DOC ID Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
“Chinese products have always been
regarded as low quality and unsafe” Printed
1 DOC ID Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Which was the safest car tested
in 2013 by Euro NCAP? Printed
2 DOC ID Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Printed
3 DOC ID Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Printed
!"#$%#& '()*#$+,$-"+,).
4 DOC ID
Qoros Auto ownership Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
A 50:50 joint venture of Israel Corporation and Chery Automobile
Israel Corporation Ltd. Chery Automobile
A global industrial holding Established in 1997, Chery is company active mainly in the one of Chinas largest
chemicals, energy, automotive, independent car makers Printed
and shipping industries and the largest exporter
5 DOC ID
The irresistible opportunity Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
To start a car company from scratch is a challenge but also an opportunity – we took the opportunity.
Printed
We looked at every aspect of today’s auto companies. We identified the best of what works well, innovated new solutions and processes for what could be improved. 6 DOC ID
An international car company headquartered in China Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
WE ARE A NEW KIND OF CAR COMPANY
A company not satisfied with the status quo Printed
A company built from the ground up to take on a new approach A company with a single vision to provide our drivers with more of what they need and less of what they don’t A company with determination and belief to create an overall better driving experience… and
beyond 7 DOC ID
Our founding principle Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
The world doesn’t need another car company. BUT IT DOES NEED A DIFFERENT ONE.
Printed
8
8 DOC ID
Extensive consumer research Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
50,000+ consumers interviewed in China and Europe for product and feature validation
Printed
3,000 hours 1000 hours 120+ focus group video taken with driving with consumers discussions for cameras in cars to for competitor consumer insight understand consumer evaluation calibration 160+ ad hoc studies for pain points and needs consumer insight
9 DOC ID Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
How did Qoros get here?
Printed
10 DOC ID
Integrating a strong international leadership team Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Experienced automotive specialists from around the world represents 17% of our staff base, leading the best local Chinese talent
State-of-the-art Printed technology and international best practice
Passionate about building a new automotive brand 11 DOC ID
Establishing international facilities Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Our operational hub is in the Changshu International Financial Center Production in Shanghai Munich Design
Shanghai, South Harbour
Test car support center Printed
Graz Shanghai, Lujiazui Engineering / Design Operating center / Engineering
12 DOC ID
Constructing an all-new plant Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
An all-new, highly-efficient, environmentally-sustainable plant 80km from Shanghai
Initial annual capacity is Printed 150,000, which can easily rise to 250,000, and 350,000 with expansion of the facility
13 DOC ID
Plant video short version ( 70 seconds) Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Printed
14 DOC ID Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Our positioning
Printed
15 DOC ID
How we are different Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
WE BUILD BETTER CARS FOR THE REAL LIVES OF THE MODERN METROPOLITAN PEOPLE.
Better because we are building cars that are designed to fit the modern Printed
metropolitan lifestyle. Fast moving, progressive and constantly changing.
16 DOC ID
China’s car market continues rapid growth Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
China passenger car sales Jan 2012 data All platforms and body sizes (excl. vans), million units Dec 2013 data 25 China surpassed the US (~10 mn) to Previous forecast 20 become the No. 1 single-country proved accurate passenger car market in 2010
15 Printed
10 China will even exceed North America (~17 mn) and Europe 5 (~20 mn) to become the No. 1 area market by 2020
0 2003 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 2020
Source: IHS Automotive Light Vehicle Sales Forecast (Greater China, Sept-13); KPMG; McKinsey 17 DOC ID
