Webinar: Automechanika Shanghai 2014 21st October 2014
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED SMMT, the ‘S’ symbol and the ‘Driving the motor industry’ brandline are trademarks of SMMT Ltd Agenda : CBBC-SMMT Mission Briefing
• CBBC: - China Auto Industry update, - Being prepared to exhibit at Chinese Trade Shows
• SMMT: Mission Programme update
• Q&A
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 2 CBBC – SMMT MISSION BRIEFING
STEWART FERGUSON / HEAD OF RESEARCH ZHANG JUNCHAO / ASSISTANT DIRECTOR RESEARCH
21st OCTOBER 2014 / SHANGHAI, LONDON
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AGENDA
1. China Auto Industry – overview 2. China Auto Industry – latest news 3. Shanghai – getting about, getting on 4. Being Prepared – presentation tips 5. The China-Britain Business Council
www.cbbc.org 建议 Advice Ι 支持 Support Ι 网络 Networking SMMT MISSION BRIEFING – OVERVIEW
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August 2014 Production of passenger cars 1.48 million (up 6.7% yoy) Sales of passenger cars 1.47 million (up 8.5% yoy)
January – August 2014 Production of passenger cars 12.66 million (up 11.6% yoy) Sales of passenger cars 12.46 million (up 10.7% yoy) SUVs production up 35%, sales up 34.5% MPV production up 58.7%, sales up 54.1%
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Models Manufacturers Sales Wuling Hongguang SAIC-GM-Wuling 371649 Volkswagen Lavida, sedan version Shanghai-Volkswagen 203008 Volkswagen New Santana Shanghai-Volkswagen 161952 JV with foreign partners Volkswagen Sagitar FAW-Volkswagen 155393 produce and sell 76% of Volkswagen Jetta FAW-Volkswagen 152621 all cars. Buick Excelle Shanghai-GM 147404 Nissan Sylphy Dongfeng-Nissan 145214 VW 22.3% Haval H6 Great Wall 143119 Volkswagen Passat Shanghai-Volkswagen 135954 GM 14.7% Volkswagen Tiguan Shanghai-Volkswagen 127549 Hyundai 6.7% Top 10 selling vehicles First Half 2014 Nissan 6.0% Toyota 5.2% Ford 4.9% www.cbbc.org 建议 Advice Ι 支持 Support Ι 网络 Networking SMMT MISSION BRIEFING – LATEST NEWS LATEST CHINA NEWS
Foreign auto parts distributors / brands fined for price fixing – greed or over-regulation
Push for electric vehicles – electric or hybrid? the role out of subsidies? domestic or foreign?
www.cbbc.org 建议 Advice Ι 支持 Support Ι 网络 Networking SMMT MISSION BRIEFING – LATEST NEWS CHINA IN THE UK Chinese brands are slow movers into the UK market. This is due to several factors (mainly: Chinese financial regulation; technology lag; lack of historic partnership). These factors are reducing in their impact as barriers to greater Chinese involvement in the UK market. R&D – Changan, SAIC, Lifan, Geely Manufacture – SAIC, Geely Distribution – Chery, Wanfeng, Kinglong
www.cbbc.org 建议 Advice Ι 支持 Support Ι 网络 Networking SMMT MISSION BRIEFING – LATEST NEWS THE UK IN CHINA The UK has been criticised for being slow to move into the Chinese market. This is due to several factors (mainly: clarity of demand; intellectual property concerns; lack of critical mass). Tier 1 suppliers are becoming more confident in the market to establish supply chain or assembly locally. Sales and aftersales support in high demand. R&D – Ricardo, MIRA Manufacture – JLR, GKN Distribution – Unipart, GKN, Mini, RR, Aston Martin, Mclaren, Bentley, Caterham, Morgan www.cbbc.org 建议 Advice Ι 支持 Support Ι 网络 Networking SMMT MISSION BRIEFING – SHANGHAI
The Shanghai New International Expo Centre (SNIEC) is located in Pudong District, Shanghai
Metro Line 2, exit LongYang Station (10 minute walk) or change to Metro Line 7, exit HuaMu Station (2 minute walk)
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Shanghai Metro system is quick, clean and efficient to get around town.
Taxis are good to travel around town but queues are long at exhibitions and when it rains.
