Issuing: May 24, 2019 The 20th Issue (Issue No. 246)

Review of Chinese ——Weely Analysis on Hotspots

Information Consulting Center Main Contents

1、Development Environment 2、New Energy Industry 3、ICV Industry 4、Development of Enterprises 5、List of New Models

6、Hotspot：Analysis on Trend of Passenger Veicle Market in April 2019 and Forecast Development Environment

• Industrial production operation of was generally stable from January to April From January to April, the added value of large industrial enterprises increased by 6.2% year-on-year, and the general situation remained stable. From January to April, the growth rate of industrial production declined by 0.3 percentage point from the first quarter. It was the same as that of the whole year of 2018. The general operation was still in a reasonable range. From January to Macro April, the added value of other 40 major industries all achieved year-on-year growth. • China will impose tariffs on some US goods since June 1 Since June 1, 2019, China has increased the tariff rates on the some US goods on the list (USD 60 billion)for goods that have been increased tariffs, imposing tariffs of 25%, 20% or 10% respectively. For tariff item that has previously been increased by 5% tariff, another 5% tariff will continue to be imposed.

• The market share of indigenous brand product has fallen And the small auto enterprises face challenges According to the statistics of CAAM, the sales of indigenous brand passenger vehicles in April totaled 585,000 units, a year-on-year decrease of 27.9%. Especially in the passenger vehicle sector, the market share of indigenous brand products fell to 37.1%. It was the lowest point in three years. At present, there are more than 100 passenger vehicle brands in the domestic market, and most of Market them have the annual production and sales scale of less than 200,000 units. The market reshuffle has begun, and some marginalized brands will withdraw from market rapidly.

• Chongqing announced the new program to boost the auto production and sales to 3 million units in next year Recently, Chongqing issued the Special Action Program for Promoting High-Quality Development of Manufacturing Industry in Chongqing (2019-2022). The government intends to return to the scale of production and sales of 3 million units by 2020.

Information Consulting Center 3 Main Contents

1、Development Environment 2、New Energy Industry 3、ICV Industry 4、Development of Enterprises 5、List of New Models

6、Hotspot：Analysis on Trend of Passenger Veicle Market in April 2019 and Forecast New Energy Industry • Ministry of Industry and Information Technology released the main points of standardization work for new energy vehicles in 2019 The Equipment Industry Department of the Ministry of Industry and Information Technology has organized the National Technical Committee of Auto Standardization to prepare the key points for the establishment of standards for new energy vehicles in 2019. The content covers the five major areas of : Electric vehicle safety, electric vehicle energy consumption, fuel cell electric Policy vehicle, charging facility and hydrogen refueling system and power battery recycling. • The 4th List of Recommended New Energy Vehicle Models for Promotion and Application in 2019 was issued This list covers a total of 238 models of 74 enterprises, including 221 pure electric vehicle models of 68 enterprises, 12 plug-in hybrid products of 7 enterprises, and 5 models of fuel cell products of 4 enterprises. • More than 90% of the power battery market will be monopolized by the Top 10 companies In 2018, the enterprises in China's power battery industry were greatly impacted by multiple pressures, such as the sharp declines in subsidies, stringent requirements on energy density and range, and the tight capital chains of enterprises. The market entered a period of rapid reshuffling. The concentration rate of the future power battery market will be further strengthened, and the Top 10 companies may occupy more than 90% or more of the market share. Industry • The number of charging piles reached 953,000 units in April, Increasing by 75.2% According to data released by EVCIPA, as of April 2019, the total number of public charging and private charging piles nationwide was 953,000 units, a year-on-year increase of 75.2%. In terms of provinces and cities, the construction of public charging infrastructure is still relatively concentrated in some areas. The public charging infrastructure built in Beijing, Shanghai, Guangdong, Jiangsu, Shandong, Zhejiang, Hebei, Tianjin, Anhui, and Hubei accounts for 75.5% of the total.。 • Zoyte Auto starts the layout in new energy in advance has announced the Five-Year Plan with the 412 Strategy as the guide, and the intelligent service Enterprise and brand rebuilding as the goals, and will start the 3.0 Era. According to the established plan, the company has reserved a series of forward-looking advanced technologies for hydrogen fuel vehicles in advance.

