Sep.2008 1909 0.9% 5 Jiangsu 189 8.7% 5 Jiangsu 168 8.8%
2005 66732 59.3%
2006 61838 49.5%
2007 83933 39.7%
YTD Sep.2007 63165 40.8%
YTD Sep.2008 71107 32.9%
2005 112486 100.0%
2006 124912 100.0%
2007 211265 100.0%
YTD Sep.2007 154729 100.0%
YTD Sep.2008 215990 100.0%
Port of Barcelona Chair of Logistics 70

Automotive Industry in China
Annex VIII. Comparison of data from different sources of
information
Passenger Car 2007-China
Options
Customs (8703) Fourin(CAAM)
Database
CEIC(CAAM) Automarket Eurostat (8703)
Car 188,638
SUV 25,671
Minibus 43,210
Other 6,982
Export
Total 1,617,350 246,025 257,519 264,501
Export to Spain 38,191 35,106
Export to Europe27 465,105 392,763
Automotive 2007-China
Options
Customs (8703)
Database
Fourin(CAAM) CEIC(CAAM) Automarket Eurostat (8703)
Export 2,102,778 614,412 612,380
Export to Spain 38,318
Export to Europe27 472,599
Passenger Car 2006-China
Options
Export
National Bureau of Statistics Fourin of CEIC China Automarket
Car 93,315
SUV 7,984
Minibus 14,168
Other 10,877
Total 119,394 115,467 126,344
Passenger Car 2005-China
Options
Customs (8703)
Database
Fourin CEIC Automarket
Car 31,124
SUV 1,844
Minibus 5,844
Other 8,373
Export
Total 963,852 42,881 38,785 47,185
Port of Barcelona Chair of Logistics 71

