ShanghaiInternationalAutoTown:GoldenGatetotheVastChineseMarketBrochureforAutoDealersOctober14,2001PhotoofmayorXuKuangdiSignatureofMayorXuContents¶China’sautoindustryandmarkettrendsChina’sboomingautomarketShanghai’soutstandingautoindustryHighpotentialShanghaiInternationalAutoTown(SIAT)¶SIAT-LocationofChoiceforautodealersAdistinctivepurchasingexperienceAnefficientbusinessenvironmentPreferentialgovernmentpolicysupportAttractivefinancialprospects¶SIATinvestmentapplicationprocedureandcontactinformation…LocatedinthemostadvancedareaofChina,…Nearthemostdevelopedautobaseofthecountry,…Withhighqualityprofessionalandtechnicaltalent,…Enjoyingsupportfromapragmaticandambitiousgovernment,…ExertinginfluenceontherestofthenationMapofShanghaiAmodernautotownwillemergeinWestShanghai.ItwillbeagoldengatetothevastChineseautomarket.China’sautoindustryandmarkettrends(Generalbackgroundinformation)China’sBoomingAutomobileMarketInjustafewyearsfromnow,China’sautomobilemarketwillenjoyrapidandsustainedannualgrowthofover10percent.By2010,Chinaisexpectedtobeoneofthethreemajorautomobilemarketsintheworld.Annualdemandforcarswillriseto5.8millionunits.Exhibit1:EstimatedautomarketsalesandvolumeHugepotentialmarket:Incomingyears,China’sautomobileindustrywillgrowmuchfasterthantheworldaverage.Increasedpercapitaincomes,growingdemandforpassengerandfreighttransportation,improvedroads,policiesencouragingautomobilepurchases,andtariffchangesfollowingChina’saccessiontotheWTOwilldrivethisgrowth.Bigopportunitiestocreatevaluebeyondautoindustry:Therewillbeenormouspotentialforserviceanddistributionbusinesses.Inthenext10years,thegrowingmarketfornewcarsandtheemergenceanddevelopmentoftheusedcarmarketwillsustainprofitgrowthof10-15percentayearinautomobiledistribution,anddrivethedevelopmentofmaintenance,credit,andinsurancebusinesses.Shanghai—BestPlacedtoSupporttheComingAutoBoomAstheeconomic,financialandcommunicationcenterofChina,Shanghaioffersallthefavorableconditionsforsupportingthecomingautoboom.Goingbytheestimatesofprofessionalorganizations,theboominChina’sautoindustrywilltakeplaceintheChangjiangRiverDelta.Marketdemandherewillincreaseby10-20percentannuallyinthenext10years.Apartfromthishugelocalmarket,otherpartsofthecountrywillalsogeneratemassivedemand.Shanghai’sautomobilemanufacturingfoundationisratedoneofthebestinChina.ShanghaiwasthefirstinChinatointroducetheVolkswagen“Santana"carin1983.Afternearly20yearsofdevelopment,ShanghaihasbecomeamaturemanufacturingbaseproducingtheSantana,Passat,Buick,ShanghaiVolvobus,andDatongheavytruck.Shanghai’sautomobileoutputamountstoone-fifththatofthewholecountry.Moreover,Shanghai’soveralldevelopmenthasattractedtheattentionoftheworld.Agreatmanyoutstandingprofessionalshavecometoworkandliveinthisbeautifulcity,whichenjoysthereputationof“apearlintheEast”.Asaresult,Shanghaiboastsofafirst-ratetalentpool.Inshort,Shanghai’svastmarketpotential,strongmanufacturingfoundation,developedmarket,richtalentbase,economicpowerandfavorablegeographicallocationmakeitthefirstchoiceasChina’sautoandtransportationcenter.Exhibit2:PicturesofautomobilesHighPotentialShanghaiInternationalAutoTownSIATisacomprehensiveautocenterfocusingonautotradebutincludingR&D,logisticsservices,exhibitionandeducation,tourismandcarmaking.ItislocatedinAnting,atowninWestShanghai,atthejunctureofJiangsu,Zhejianga...