Information Consulting Center 5 New Energy Industry • receives the 7th investment from BYD Daimler and will be merged into the sale system of Benz On May 17, BYD announced that BYD and Daimler( the shareholders of Denza New Energy)increased their capital by 150 million yuan, and the shareholding ratio held by both parties remained 50%. Since 2012, BYD and Daimler have increased their capitals by seven times, with a cumulative amount of more than Rmb 2 billion yuan. • BYD Qin Pro EV Super Version will be launched on May 16 The BYD Qin Pro EV600 Super Version was launched on May 16. The pre-sales price of the new model after deduction of the subsidy is Rmb 190,000-200,000 yuan. In terms of power, the new model still uses the former McPherson/rear multi-link independent suspension, and the engine cover is equipped with double air poles. The new 's power has increased, the maximum power of the motor has increased by 15kW, reaching 135kW, and the peak torque is 280Nm. • Everwin Precision Technology plans to form a new branch with Rmb 100 million for hydrogen business Enterprise On May 16, Shenzhen Everwin Precision Technology Co.,Ltd. announced that it planed to invest Rmb 100 million in the establishment of a wholly-owned subsidiary (Shenzhen Everwin Hydrogen Power Technology Co., Ltd.) in Shenzhen. It is reported that new company will be registered in Shenzhen with a registered capital of Rmb 100 million yuan. The business scope includes the research and development, production and sales of hydrogen fuel cell metal plates. • Guoxuan Hi-Tech and Tata Motors jointly invest 40 million Rupees to set up a battery plant Guoxuan Hi-Tech and Tata Motors intend to jointly establish a company in India. Of which, Guoxuan Hi-Tech will hold 40% of the company. The main products of the joint venture include the design, development, verification and manufacture of battery modules and battery packs, as well as battery management systems for a wide range of passenger and commercial vehicles in the region. • The First Phase Plant of First Battery formally started production On May 10, the first phase of the power battery project of Far East First New Energy Jiangsu Co., Ltd.(12GWh) a wholly- owned subsidiary of Far East Smart Energy Co., Ltd., started the production in Yixing, Jiangsu Province. The plant covers an area of 528 mu, with a total investment of Rmb 2.36 billion yuan and the covered area of of 200,000 square meters.

Information Consulting Center 6 New Energy Industry

30 80000 25 20 60000 15 40000 10 5 20000 0 0 4/11 4/19 4/26 4/30 5/10 5/16 4/11 4/21 4/24 4/29 5/9 5/14 Co:≥99.8% Co:≥20.5% Normal High Superhigh Trend of the Price of Electrolytic Cobalt (Rmb 10,000/ton) Trend of the Price of Graphite Electrode (Rmb/ton)

180 345 179 178.85 179.01 340 340 178 177 176.82 176.82 176.82 335 176 331 332 330 329 330 329 175 175.29 174 325 173 320 4/10 4/20 4/25 4/29 5/11 5/16 4/11 4/20 4/25 4/29 5/11 5/15 Trend of Commodity Index of Lithium Carbonate Trend of Rare Earth Index

Information Consulting Center 7 Main Contents

1、Development Environment 2、New Energy Industry 3、ICV Industry 4、Development of Enterprises 5、List of New Models

6、Hotspot：Analysis on Trend of Passenger Veicle Market in April 2019 and Forecast ICV Industry

• Ministry of Industry and Information Technology: The government will start the establishment of standard for self- driving technologies

On May 15, the Ministry of Industry and Information Technology announced the key points of the standardization of ICV in 2019. It points out that the Ministry of Industry and Information Technology will complete the formulation of basic general standards, to initiate the projects for testing methods and requirements for self-driving at certain situation, start the pre-research on the self- driving data recording, driver takeover capability identification and driving task takeover and other standards urgently needed by the industries, actively organize the tests and certifications for important standard for commercial vehicle fleet, and the preparation of intelligent network guidance documents such as the ICV function and performance evaluation guide.