Automotive Industry in China
Annex IX. Overview of the main RoRo terminals in China
Type Terminal Share holders-(CN)
Main RoRo Terminals in China
Share holders(EN) In short(En) Share(%)
RoRo
广州港南沙汽车码头有限公司
Guangzhou Port Nansha Automotive
terminal Co. Ltd.
大连汽车码头
Port of Dalian Automotive Terminal
Co. Ltd.
上海海通国际汽车码头有限公司
Shanghai Haitong International
automotive terminal Co. Ltd.
天津港环球滚装码头有限公司
Tianjin Port roro terminal Co.Ltd.
广州港集团有限公司 Guangzhou Port Group GZ Port
广州汽车工业集团有限公司 Guangzhou Automobile Industry Group Co., Ltd GAIG
广州南沙资产经营有限公司 Guangzhou Nansha Assets Operation Co., Ltd. GNAO
日本邮船株式会社 NYK NYK
株式会社商船三井 Mitsui O.S.K. Lines MOL
大连港集团有限公司 PDA Corporation PDA 40
中远太平洋有限公司 COSCO Pacific LTD COSCOPAC 30
日本邮船株式会社 NYK NYK 30
上海国际港务(集团)股份有限公司 Shanghai International Port Group SIPG 40
上海汽车工业销售有限公司 Shanghai Automobile Industry Co.,LTD. SAIC 35
日本邮船株式会社 NYK NYK 15
华轮威尔森瑞典中区码头公司 Wallenius Wilhelmsen Logistics WWL 5
上海汽车工业香港有限公司 Shanghai Automotive Industry Co.,LTD. Hong Kong SAIC (H.K.) 5
日本邮船株式会社 NYK NYK 34
挪威华轮-威尔森码头北方有限公司 Wallenius Wilhelmsen Logistics WWL 15
天津港股份有限公司 Tianjin Port holdings Tianjin Port 51
武汉港沌口商品汽车滚装码头 武汉港务集团有限公司 Wuhan Port Group Co., Ltd. Wuhan Port Group 100
奇瑞汽车滚装码头有限公司 奇瑞汽车股份有限公司 Chery 100
1.重庆码头 Chongqin
2.涪陵码头 Fuling
3.万州码头 Wanzhou 重庆港务集团有限公司 Chongqin Port Group Co.,Ltd CQG 100
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Automotive Industry in China
Annex X. Homologation in EC (EWVTA) (list of Applicable
directives)
List of applicable Directives related to passive safety:
REFERENCE TITLE DESCRIPTION
70/221/EEC FUEL TANKS High pressure, fire stability, temperature endurance, mechanical strength
70/221/EEC REAR UNDERRUN PROTECTION Geometrical compliance
70/387/EEC DOORS, LATCHES AND HINGES Static strength, dynamic resistance
74/60/EEC INTERIOR FITTINGS Design specifications, energy absorption capability
74/297/EEC BEHAVIOUR OF STEERING COLUMN Design specifications, crash capability
74/408/EEC SEAT STRENGH Seat back static strength, anchorages static strength, anchorages dynamic strength
74/483/EEC EXTERNAL PROJECTIONS Design specifications
76/115/EEC SEAT-BELT ANCHORAGES Design specifications, installation requirements, static strength
77/389/EEC TOWING DEVICES Design specifications, static strength
77/541/EEC SEAT-BELT INSTALLATION Design specifications, installation requirements
78/932/EEC HEAD RESTRAINT Design specifications, installation requirements, static strength
96/79/EEC HEAD ON COLLISION Biomechanical (dummies) requirements, crash capability
96/27/EC SIDE COLLISION Biomechanical (dummies) requirements, crash capability
2003/102/EEC PEDESTRIAN PROTECTION Biomechanical (dummies) requirements, energy absorption capability
List of applicable Directivesrelated to powertrain:
REFERENCE TITLE DESCRIPTION
70/157/EEC SOUND LEVEL Standby test, pass by test
70/220/EEC EMISSIONS (Gasoline& diesel) Pollutant (CO, HC, NOx, particles) emissions requirements in different test cycles and conditions
72/245/EEC EMC Electromagnetic emissions, immunity
72/306/EEC DIESEL SMOKE Smoke opacity requirement
80/1268/EEC CO2 & FUEL CONSUMPTION CO2 emission requirements, fuel consumption control
80/1269/EEC POWER Power control
REFERENCE TITLE
List of applicable Directivesrelated to active safety:
DESCRIPTION
70/311/EEC STEERING EFFORT Wheel turn effort requirements, drivability specifications
70/388/EEC AUDIBLE WARNING DEVICES INSTALLATION Sound level requirements, component specifications
71/127/EEC REAR-VIEW MIRROR INSTALLATION Field of view requirements, component specifications
71/320/EEC BRAKE SYSTEM Performance requirements under different driving conditions, component specifications
75/443/EEC SPEEDOMETER AND REVERSE GEAR Accuracy requirements, presence
76/756/EEC LIGHTING INSTALLATION Installation requirements, component specifications, presence
77/649/EEC FIELD OF VIEW Geometrical requirements
78/317/EEC DEFROST AND DEMIST Performance requirements
78/318/EEC WIPER AND WASHER Performance requirements, component specifications
78/548/EEC HEATING SYSTEMS (M1) Presence
78/549/EEC WHEEL GUARDS Geometrical requirements
92/22/EEC SAFETY GLAZING INSTALLATION Installation requirements, component specifications
92/23/EEC TYRE INSTALLATION Installation requirements, component specifications
Port of Barcelona Chair of Logistics 73

