1. Speech at the OICA 2010 Round Roundtable
Dong Yang
Executive Vice-chairman & Secretary General, CAAM
New Deli, Oct. 22, 2010

2. From 1998 – 2008, China’s GDP grew 7 times, where as the total length of operational highways increased by 6 times, from 9,000 Km to over 60,000 Km. The fast economic growth stimulated the demand for transportation, whereas the development of highways and automotive manufacturing have also propelled continuous growth of the economy. 2

3. China’s GDP Growth tb RMB3

4. China’s Highway Growth 10t KM4

5. --China produced 13.79 million automobiles,
--an increase of 142% over 2005,
--accounting for 22.6% of global output,
-- ranking world’s No. 1. 5

6. Annual Output Development 10t units6

7. China’s Output vs. World’s7

8. 3. Despite the fast-growing output, China’s auto ownership per capita is relatively low in comparison with other countries. From the market perspective, there is still room for huge growth, especially in China’s vast countryside. 8

9. year China Other countries 9 In use（unit） people （/1000）
GDP/person usd
country or district
2001 14
901
Korea
1980
1633
2002 16
1087
Japan 15
1960
458
2003 18
1090
Tai Wan
1975 -
2004 21
1490 20
1983
1923
2005 24
1702
Brazil 25
1965
374 23
1984
2054
2006 28
2017 27
1985
2747
2007 35
2460 39
1987
3110
2008 38
3314 9

10. 4. Along with the fast growth of the auto industry, the pressure on energy, environment and traffic has also increased. It has become an imperative to develop new energy vehicles, seek alternative fuels or reduce fuel consumption. Climatic challenges such as greenhouse effect as well as environmental protection have also attracted attention from all countries. It is now a consensus among governments that the road of low carbon economy and sustainability must be pursued. 10

11. The Chinese government is beefing up policies that favor the development of new energy vehicles and small, energy-saving vehicles. Policies merely aimed at increasing auto consumption are being phased out. 11

12. On May 31, 2010, the Chinese government released the policy to award a one-off subsidy to private purchases of PHEVs and BEVs. The subsidy is based on the energy density of the battery pack. Each qualified model will be awarded with RMB3,000 per kwh. The max subsidy for PHEV is RMB50,000, for BEV is RMB60,000 12

13. On June 30, 2010, the Chinese government released the policy to provide a one-off subsidy of RMB3,000 to each qualified energy-saving model, which is materialized through payment to customers by the OEMs upon completion of sales. 13

14. 4. Along with the fast growth of the auto industry, the pressure on energy, environment and traffic has also increased. It has become an imperative to develop new energy vehicles, seek alternative fuels or reduce fuel consumption. Climatic challenges such as greenhouse effect as well as environmental protection have also attracted attention from all countries. It is now a consensus among governments that the road of low carbon economy and sustainability must be pursued. 14

15. 5. According to CAAM’s forecast, China’s output of automobiles in 2010 will reach 17 million units, an increase of 23% over 2009, whereas 2011’s output will be 10 – 15% higher than 2010. 15

16. Thank you ! 16