Policy • Guangdong Province issued an action plan to accelerate the development of 5G industry

Guangdong issued the Action Program for Accelerating the Development of 5G Industry in Guangdong Province (2019 to 2022). According to the program, by the end of 2020, continuous coverage and commercial use of the 5G networks in the central areas in the cities of the Pearl River Delta will be basically achieved; the total number of 5G base stations in the province should reache 60,000, and the number of 5G private users should reach 4 million; 5G demonstration application scenarios should exceed 30. By the end of 2022, the Pearl River Delta will build a 5G city agglomeration, and the main urban areas of western area of Guangdong, northern area of Guangdong and eastern area of Guangdong will achieve continuous coverage of 5G networks; the total number of 5G base stations in the province will reach 170,000, and the number of 5G private users will reach 40 million; the total production value of 5G sector will reach Rmb 1 trillion; 5G demonstration application scenarios will exceed 100.

Information Consulting Center 9 ICV Industry

• Chongqing released the home first demonstration of 5G long-distance driving application under the urban traffic scene in China On May 15, Chongqing Telecom, China Automotive Engineering Research Institute Co., Ltd. and Region Datang Mobile jointly released the home first 5G long-distance driving demonstration in urban traffic scene. The three parties will start the first phase of pilot of the 5G ICV in Xiantao Data Valley. The three main scenarios presented at this stage are 5G+VR application, 5G video live application, and 5G-based vehicle remote control application. • BAIC/Telecom started strategic cooperation to promote 5G Smart Transportation BAIC and China Telecom signed a strategic cooperation agreement, and the two parties will carry out in-depth cooperation in the fields of 5G and intelligent network, Enterprise smart logistics, new retail, data communication and information technology, and information infrastructure construction etc. .The two parties also agreed to jointly carry out the self-driving vehicle tests based on the 5G environment in 2019.

Information Consulting Center 10 Main Contents

1、Development Environment 2、New Energy Industry 3、ICV Industry 4、Development of Enterprises 5、List of New Models

6、Hotspot：Analysis on Trend of Passenger Veicle Market in April 2019 and Forecast Development of Enterprises • completed the overseas R&D layout in , targeting new energy and next-generation mobile technologies The vice president of Geely Auto Group said that Geely 's global engineering research and development system would be extended to Germany. Geely Germany R&D Center will make full use of the advanced technology and R&D capabilities of the German automotive industry, and will be committed to opening up innovative technology platforms in the fields of new energy, autonomous driving and Internet of Vehicles to accelerate the innovation of the Geely brand. Geely will also launch two new models in the second half of this year. • Jing Zhu becomes the chairman of Haima Motor again On May 15, Jingzhu was re-elected as chairman of Haima Motor. Jingzhu pointed out that Haima Motor would focus on developing Passenger strong-power intelligent SUVs, high-security smart MPVs and variable-platform pure electric vehicles in the future. He also hopes to Vehicle transform the sales model from B2B to B2C. Enterprise • will increase its production capacity by 120,000 units a years and launch new model Zhengzhou Branch of Dongfeng Motor Co., Ltd. will use the production lines of Zhengzhou by leasing to produce Venucia brand with an annual production capacity of 120,000 units. The project will completed in 2019, and two new car models (B-SED and C-SED) will be put into production. The initial production capacity was only 15,000 units/year, and it is expected to be increased to 120,000 units/year by 2022. • 's sales target in China this year is 1.6 million units and accelerate the electrification layout in the Chinese market Toyota Motor said that it would launch 10 pure electric vehicle models in China before 2025. The Toyota will try to achieve its China Strategy in 2019 (to realize the annual sales target of 1.6 million units). China will become Toyota's second largest market in the world, surpassing and ranking the second after US market.