Automotive Industry in China
REFERENCE TITLE
List of applicable Directivesrelated to whole vehicle:
DESCRIPTION
70/156/EEC EWVTA Addition of all separate Directives
70/222/EEC REAR REGISTRATION PLATES Geometrical specifications
74/61/EEC UNAUTHORISED USE Design specifications, strength requirements, presence
76/114/EEC STATUTORY PLATES AND INSCRIPTIONS Design specifications, presence
78/316/EEC IDENTIFICATION OF CONTROLS Design specifications, presence
92/21/EEC MASSES AND DIMENSIONS, M1 Design specifications
REFERENCE TITLE
List of applicable Directives related to components:
DESCRIPTION
77/541/EEC SEAT-BELTS Strength requirements after different preconditioning
76/757/EEC RETRO-REFLECTOR Durability requirements, geometrical specifications, reflection capability
76/758/EEC FRONT POSITION LAMP Durability requirements, geometrical specifications, color specifications, intensity specifications
76/758/EEC REAR POSITION LAMP Durability requirements, geometrical specifications, color specifications, intensity specifications
76/758/EEC STOP LAMP Durability requirements, geometrical specifications, color specifications, intensity specifications
76/759/EEC DIRECTION-INDICATOR LAMP Durability requirements, geometrical specifications, color specifications, intensity specifications
76/760/EEC REAR REGISTRATION PLATE LAMP Durability requirements, geometrical specifications, color specifications, intensity specifications
76/761/EEC HEADLAMP (INCLUDING BULBS) Durability requirements, geometrical specifications, color specifications, intensity specifications
76/762/EEC FRONT FOG LAMP Durability requirements, geometrical specifications, color specifications, intensity specifications
77/538/EEC REAR FOG LAMP Durability requirements, geometrical specifications, color specifications, intensity specifications
77/539/EEC REVERSING LAMP Durability requirements, geometrical specifications, color specifications, intensity specifications
70/388/EEC HORN, M1 Durability requirements, sound pressure requirements
71/127/EEC REAR-VIEW MIRRORS Durability requirements, geometrical specifications, strength requirements, reflection capability
92/23/EEC TYRES strength requirements, reflection capability
92/22/EEC GLAZING Strength requirements, construction specifications
94/20/EEC COUPLING DEVICES Strength requirements, design specifications
Comments:
European emission standards define the acceptable limits for exhaust emissions of
new vehicles sold in EU member states. The emission standards are defined in a
series of European Union directives staging the progressive introduction of
increasingly stringent standards.
Currently, emissions of nitrogen oxide (NOx), hydrocarbons (HC), carbon monoxide
(CO) and particulate matter (PM) are regulated for most vehicle types, including cars,
lorries, trains, tractors and similar machinery, barges, but excluding seagoing ships
and airplanes. For each vehicle type, different standards apply. Compliance is
determined by running the engine at a standardized test cycle. Non-compliant
vehicles cannot be sold in the EU 32, but new standards do not apply to vehicles
already on the roads. No use of specific technologies is mandated to meet the
standards, though available technology is considered when setting the standards. New
models introduced must meet current or planned standards, but minor lifecycle model
revisions may continue to be offered with pre-compliant engines.
32 We do not know if Brilliance that is being sold in some European countries passed the
correspondent European emission standard.
Port of Barcelona Chair of Logistics 74

Automotive Industry in China
Non-CO2 fuel emission: stages and legal framework
The stages are typically referred to as Euro 1, Euro 2, Euro 3, Euro 4 and Euro 5 fuels
for Light Duty Vehicle standards. The corresponding series of standards for Heavy
Duty Vehicles use Roman, rather than Arabic numerals (Euro I, Euro II, etc.)
The legal framework consists in a series of directives, each amendments to the 1970
Directive 70/220/EEC. Here is a summary list of the standards, when they come into
force, what they apply to, and which EU directives provide the definition of the
standard.
Euro 1 (1993):
o For passenger cars - 91/441/EEC.
o Also for passenger cars and light trucks - 93/59/EEC.
Euro 2 (1996) for passenger cars - 94/12/EC (& 96/69/EC)
Euro 3 (2000) for any vehicle - 98/69/EC
Euro 4 (2005) for any vehicle - 98/69/EC (& 2002/80/EC)
Euro 5 (2008/9) and Euro 6 (2014) for light passenger and commercial
vehicles - 2007/715/EC
These limits supersede the original directive on emission limits 70/220/EEC.
Port of Barcelona Chair of Logistics 75

Automotive Industry in China
Annex XI. Overview of the situation of the production centers
Port of Barcelona Chair of Logistics 76

Location of automotive companies’ production
centers in China (2009)

Four main auto production zones
Shiyan
Wuhan
Xiangfan
Wuhu
Pearl River Delta
Guangzhou
Shenzhen
Liuzhou
Shengyang
Yantai
Qindao
Tianjin
Jilin
Yangtze Delta
Shanghai
Hangzhou
Ningbo
Nanjing
Lingang
Yizheng

Four main sea RORO terminals & Yangtze River terminals
① Guangzhou Port Nansha Automotive terminal Co. Ltd. *
② Shanghai Haitong International automotive terminal Co. Ltd.*
③ Tianjin Port roro terminal Co.Ltd. *
④ Port of Dalian Automotive Terminal Co. Ltd. *
⑤ RORO in Wuhu
⑥ RORO in Wuhan
⑦ RORO in Chongqing
* The four sea RORO terminals are the
only ones that are allowed to import
passenger cars.

