China Market Outlook_EN.pdf

China Market Outlook: Boom Amid Gloom Jerry Huang Manager, Greater China Vehicle Forecasts Global Outlook 23 February 2010 2010 ? CSM Worldwide, Inc. Presentation Outline 2009 Market Review 2010 Prospects Trends Long-Term Outlook Summary 2010 ? CSM Worldwide, Inc. 2009 Market Review Unprecedented Spree China Passenger Vehicle* Monthly Output 2009 2007 2008 2006 Real demand is strong and ready; was triggered by government incentive policy that’s improved consumer sentiment since February *Passenger vehicles include sedans, MPVs and SUVs 2010 ? CSM Worldwide, Inc. Full-year 2009 output reached 8.36 million units, up 46% 2009 Market Review 2009 Passenger Vehicle Output Breakdown Sedan: Still First Choice Sedan production reached 7.45 million units, up 48% versus 2008 SUVs inc easing in pop la it in cities SUV p od ction ose q ickl 2010 ? CSM Worldwide, Inc. r u r y ; r u r u y 2009 Market Review Small and Compact Cars Boomed 2009 Sedan Output By Engine Displacement Cars with engines =1.6L covered by government Purchase Tax Cut Policy In first eleven months, market share of cars with =1.6L grew quickly, up 2010 ? CSM Worldwide, Inc. 9.0% in sedan segment 2009 Market Review Demand Diversifying China Passenger Vehicle Body Type Pattern Wagon SUV MPV Hatchback Notchback Notchback (sedan/saloon) = largest portion; hatchback gaining popularity 2010 ? CSM Worldwide, Inc. Will China market follow pattern of Taiwan market? 2009 Market Review 2009 SUV Output Breakdown City SUV Speeds Up Off-road SUVs declined as fleet market shrunk due to economic slowdown City SUVs (CUVs/Crossovers) lure more young middle class in cities 2010 ? CSM Worldwide, Inc. 2009 Market Review China Passenger Vehicle Market Share By Brand Origins No Country Dominates US Korea 12% 10% Europe21% Japan27% Local30% Local brands rebounded due to incentive policy Japanese OEMs shrunk due to Toyota’s decline 2010 ? CSM Worldwi