Information Consulting Center 12 Development of Enterprises • FAW Jiefang and Bosch signed a strategic alliance agreement and released the upgrade technology FOTA On May 13, FAW Jiefang signed a strategic alliance agreement with Bosch. The two parties will cooperate on related fields such as intelligent network connecting, new energy and the national stage-VI compliant engine system. Bosch will provide advanced vehicle connecting and information security and intelligent vehicle technologies to Jiefang. The two parties will work together to achieve the rapid application of China's commercial vehicle intelligent application program. On May 15, the two parties jointly released the upgraded FOTA technology of FAW Jiefang Commercial Vehicle. Commercial • Futian wants to build a hydrogen fuel bus trial production verification workshop Vehicle On May 15, Beiqi Co., Ltd. announced that it would build 11 labs, hydrogen fuel bus testing workshops and testing Enterprise tracks for intelligent network connecting, electronic and electronic control, EMC, electric vehicles, NVH, chassis , heavy- duty vehicle ring mold, materials, body, vehicle benchmarking and vehicle evaluation. The total investment of the project is 12.68 billion yuan, and the construction period is three years. • Fuzhou Automobile Group increased its holding of Jinlong Automobile On May 14, announced that Motor Group Co., Ltd. successively increased its holding in Xaimen King Long in the first quarter of this year. As of March 31, it held a total of 30.45% of Xiamen King Long's total shares. Previously, Fujian Motor Group held 29.99% of Xiamen King Long. • ZF starts the layout for the manufacturing of new chassis parts in Zhangjiagang Parts & In order to accelerate the layout of the Chinese market, ZF will build a new chassis parts plant in the Zhangjiagang Economic Development Zone. Previously, ZF had established three plants in Zhangjiagang for the production of parts for steering, braking and Components occupant safety systems. The new plant produces control arms, steering knuckles, tie rods and plastic components. Of which , the use Enterprise of lightweight materials will become one of the characteristics of the new plant. It is expected to be formally put into production in July 2020.

Information Consulting Center 13 Main Contents

1、Development Environment 2、New Energy Industry 3、ICV Industry 4、Development of Enterprises 5、List of New Models

6、Hotspot：Analysis on Trend of Passenger Veicle Market in April 2019 and Forecast List of New Models

Model Picture Price (Rmb 10,000) Profile

Dongfeng New The new Civic was launched on May 17. The new car is the mid-term remodeled version of the 10th 11.99～16.99 Civic generation Civic car. It is mainly designed to for sports style and upgrades the configuration.

WEY The WEY VV5 1.5T model was launched on May 15 and is equipped with a new 1.5T engine that 12.58～13.98 VV5 1.5T meets the requirements of the national stage-VI emission standard.

Changan EADO ET was launched on May 11. Before June 25, 2019, it can enjoy the comprehensive 16.29～17.29 Changan EADO ET subsidy for new energy vehicle. After subsidy, the price is Rmb 132,900 yuan to 142,900 yuan. The new car (Before Subsidy) has a cruising range of 405km under the NEDC mode.

The Qin Pro EV (super version)was launched on May 16th, and the range of the new model at NEDC Qin Pro EV (Super 14.99～19.99 situation was increased to 520km. In addition to the usual configuration, the Qin Pro EV super version is Version) also equipped with an L2 assisted driving system.

The F7x Sports version was launched on May 18. The Haval F7x series use 1.5T and 2.0T Haval F7X (Sport) 15.49 engines respectively. Haval F7X Sport uses the 2.0T engine and the 4WD system.

Information Consulting Center 15 Main Contents

1、Development Environment 2、New Energy Industry 3、ICV Industry 4、Development of Enterprises 5、List of New Models

6、Hotspot：Analysis on Trend of Passenger Veicle Market in April 2019 and Forecast 1、Analysis on Sales of Passenger Vehicle Market

 In April, the wholesales of passenger cars reached 1.55 million units, down 17.4% year-on-year and decreasing 19.4% from that of the previous month. They are both the largest declines in April in the past years.  The wholesales volume of MPVs in April encountered the larges decline, down more than 30%. In April, the wholesales of cars were 790,000 units, accounting for 51% of the total. It is still the largest market segment.