Do not expect taxi drivers to speak English. Take addresses (in Chinese) of where you want to go.
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Shanghai food is very suitable for a Western palate – not too oily, not too spicy, not to sweet.
Western, European and other World cuisine restaurant choices are widespread.
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Shanghai is a modern, cosmopolitan city. It’s economy is known for financial and professional services. Many global companies have their China or Asia Pacific HQ in Shanghai. Shanghai has it’s own history and culture within China. Shanghai was never a British city. You will see “golden” London Taxis in Shanghai.
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WHY CHINA? Double Digit GDP Growth 1980-2010 Second Largest Economy in the World (1st by PPP) 1.35 Billion People Wealthy Middle Class Chinese On-Line Community Urbanisation Challenges Environmental Challenges Education Challenges Energy Challenges “Moving Up The Supply Chain” “Going Global”
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WHY CHINA?
www.cbbc.org 建议 Advice Ι 支持 Support Ι 网络 Networking SMMT MISSION BRIEFING – BEING PREPARED Chinese Clients What to Work With: Quality Companies with a Intelligence Quality Intelligence
Quality Design Intelligent Design / Brand Quality Brand / Materials / Experience / Quality Materials Systems / Staff / Service Quality Experience Quality Systems Intelligent Approach Quality Staff Intelligent Understanding Quality Service Intelligent Negotiation Quality Intellect www.cbbc.org 建议 Advice Ι 支持 Support Ι 网络 Networking SMMT MISSION BRIEFING – BEING PREPARED
WHAT IS THIS?
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WHAT DOES IT MEAN?
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CHECK LIST Pricing – freight, duties, compliance, finance, service
Market Demand – size, distribution, competition
What Do You Want?
How Are You Going To Communicate?
www.cbbc.org 建议 Advice Ι 支持 Support Ι 网络 Networking SMMT MISSION BRIEFING – BEING PREPARED Top Tips 1. Have business cards, company name, company and product literature translated 2. Link translated documents on your website 3. Create Skype and Wechat accounts 4. Have your own company profile in Chinese (example: ‘we are an [X type] of company who make [Y] for [Z type] of companies’) 5. Have a mission statement for the show / China (example: ‘we want to meet [types] of companies to discuss [types] of cooperation’) 6. Express your quality and intelligence 7. Name drop – your clients, your supply chain, your technology, your associates 8. Ask open questions www.cbbc.org 建议 Advice Ι 支持 Support Ι 网络 Networking SMMT MISSION BRIEFING – CBBC The China-Britain Business Council •60 Years in China – as a membership organisation promoting UK trading strengths to a the market, and guiding UK companies with market entry advice •13 offices in China in the key markets for UK business •Automotive sector specialists in UK and China
•We advise on what you want to know and what you need to know •We keep you informed on market conditions and market opportunities •We are the trusted link between China and you www.cbbc.org 建议 Advice Ι 支持 Support Ι 网络 Networking
SMMT MISSION BRIEFING – CBBC The China-Britain Business Council •UKTI delivery partner for China •SMMT support partner for China
•UKTI market research delivery – OMIS. Tailored packages of delivery for individual companies to take forward a China plan – matchmaking, introductions, market identification and investigation. •CBBC Launchpad. A soft landing facility, with 16 years of proven success, for UK companies entering into the market.
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谢谢
STEWART FERGUSON / [email protected] ZHANG JUNCHAO / [email protected]
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• 8th Dec.: 9:00-18:00 - Set-up day
• 8th Dec. : 17:00-21:00 - In-country Briefing & Welcome Dinner
• 9th-12th Dec. : 9:00-17:00 - Exhibition (Interpreters & meeting room available)
• 12th Dec.: 15.30-21:00 - dismantling period
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 25 Venue: Shanghai New International Expo Centre 上海新国际博览中心（SNIEC） 2345 Long Yang Road Pudong Area Shanghai 201204 中国上海浦东新区龙阳路2345号 邮编:201204
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 26
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 27 CBBC Shanghai Office Unit 1708 - No. 968 West Beijing Road
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 28 Q&A Session
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED SMMT, the ‘S’ symbol and the ‘Driving the motor industry’ brandline are trademarks of SMMT Ltd