The Big 3
• SAIC
• FAW
• DFM

SAIC Group — Mfg、R&D Center
Manufacturing base
R&D Center
① Shanghai
② Ningbo
③ Tianjin
④ Shenzhen
⑤ Guangzhou
⑥ Dalian
Chongqing
Liuzhou
Shenyang
Nanjing
Nanjing
Shanghai Lingang
Yantai
Qindao
Yizheng
Shanghai
Shanghai
Anting

SAIC Motor Overseas — Mfg、R&D Center、Office
Manufacturing base
R&D Center
Company
Production base
(Longbridge, UK)
North America Inc.
(Detroit, USA)
Production base
(Mexico, South America)
SAIC Motor Technical Center
(Leamington Spa. UK)
SAIC Europ GmbH
(Hambury. Germany)
SAIC Korea Co., Ltd
(Seoul, Korea)
SAIC Hong Kong Co., Ltd.
Saangyong Motor
(Oyongyang, Korea)
SAIC Japan Co., Ltd.
(Tokyo, Japan)

FAW Group — Mfg、R&D Center
Manufacturing base
R&D Center
① Shanghai
② Ningbo
③ Tianjin
④ Shenzhen
⑤ Guangzhou
⑥ Dalian
Sichuan
Yunnan
Hainan
Tianjin
Tianjin
Heilongjiang
Shandong
Jilin
Qindao

Dongfeng Motor — Mfg、R&D Center
Manufacturing base
R&D Center
① Shanghai
② Ningbo
③ Tianjin
④ Shenzhen
⑤ Guangzhou
⑥ Dalian
Shiyan
Liuzhou
Guangzhou
Guangzhou
Xiangfan
Wuhan
Wuhan

New Players
• Chery
• Geely
• Great Wall
• BYD

Chery Group — Mfg、R&D Center
Manufacturing base
R&D Center
① Shanghai
② Ningbo
③ Tianjin
④ Shenzhen
⑤ Guangzhou
⑥ Dalian
Anhui Wuhu Shanghai

Chery Group Overseas — Mfg、R&D Center、Office
n Manufacturing base
R&D Center
Company
Uruguay
Ukraine
Russia
Egypt
Iran
Indonesia

Geely Group — Mfg、R&D Center
Manufacturing base
R&D Center
① Shanghai
② Ningbo
③ Tianjin
④ Shenzhen
⑤ Guangzhou
⑥ Dalian
Lanzhou
Jinan
Hangzhou
Shanghai
Shanghai
Luqiao
Luqiao
Ningbo
Ningbo
Xiangtan
Linhai
Linhai

Great Wall — Mfg、R&D Center
Manufacturing base
R&D Center
① Shanghai
② Ningbo
③ Tianjin
④ Shenzhen
⑤ Guangzhou
⑥ Dalian
Hebei Baoding
Hebei Baoding

BYD — Mfg、R&D Center
Manufacturing base
R&D Center
① Shanghai
② Ningbo
③ Tianjin
④ Shenzhen
⑤ Guangzhou
⑥ Dalian
Xi’an
Beijing
Shenzhen
Shenzhen
Shanghai
Shanghai

Joint Ventures
• GM – SAIC
• VW – SAIC
• Changan – Ford

SAIC VW — Mfg、R&D Center
Manufacturing base
R&D Center
① Shanghai
② Ningbo
③ Tianjin
④ Shenzhen
⑤ Guangzhou
⑥ Dalian
Nanjing
Shanghai
Shanghai

SAIC GM — Mfg、R&D Center
Manufacturing base
R&D Center
① Shanghai
② Ningbo
③ Tianjin
④ Shenzhen
⑤ Guangzhou
⑥ Dalian
*Liuzhou base is hold by SGM-Wuling
Liuzhou
Anhui Guangde
Shenyang
Yantai
Shanghai
Jinqiao
Shanghai

Chang’an Ford Mazda— Mfg、R&D Center
Manufacturing base
R&D Center
① Shanghai
② Ningbo
③ Tianjin
④ Shenzhen
⑤ Guangzhou
⑥ Dalian
Chongqing
Nanjing
Nanjing