2. Overview of China Auto Market  The largest auto market in 2009  13.6 million vehicles sold in 2009  10.8 million passenger cars  10 million sold in the US (previously worlds’ largest market)  Rapidest light vehicle development  Private car sales 53% higher than in 2008  Large Domestic consumption  Only 369,600 out of 13.6m cars were exported in 2009  Government stimulation  Cuts in sales tax for small cars

3. Insight of China Auto Industry  State-owned enterprise  China First Automobile Group Corp. (FAW)  Dongfeng Motor Corp. (DMC)  Shanghai Automotive Industry Corporation (SAIC)

4. Insight of China Auto Industry  Joint-venture  Partly owned by local enterprise, partly owned by foreign brand  Local enterprise provides lands, labor  Foreigners provides technologies and capital  Made in China, Sold in China

5. Insight of China Auto Industry  Joint-venture  3 Giants  SAIC – Volkswagen, General Motor,  FAW – Volkswagen, Toyota  DFM – Peugeot-Citroen, Honda, Nissan  Others  Brilliance – BMW  Chang’an – Ford, Mazda

6. Insight of China Auto Industry  Local brands  Since 1994  BYD Auto (1211.HK)  Geely Automobile (0175.HK)  Great Wall Motors (2333.HK)  Brilliance China Auto  Roewe  Chery

7. BYD Auto (1211.HK)  Established in 2003  Subsidiary of mobile phone battery maker (BYD Co Ltd)  448,400 car sales in 2009  1-year return 405.87%  Today  130,000 people  8 factories in China  One factory each in India, Hungary, and Romania

8. Why BYD ?

9.  Rapid growth

10. Why BYD ?  The S.8  Copy of Mercedes-Benz CLK-Class

11. Why BYD ?  People  President – Wang Chuanfu  The wealthiest man in China Since 2009  Buffet described “ he is a combination of Thomas Edison and Jack Welch”  Professional in both technology and management  Famous investor – Warren Buffet  Bought up 10% shares in Dec, 2008  Purchase at $8/share  Current $78/share?

12. Why BYD ?  Model  Top selling sedan  F3 (appears like Toyota and Honda)  RMB60,000/car  Green Technology  Hybrid Car  F3DM  The World’s 1 st mass-produced plug-in hybrid vehicle  Pure Electric Car  E6  BYD - The World’s largest battery manufacturer

13. Why BYD ?  Sales (Statistics from CAAM)  Top 10 sales automakers (Jan and Feb, 2010)  Ranks no.8  95,400

14. Why BYD ?  The most potential automotive exporter  Began to export since 2006  To Africa, South America and the Middle East in 2009  Plan to enter the European and the US market  High gas price  Most promising market for electric cars

15. Do you believe?  Two Goals  Become No.1 in China in 2015  Become No.1 in the world in 2025