Speech at Sino-Austrian Economic Forum in Shanghai on the occasion of President Dr. Fischer´s China visit in Jan. 2010

1. Shanghai, the Automotive Capital of P.R. China
Sino-Austrian Economic Forum Shanghai, 22.1.2010, p. 0 of 12

2. Shanghai, the Automotive Capital of P.R. China
Automotive Business Consulting (HK) Limited
香港汽车设备商务咨询有限公司: 香港 -上海 - 维也纳 - 胡志明市
Hong Kong – Shanghai – Vienna – HCM (Partner) – UK (soon)
abc-shanghai.com
2004 - 2010
Dr. Michael Sikora / 施迈克博士
Managing Director /总经理
Shanghai, the Automotive Capital of P.R. China
Sino-Austrian Economic Forum Shanghai, 22.1.2010, p. 1 of 12

3. Automotive Industry in P.R. China is booming
985.600
Y2005 Y2006 Y2007 Y2008 Y2009
829.479
802.302
754.776
643919 673055 704301
605328 668507
632542
522433
472687
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source: CPCA, China Passenger Car Association, 10.1.2010 Unit: sold passenger vehicles
Shanghai, the Automotive Capital of P.R. China
Sino-Austrian Economic Forum Shanghai, 22.1.2010, p. 2 of 12

4. Shanghai´s contribution to P.R. China >8 %
National total production
Shanghai Volkswagen
4.8% Shanghai GM
91.7% 8.3% Shanghai Motor
2.7% Shanghai Maple
0.6%
0.3% Shanghai Huizhong
0.0%
Shanghai Sunwin
Shanghai Volkswagen 716560
National total production 13790994 91.7% Shanghai GM 399680
Shanghai total production 1250477 8.3% Shanghai Motor 87927
Shanghai Maple E40000
Shanghai Huizhong 3205
Source: abc Research Shanghai Sunwin 3105
Shanghai, the Automotive Capital of P.R. China
Sino-Austrian Economic Forum Shanghai, 22.1.2010, p. 3 of 12

5. Shanghai, China´s first auto-friendly city I
1901 First automobiles imported into the city (1911: 271 cars)
1906 Shanghai Automobile Club founded: driver liscence
1920 2,000 vehicles registered for rich Chinese and foreigners
Garages provided maintainance, car renting & auto body building
Chinese customer preference were different to foreigners:
• Limousines & town cars
• High-grade upholstery material
• Lots of accessories: cigar lighters,
ash receivers, fancy lamps, mirrors
silk windows and door shades
1930s: Golden age for taxi companies, more then 100
Shanghai, the Automotive Capital of P.R. China
Sino-Austrian Economic Forum Shanghai, 22.1.2010, p. 4 of 12

6. Shanghai, China´s first auto-friendly city II
1934 More then 5000 cars in the city, US Chrysler imported Imperial Airflow CL sedan
to Shanghai
Shanghai, the Automotive Capital of P.R. China
Sino-Austrian Economic Forum Shanghai, 22.1.2010, p. 5 of 12

7. Emerging Chinese carmakers of P. R. China
13.7.1956 No.1 Auto Automotive Works in Changchun
with light truck production
1958 Shanghai Auto founded, producing famous Phoenix brand
SH760 sedan
雷锋 Lei Feng
1969 SAW Second Automotive Works (Dongfeng Motor)
founded in Shiyan city, Hubei Province
• Donfeng Jinlong东风金龙
邓小平 Deng Xiao Ping
Shanghai, the Automotive Capital of P.R. China
Sino-Austrian Economic Forum Shanghai, 22.1.2010, p. 6 of 12

8. Closing the gap to mature car markets I
Rapid growth of Chinese automotive industry ...
“It took Japan 40 years to become a great automotive nation, South Korea 20 years and I think it will take
China as little as 10 to 15 years” Giorgio Guigiaro, Car Designer (FAW Besturn B70, Brilliance BS4, BS4, FRV)
Car MPV SUV Car+MPV+SUV Mini-bus Total
Production 12/09 856,980 34,219 91,276 982,475 194,616 1,177,091
Production 11/09 762,268 27,292 79,473 869,033 208,410 1,077,443
Production 12/08 369,619 9,072 44,585 423,276 77,755 501,031
Increase on prev.
12.4% 25.4% 14.9% 13.1% -6.6% 9.2%
Month 2009
Increase same
month last year 131.9% 277.2% 104.7% 132.1% 150.3% 134.9%
Production 2009 7,427,138 252,624 712,553 8,392,315 1,996,782 10,389,097
Production 2008 4,989,954 189,214 480,381 5,659,549 1,068,278 6,727,827
Increase on
48.8% 33.5% 48.3% 48.3% 86.9% 54.4%
previous year Σ CN brand origin 2009: 30,7 %
Source: Chinese Passenger Car Association, December 09
Shanghai, the Automotive Capital of P.R. China
Sino-Austrian Economic Forum Shanghai, 22.1.2010, p. 7 of 12

9. SAIC closing the gap by successful acquistions
SAIC is one of the top 3 OEM in China, engaged in manufacturing, sales, R&D and
investment in passenger cars, commercial vehicles and components.
SAIC entered into strategic cooperation with S-GM,
S-VW, SSANGYONG, S-GMW and Sunwin
SAIC independently developed Roewe brand
is a commercial success
Shanghai, the Automotive Capital of P.R. China
Sino-Austrian Economic Forum Shanghai, 22.1.2010, p. 8 of 12

10. SAIC plan to enter DACH region in 2011
Roewe AB11 350
Roewe 150 Roewe 550S
Roewe 750
Roewe SUV
SAIC group (S-VW, S-GM) sold 2,3 mio cars in 2009, target for 2015: 4 mio units
Roewe and MG brand: more then 90,000 units sold in China (+155% in previous year)
SAIC is carefully preparing EU-market entry with A-C segment cars (150, 350 & 550)
Poland: Pol-Mot Holding to introduce Rowei 350, 550 in 2010
Roewe 850
Shanghai, the Automotive Capital of P.R. China
Sino-Austrian Economic Forum Shanghai, 22.1.2010, p. 9 of 12

11. Biz opportunities for Austrian supplier
Establish a LCC sourcing base in P.R. China to deal with global cost pressure
Work with local OEM/Tier-1 and localize production to serve local & global markets
Suppport Chinese OEM/tier-1 to close EU-NCAP 09 & Euro V emission technology gap
中 Pedestrian Safety: Solutions/test pads Redesign of motor hood & front bumper
中 Driver assistance: ESP, seat belt reminder, cruise control with
speed limited, airbag initiator (MEMS for roll-over detection)
中 Side/Back Impacts: active headrest to avoid whiplash
中 EV Engineering: drivetrain, light chassis, battery management,
Electronics, e.g. X-by-wire,….
中 Euro V Emission compliant engine engineering
Shanghai, the Automotive Capital of P.R. China
Sino-Austrian Economic Forum Shanghai, 22.1.2010, p. 10 of 12

12. New ABC-Office at 18th floor, 108m2
Shanghai, the Automotive Capital of P.R. China
Sino-Austrian Economic Forum Shanghai, 22.1.2010, p. 11 of 12

13. Your Success in China is Our Obligation !
谢谢您
和气生财
Shanghai, the Automotive Capital of P.R. China
Sino-Austrian Economic Forum Shanghai, 22.1.2010, p. 12 of 12