C-segment naturally represents the first target for Qoros Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Passenger Vehicle Market by Segment, 2013
[Share by 2013 sales volume]
100% B-CAR 10% 9% 24% 31% 29%
C-CAR 43% 21% 24%
19% Printed 9% 3% D-CAR 15% 9% 8% 17% C-SUV 11% 37% 36% Others 21% 26%
China European Russia Middle East Union (GCC 6)
Source: IHS Automotive Dec. 2013 18 DOC ID
Potential growth remains huge Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
2013 Penetration Rate1 (Per 1000 population)
US 739
Japan 584
Germany 567
UK 560 Printed Russia 295
Brazil 187
China 89
India 20
1 Including light commercial vehicle but no heavy duty vehicle Source: IHS Automotive, CPCA, CAAM 19 DOC ID
We started with China’s largest segment Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
China car market volume by segment Million cars
15.8 Total 24.2 0.8 A Mini 3.4 B Subcompact 0.5 2.0 Qoros focus
12.7 Printed C Compact
8.7 D Mid-Size E Full-Size 5.5 0.9 3.6 1.7 Sports 0.1 0.1 2013 2020 Source: IHS Automotive 20 DOC ID
Brand Preference Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time The higher the segment, the higher the share of European and U.S. brands (line-up in China based on their European products). And they are gaining popularity continuously, with share in the C-segment about 40 percent, up 5 percent over the last three years
Share by Brand Origin in China Passenger Vehicle Market
Share sales volume, 2012
100% 7% EU & U.S. 26% 23% Japan & Korea 40% 48% Printed 39% 91% 29% China 70% 29%
35% 31% 23% 8% A B C D E
1 U.S. brand C-cars in China are introduced from European units, e.g. Ford Focus, Buick Excelle GT/XT(Opel Astra) Source: China Passenger Car Association (CPCA) 21 DOC ID
China is becoming the world’s largest premium car market Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time Global premium car sales ranking, thousands units McKinsey IHS Global Impact CAGR, Percent 2002 2012e 2020e 2002-12e 2012-20e 1 1,670 1,700 3,000 36 12 2 1,017 1,246 2,327 0 4 3 436 947 1,067 -1 2 4 354 530 592 2 1
5 192 250 350 -3 4 Printed
6 162 228 295 31 5 7 147 202 282 2 3 8 108 186 191 2 0 9 104 159 178 -3 5 10 . 92 118 169 4 1 14 57
Source: IHS Global Insight; McKinsey M-view; McKinsey China Premium Car Research (2012) 22 DOC ID
Buyers are open to considering a premium car from a Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time local Chinese OEM
40 percent of buyers claim that they are open to considering a premium car from a local … but they only expect local OEMs to be ready Chinese OEM… with such a car after 2020 “Would you choose a premium car (RMB 400K “How soon do you think a Chinese OEM will be +) from a Chinese brand (non-JV)?” able to produce a premium car that is recognized worldwide (RMB 400K+)?”
1-2 years 1% Printed 41% Yes 2-5 years 24%
5-10 years 41% 59% No 10-20 years 18%
Never 16%
Source: McKinsey China Premium Car Research (2012) 23 DOC ID
Market – New car market potential Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time Despite being one of the largest markets, vehicle penetration rate is still much lower than that of the mature markets, and far from saturation
Vehicle* penetration vs. real GDP growth
[units/1000 capita]
Printed
Vehicle Penetration Vehicle
Real GDP [k USD/capita] Source: IHS Automotive, China state information center, World Bank *: including light commercial vehicle but no heavy duty vehicle. 24 DOC ID
Market Size – Market potential Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time After ten-year development, China is still the most attractive auto market with the largest market size, highest growth rate and lowest concentration among key markets
Key Markets Growth Rate and Market Size*
2013 Market Size [mil. unit] Avg. 16 China 14
USA 12
10 Printed West Europe* 8
6
4 Japan Germany Brazil India Russia 2 East Europe* GCC6 0 ’09-’13 CAGR -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 [%]
*: including car/SUV/MPV, Russia excluded in East Europe, Germany excluded in West Europe. Source: IHS Automotive 2013M07 25 DOC ID Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
The product
Printed
26 DOC ID
Attributes Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
RELENTLESS PERSUIT ENDURING BEYOND OF QUALITY ELEGANCE DRIVING
•! Competence •! Sophistication •! Buying experience •! High standards •! Dynamism •! Balance •! Single-minded simplicity •! Connectivity Printed
27 DOC ID
Relentless Pursuit of Quality Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
We made history - the first vehicle developed in China to receive Euro NCAP 5-star rating and the safest of all cars tested in 2013!
