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MayorXuKuangdiMayorXuKuangdiofMunicipalGovernmentofShanghai(signiture)ShanghaiInternationalAutoTown：GoldenGatetotheVastChineseMarketBrochureforAutoMarketing/SalesHeadquartersOctober14,2001Contents¶China’sautoindustryandmarkettrendsChina’sboomingautomarketShanghai’soutstandingautoindustryHighPotentialShanghaiInternationalAutoTown(SIAT)¶SIATvalueproposition–firstchoiceasmarketingheadquartersforautomakersandpartsuppliersUniquemarketingenvironmentEconomicandefficientoperationconditionsPrivilegedgovernmentpolicysupport¶SIATinvestmentproceduresandcontactinformationLocatedinthemostadvancedareaofChina,…Nearthemostdevelopedautobaseofthecountry,…Withhighqualityprofessionalandtechnicaltalent,…Enjoyingsupportfromapragmaticandambitiousgovernment,…ExertinginfluenceontherestofthenationMapofShangahaiAmodernautotownwillemergeinWestShanghai.ItwillbeagoldengatetothevastChineseautomarket.China’sautoindustryandmarkettrends(GeneralBackgroundInformation)China’sautomobilemarketisgearingupforrapidgrowthInjustafewyearsfromnow,China’sautomobilemarketwillenjoyrapidandsustainedannualgrowthofover10percent.By2010,Chinaisexpectedtobeoneofthethreemajorautomobilemarketsintheworldwithanannualdemandof5.8millionunits.Exhibit1:EstimatedautomarketsalesandvolumeHugepotentialmarket:Incomingyears,automobilemanufacturinginChinawillgrowmuchfasterthantheworldaverage.Increasedpercapitaincomes,growingdemandforpassengerandfreighttransportation,improvedroads,policiesencouragingautomobilepurchases,andtariffchangesfollowingChina’saccessiontotheWTOwilldrivethisgrowth.Vastpotentialforvaluecreationbeyondcarmaking:Therewillbeenormouspotentialforserviceanddistributionbusinesses.Inthenext10years,thegrowingmarketfornewcarsandtheemergenceanddevelopmentofthesecond-handcarmarketwilldrivethedevelopmentofautomaintenance,credit,andinsurancebusinesses.ShanghaiisbestplacedtosupportthecomingautoboomAstheeconomic,financialandtransportationcenterofChina,Shanghaioffersallthefavorableconditionsforsupportingtheautoboom.Goingbytheestimatesofprofessionalorganizations,theboomwillstartintheChangjiangRiverDelta.Marketdemandherewillincreaseby10-20percentannuallyinthenext10years.Apartfromthishugelocalmarket,otherpartsofthecountrywillalsogeneratemassivedemand.Shanghaiiswellknownforbeingthemostdevelopedindustrialcenterandcommercialcity.ItsautomobilemanufacturingfoundationisratedoneofthebestinChina.ShanghaiwasthefirstinChinatointroducetheVolkswagen“Santana"carin1983.Afternearly20yearsofdevelopment,ShanghaihasbecomeamaturemanufacturingbaseproducingtheSantana,Passat,Buick,ShanghaiVolvobus,andDatongheavytruck.Shanghai’sautomobileoutputamountstoone-fifththatofthewholecountry.Shanghai’soveralldevelopmenthasattractedtheattentionoftheworld.Agreatmanyoutstandingprofessionalshavecometoworkandliveinthisbeautifulcity,whichenjoysthereputationof“apearlintheeast”,offeringafirst-ratetalentpool.Shanghai’svastmarketpotential,strongmanufacturingfoundation,developedmarket,andrichtalentbase,makeittheidealmarketingheadquartersforautomakersandpartssuppliers.Exhibit2:PicturesofautomobilesSIATunderconstructionSIATisacomprehensiveautocenterfocusingonautotradebutincludingR&D,logisticsservices,exhibitionandeducation,tourismandcarmaking.ItislocatedinAnting,atowninWestShanghai,atthejunctureofJiangsu,ZhejiangandShanghai.SIATwillbuildonShanghai’s...