Trend of the Sales of Passenger Cars (Cars, MPVs, SUVs) in Past Five Years (10,000 units)

Whole Sale Growth Rate Remark In April, the inventory of passenger vehicle manufacturers increased 61,000 units, and dealer’s inventory fell by 4,000 units. They are led by the increase of dealer’s inventory in March and 1401 1402 1403 1404 1405 1406 1407 1408 1409 1410 1411 1412 1501 1502 1503 1504 1505 1506 1507 1508 1509 1510 1511 1512 1601 1602 1603 1604 1605 1606 1607 1608 1609 1610 1611 1612 1701 1702 1703 1704 1705 1706 1707 1708 1709 1710 1711 1712 1801 1802 1803 1804 1805 1806 1807 1808 1809 1810 1811 1812 1901 1902 1903 1904 the decrease of retail 2014 2015 2016 2017 2018 Jan-Apr 2019 sales and some other Total sales (10,000 units) 1,843 2,024 2,363 2,423 2,331 671 factors.They gave rise to the discretion of dealers Growth Rate 13.0% 9.8% 16.8% 2.5% -3.7% -14.8% in April. Sales of MPVs/Growth 191/48.1% 223/16.8% 254/13.9% 211/-16.9% 171/-16.3% 45/-25.1% Rate

SUV/Growth Rate 412/34.2% 630/52.9% 903/43.3% 1,030/14.1% 1005/-2.5% 294/-15.6%

Car/Growth 1,240/3.8% 1,170/-5.6% 1,206/3.1% 1,182/-2.0% 1155/-2.7% 332/-12.5%

Source:CPCA

Information Consulting Center 17 2、Analysis on Sales of Passenger Vehicles by JVs  In terms of sales volume, the sales of passenger cars in April declined by 20% from the that of previous month, and the markets for each different types of vehicles all showed the declines. Of which, the sales of the indigenous brand products decreased by more than 28% (the largest decreasing among the manufacturers).  In terms of the market shares, the declining of the sales of indigenous brand products was serious in April, and the sales of Sino-Europe, Sino-Japan, and Sino-USA JVs increased slightly. Among the Top 3 Sino-Japan JVs, the market shares of Toyota and Honda increased rapidly.

The Trend of Changes of Market Shares of Indigenous Passenger Trend of the Monthly Sales of Indigenous Passenger Vehicle Vehicle Manufacturers and Top 3 Sino-Japan JVs in Past Five Years Manufacturers （10,000 units） Sino-Korea JV Sino-US JV Sino-Europe JV Sino-Korea JV Sino-US JV Sino-Europe JV Sino-Japan JV Indigenous brand Sino-Japan JV Indigenous brand Remark 104 96.7 From January to April 33.3% 37.6% 40.8% 41.6% 41.4% 39.8% 94 88.2 2019, the passenger 82.7 82.2 vehicle market continued 84 77.2 78.0 to be sluggish. From the 74.3 17.2% 71.3 17.0% 74 perspective of domestic 16.3% 17.9% 19.0% 21.4% 66.1 market shares, the shares 64 61.0 26.1% 55.9 of Sino-Japan and Sino- 23.9% 22.5% 22.8% 50.3 50.6 Europe JVs increased 24.5% 25.4% 54 49.7 48.6 50.1 45.6 45.9 46.8 47.2 45.3 43.7 43.4 slightly; and the shares of 13.7% 13.0% 41.0 41.2 40.2 41.3 41.1 41.8 12.6% 44 37.4 Sino-USA, indigenous 12.6% 10.1% 9.0% 36.5 35.7 36.0 9.7% 32.9 manufacturers, and Sino- 8.5% 7.8% 5.2% 5.0% 4.3% 31.6 34 Korea JVs declined. 2014 2015 2016 2017 2018 201901-04 22.6 22.0 21.4 21.9 24 19.7 19.2 19.0 19.7 18.1 16.8 17.1 Honda 4.3% 4.9% 5.1% 5.9% 6.3% 7.4% 13.9 14.0 11.4 11.1 10.6 11.1 10.7 14 9.0 9.1 9.3 7.5 Toyota 5.2% 5.0% 4.5% 4.7% 5.6% 6.7% 4.9 6.2 6.0 Nissan 4.7% 4.4% 4.3% 4.6% 5.2% 5.3% 4 1805 1806 1807 1808 1809 1810 1811 1812 1901 1902 1903 1904 Source：CPCA

Information Consulting Center 18 3、Analysis on Sales of Passenger Vehicles by Brands

 In April, the ranking of Top 5 brands was consistent with that of last month. Volkswagen continued to the Top 1 on the list with sales exceeding 10,000 units comparing with that of Honda. BMW entered the Top 10 and Changan withdrew from the list.。  From January to April, the brands of the Top 10 did not change, only the rankings changed slightly (the 7th and 10th).

