Things we learned in 2006 about the Chinese Automotive Industry

• The Chinese domestic market is growing at about 12% per annum.
• 2006 was a total of about 7 million units.
• The Chinese OEM’s are all gearing up for export sales.
• The product range is well designed and well built.
• The suggested 5 year time frame of acceptable quality levels for export looks likely to be beaten.
• The Central Government will issue export licenses to ensure quality control and discourage small volume manufacturers.
• Emission levels are targeted to meet Euro 4 in 2007 for many exporters.
• Diesel options are well advanced.

2006 sales sourced from the Shanghai Daily 10 January 2007.

• VW sales (Including AUDI) nationally were 711,298 vehicles.
• FAW – VW sold a record 350,000 units including 161,000 Jetta sedans over 11 months.
• SVW sold 352,000 units with sales of 96,300 Passats for the 11 months.
• GM sales (including trucks and commercial vehicles) were 876,747 vehicles sold.
• GM China’s Chairman Kevin Wale said it expects to sell 1 million units in 2008.