An important indicator of competence, high
standards and quality Printed
28 DOC ID
Testing Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Powertrain calibration and HVAC winter test vehicle dynamics winter test Rovaniemi, Finland Arvidsjaur, Sweden Endurance test and Vehicle dynamics HVAC winter test winter test Yakeshi, China Vehicle dynamics Heihe, China
and durability test Powertrain calibration summer Nardo, Italy Misuse and Aerodynamics, powertrain, test and high altitude testing durability tests cooling / HVAC durability tests Idiada / Granada, Spain Xiangyang, China Shanghai, China
Durability and Printed electrical tests Vehicle dynamics Chassis misuse
Graz, Austria HVAC summer test homologation test and corrosion test Idiada, Spain Wuhu, China Hainan, China
HVAC summer test Mount Isa, Australia Winter test
Summer test Powertrain cooling summer test HVAC, powertrain Upington, South Africa and ESC testing Other performance test New Zealand 29 DOC ID
Testing Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Powertrain calibration and HVAC winter test vehicle dynamics winter test Rovaniemi, Finland Arvidsjaur, Sweden Endurance test and Vehicle dynamics HVAC winter test winter test Yakeshi, China Vehicle dynamics Heihe, China
and durability test Powertrain calibration summer Nardo, Italy Misuse and Aerodynamics, powertrain, test and high altitude testing durability tests cooling / HVAC durability tests Idiada / Granada, Spain Xiangyang, China Shanghai, China
Durability and Printed electrical tests Vehicle dynamics Chassis misuse
Graz, Austria HVAC summer test homologation test and corrosion test Idiada, Spain Wuhu, China Hainan, China
HVAC summer test Mount Isa, Australia Winter test
Summer test Powertrain cooling summer test HVAC, powertrain Upington, South Africa and ESC testing Other performance test New Zealand 30 DOC ID
Enduring elegance Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Modern European- influenced design
Simply elegant
Sophisticated Printed
Dynamic
31 DOC ID
Enduring elegance Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Modern European- influenced design
Simply elegant
Sophisticated Printed
Dynamic
32 DOC ID
Enduring elegance Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Modern European- influenced design
Simply elegant
Sophisticated Printed
Dynamic
33 DOC ID
Enduring elegance Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Modern European- influenced design
Simply elegant
Sophisticated Printed
Dynamic
34 DOC ID
Evolutionary, dynamic design for our second car Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Evolved design for distinctiveness
Clear consistency of
signature Qoros design
cues Printed
Prominent face
Tall rear for forward- leaning wedge profile
35 DOC ID
Evolutionary, dynamic design for our second car Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Evolved design for distinctiveness
Clear consistency of
signature Qoros design
cues Printed
Prominent face
Tall rear for forward- leaning wedge profile
36 DOC ID
Beyond driving Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
A New Premium.
LED lamps create a clear Standard 8-inch Generous interior space
visual identity, adds to the touchscreen is simple and thanks to our innovative Printed
stunning design, and offers intuitive HMI with immediate modular platform which is top lighting performance. access to key functions with one of the largest in the no difficult menus to learn. compact segment
37 DOC ID Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Printed
Qoros MMH & QorosQloud
38 DOC ID Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
!((&)!*#&'*++&,,'
!"#$!#!%&' Printed
"-'.$##-",' *")'(&"$,' #-'/&*0"'
39 12' DOC ID
Qoros HMI Interface and Logic Design Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Printed
��� DOC ID
QorosQloud_Connected Eco-system Created for Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time Customers
Printed
QorosQloud connects people, the car, and the digital world.
It allows the drivers to be guided, to be in control and to share their driving experiences. DOC ID Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
1 Trillion Connected Devices
Printed
DOC ID Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Analyze Monitor Improve
Printed
DOC ID
QorosQloud enhances service integration Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Printed
DOC ID
Cloud-enhanced Navigation Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Plan and adjust the trip in advance and save it Printed
When you get into the car, the planned route is already Departure alert and downloaded guidance to the car on the phone DOC ID
!"##$%&'$()*+',&-+)$$ Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time ./'0./'0$1'0223'04$%&'$5+6&-+)4$7&8)90)&)60$:9&932$1'0223'04$%&'$5+6&-+)4$7&8)90)&)60$:9&932
Printed
DOC ID
Use, Maintain and Repair the car Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Printed
User Manual: Maintenance: Digital and customized user manual Pre-diagnosis on QorosQloud portal. On QorosQloud portal and mobile app Maintenance booking on both portal and mobile app DOC ID