Sales of Top 10 Indigenous Passenger Vehicle Brands in April Sales of Top 10 Passenger Vehicle Brands from January to (unit) April 2019 (unit)

201804 201904 Market share 201801-04 201901-04 Market share Remark

VW VW 15.0% 950078 14.2% From January to April, 233005 Honda Honda 8.5% 492917 7.3% the Top 3 Sino-Japan JVs 132348 had kept high, with the 7.0% Toyota 6.7% Toyota 109057 449820 sales ranking remained in 6.0% 6.4% the top five. Geely Geely 431447 93788 5.3% 5.2% Nissan Nissan 347930 82513

Buick 4.1% Buick 4.4% 64368 297767 Haval Haval 58444 3.8% 264482 3.9%

Changan Hyundai 51023 3.3% 263138 3.9%

BMW 47339 3.1% Benz 197235 2.9%

Benz 46252 3.0% 187736 2.8%

Source :CPCA. Sales of VW brand products exclude those of Skoda and Audi.

Information Consulting Center 19 4、Analysis on Sales of Passenger Vehicle Enterprises

 In April, FAW-Volkswagen ranked the first, SAIC Volkswagen ranked the second place, SAIC-GM continued to rank the third, and remained the ninth position.  From January to April, the list of Top 10 did not change significantly. entered the Top 5 enterprises, while SAIC-GM-Wuling ranked the 7th position

Sales of Top 10 Passenger Vehicle Enterprises in April (unit) Sales of Top 10 Passenger Vehicle Enterprises from January to April 2019 (unit)

Market Share 201804 201904 201801-04 201901-04 Market Share Remark FAW-VW 9.7% 9.1% 150131 SAIC VW 611105 From January to April, SAIC-VW 143208 9.2% FAW-VW 8.7% 583619 the Sino-Germany JVs SAIC-GM 8.1% 8.2% continued to maintain 125504 SAIC-GM 552431 their leading positions. In Geely Auto 6.7% 7.0% 103908 Geely Auto 470496 the Top 10 enterprises, 4 Dongfeng 5.3% Dongfeng 5.2% enterprises are Chinese Nissan 82009 Nissan 345991 builders and 3 enterprises Great Walll 4.6% Great Wall 4.7% are Sino-Japan JVs Motor 70739 Motor 318085 GAC Honda 4.5% SAIC-GM- 4.7% 70258 Wuling 314294 FAW Changan 3.9% Toyota 65757 4.2% Automobile 263138 Dongfeng 3.8% Honda 62002 4.0% GAC Honda 257952 SAIC 3.6% Passenger… 60123 3.9% FAW Toyota 244696

Source :CPCA

Information Consulting Center 20 5、Analysis on Sales of New Energy Passenger Vehicles

 In April, the growth rate of the new energy passenger vehicle market slowed down, with sales of 92,000 vehicles, a year-on-year increase of 25.6%. Of which, the growth rate of the sales of PHEV exceeded 50%, and the market share also increased.  Among the Top 10 new energy passenger car companies, BYD ranked the first in April with absolute advantage. The sales of SAIC passenger vehicle exceeded 10,000 units and ranked the second. JAC and SAIC Volkswagen entered the Top 5.

Trend of Sales of New Energy Vehicles in Home in Past 5 Years Monthly Sales of New Energy Vehicle Enterprises in Home (10,000 units) (10,000 units) PHEV BEV PHEV Yoy Gap BEV Yoy Gap BYD SAIC Passenger Vehicle 4.00 Remark 1421.5% Geely Auto JAC 3.50 SAIC VW Auto In April, the new energy BJEV Great Wall Motor passenger vehicle market 3.00 Brilliance BMW Dongfeng Nissan entered the subsidy 80.5 transition period, and the 205.2% 227.7% wholesale sales volume 121.3% 109.3% 140.4% 96.2% 2.50 of new energy vehicles 257.4% 32.4% 81.6% 2.00 reached 92,000 units, a 28.5% 45.2% year-on-year increase of 1.50 25%. The growth rate declined. 44.3 1.00

