AMBITIOUS CHINA AUTOMAKER
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
Insight of China Auto
Industry
 State-owned enterprise
 China First Automobile Group Corp. (FAW)
 Dongfeng Motor Corp. (DMC)
 Shanghai Automotive Industry Corporation (SAIC)
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
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
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
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
Why BYD ?
Why BYD ?
 Rapid growth
Why BYD ?
 The S.8
 Copy of Mercedes-Benz CLK-Class
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?
Why BYD ?
 Model
 Top selling sedan
 F3 (appears like Toyota and Honda)
 RMB60,000/car
 Green Technology
 Hybrid Car
 F3DM
 The World’s 1st mass-produced plug-in hybrid vehicle
 Pure Electric Car
 E6
 BYD - The World’s largest battery manufacturer
Why BYD ?
 Sales (Statistics from CAAM)
 Top 10 sales automakers (Jan and Feb, 2010)
 Ranks no.8
 95,400
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
Do you believe?
 Two Goals
 Become No.1 in China in 2015
 Become No.1 in the world in 2025