Monitor, Analyze and Improve driving behavior Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Printed
Monitor driving behavior and Share DOC ID
Customer Services and Roadside Assistance handy Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Printed
QorosQloud app allows instant communication with customer services and roadside assistance DOC ID
QorosQloud creates WOM through sharing Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Printed
Share with other Qoros owners or with family and friends DOC ID
;28)<$=+'+2=>+3?$82$*3)$$ Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Printed
Earn QorosQloud badges Share and compete with your friends! DOC ID
Customer Evaluation on User Interface Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Web :24'
MMH :84'
App 884' Printed
34' 534' 634' 134' 734' 834' 934' :34' ;34'
More than 75% “like” Web/MMH design
!"#"$%&'()*+$,*-*."/)%$01-21*$%'(3*4$ DOC ID
Customer Evaluation on QorosQloud Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Badges Car Info Eco Drive
85% Usage rate 80% Usage rate Satisfaction 67% Satisfaction 71%
Printed
89% Usage rate Satisfaction 77%
More than 90% of our customers would recommend QorosQloud to friends and family DOC ID
=+'+2=>+3?$:/290,$@A0'A80B Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Telcom provider
Printed Infotainment Modem rd
QorosQloud- 3 Party Content based Backend (Tbc)
Insurers DOC ID
Dealerships – typical Chinese dealerships Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Printed
55 DOC ID
Qoros dealerships – a unique customer experience Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
130 dealers signed up
Dealer openings are on track
100 dealers across China
by end of 2014 Printed
Enjoyable, effortless Open, uncluttered Advanced technology Dedicated configuration, multimedia and interactive experience zones
56
P R O P O S A L D E L I V E R Y P R O D U C T
P R O D U C T D E L I V E R Y P R O P O S A L
I. P roduct D osal eolipvery P ro y P r posal Scope ver el io f t his p rop -site with Qoros over the last 4 months. This has ct D osal odu We have completedosal a thorough Discovery process on r rop at their dealerships. : DOC ID I. P providedis p us an opportunity to understand the existing -systems,site with data Qoros structures over the and last resources 4 months. required This has to f t h n for Qoros e odeploy the S utio op ales C usto S ol Sc meeyr J ou Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time Qoros dealerships – a uniqueu rncustomerrney S olution for experience Qoros er J o at their dealerships. We have completed a thoroughtom Discovery process on the following software components C us includes provided Tous anclarify,a lopportunityes the Sales to Customer understand Journey the existing Solution systems, data structures and resources. required to n deploy the Si. includes the following software components lutio Middleware B u y S o s for Qoros Dealerships to manage the Sales System. urne : ii. iPad M Qoros Dealerships to manage the Sales System. r J o ini uAs pforp for the Staff in dealerships to use with customers. ome iii. re B Sales Sales Staff in dealerships to use with customersust . To clarify, the iSalesPleawd aCustomerA pp to be Journey used as Solution Spec Pods in front of every car at thele dealerships C Simultaneously engineered retailidd pp for the Pods in front of every cara at the dealership M ini A i. d M iPa to be used as Spec . facilities & processes: ii.For purposes A pofp this document we refer to this entire system as: S iPad (iii.ve rsio • Logical journey through storen 1that.0) ales ! Qoros will C beus tprovidedomer J o atu the end of this Phase. rney S olution encourages exploration ) ThisFor documentpurposes 1 . 0of explains this document in detail we the refer tangible to this deliverables entire system that as: Qoros S will be provided at the end of this Phase. rsion •! Transparent transactions ( ve • Interactive service
! • Simple contracts This document explains in detail the tangible deliverables that !
Printed Integrated Qoros/Vehicle/Dealer/Digital
Retail Systems & Applications: •! Connected vehicle •! Specification Pod •! Vehicle Configurator •! Sales ambassadors App •! Service Ambassadors App
57
3 of 9 page
page 3 of 9 DOC ID
Dealer network focuses on major urban areas with 35 Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time dealerships open to date 3 Harbin
Changchun
,/* 5 Wulumuqi " Hohhot Shenyang Beijing
. Tianjin #+ Taiyuan Shijiazhuang � ( % Yinchuan Jinan By 2014 YE, 100+ PoS
Xining Xian will be launched, ' 1 Lanzhou Zhengzhou covering ~80 cities Nanjing Hefei Printed Shanghai - $) Lhasa Wuhan
Chengdu 0 Chongqing Hangzhou 2 Nanchang & Changsha Fuzhou
! Guiyang Guangzhou City Coverage by 2013 YE 4 Kunming City Coverage targeted by 2014 Q1 % City Coverage targeted by 2014 Q2 Nanning City Coverage targeted by 2014 Q3 City Coverage targeted by 2014 Q4 58 DOC ID Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
35 dealerships open Many more under construction
Printed
59 DOC ID Last Modified 1/15/2014 11:28 AM Jerusalem Standard Time
Printed
!"#$%#& '()*#$+,$-"+,).
60