26.7 21.2 0.50 25.5 2.9 9.6 10.6 0.00 1.7 6.2 8.0 7.8 2014 2015 2016 2017 2018 201901-04

Source:CPCA Note: The new energy vehicles above-mentioned include the plug-in hybrid vehicles and pure electric vehicles

Information Consulting Center 21 6、Analysis on Sales of New Energy Passenger Vehicles by Models  Among the BEVs sold in April, the BYD EV regained the top position in sales, the EV ranked the second position, and the Chery eQ ranked the fifth position.  Among the PHEVs sold in April, BYD Tang DM and Passat 1.4 PHEV continued to occupy the top two positions. The sales of ei6 increased greatly, ranking the third position.

Sales of Top 10 BEV Models in April (unit) Sales of Top 10 PHEV Models in April (unit)

6428 BYD Yuan EV BYD Tang DM 3833 Remark

EMGRAND EV 5225 Passat 1.4T PHEV 3767 From January to April, the cumulative sales of BAIC EU Series 4738 Roewe ei6 2819 new energy passenger vehicles totaled 346,000 BYD e5 4602 BMW 5 PHEV 2615 units, an increase of 82% year-on-year. Of which, PHEV Tiguan 1.4T 1455 Chery eQ 4129 PHEV the market share of BEV decreased slightly, while Roewe Ei5 4003 Corolla PHEV 1362 the sales of PHEVs maintained a substantial Ora R1 3505 Levin PHEV 1204 growth, and the joint venture models are JAC IEV 6E 3002 BYD Qin Pro DM 1164 gradually becoming the main force in PHEV Sylhpy BEV 2232 Roewe 950 PHEV 1088 segment.

XPENG IDENTY X 2200 Roewe eRX5 1072

Source:CPCA. Note: The new energy vehicles above-mentioned include the plug-in hybrid vehicles and pure electric vehicles.

Information Consulting Center 22 7、Characteristics of Passenger Vehicle Market and Prospect

Sino-Germany SUV of Sino- SUV of Sino- Car of Sino- Car of Sino- Car of Sino- Indigenous Car of Sino- Indigenos Indigenous JV SUV Korea JV Japan JV Japan JV Germany JV Korea JV brand MPV US JV brand Car brand SUV Sales, Growth, April in Cars Passenger of andShares Growth, Sales, 28.40% Sino-Germany JV 15.20% SUV、SUV of Sino- 8.00% 3.60% Korea JV、SUV of Sino-Japan JV＆Car Growth of Sino-Japan JV -6.10% -9.90% -13.70% Sales are growing 20 -21.30% -23.00% 19 -27.70% by Models Models by Car of Sino- Indigenous Indigenous Sino-Germany SUV of Sino- SUV of Sino- Car of Sino- Indigenous Car of Sino- Car of Sino- Germany JV brand SUV brand MPV JV SUV Korea JV Japan JV Japan JV brand car Korea JV US JV Indigenous brand Sales car ， SUV ， MPV (10,000 41.3 14.4 50.5 82.2 67.9 113.4 20.2 159.1 37.3 38.2 Negative growth units) across the board Market 6.3% 2.2% 7.7% 12.5% 10.3% 17.2% 3.1% 24.1% 5.7% 5.8% Share Source: CPCA, excluding the models with market shares below 2%.

Characteristics of Market from January to April 2019 Prospect of Auto Market in May

①The sales of Sino-Japan JVs (especially Toyota and Honda) increased. The inventory index of auto enterprises in April was 61.0%, increasing from that of last month ②The sales of indigenous enterprises declined greatly

55.3% 61.0% ③The sales of luxury brand products increased

Sales from Jan to March 2019 April 2019 Sales in April Growth Growth Apr Luxury 167360 2.1% 674753 4.5% The auto market faces heavy Leading JVs 788087 -14.4% 3271173 -9.0% pressure in May Indigenous 554211 -24.1% 2649849 -18.4%

Information Consulting Center 23