#1ar AC April 27, 2023 Shanghai, China Since 1915 AMCHAM SHANGHAI State of China's Automotive Market Monthly Automotive Committee Update Recap of Shanghai Auto Show 2023 Event Presentation by Bill Russo, Founder & CEO, Automobility Limited and Chairman, AmCham Shanghai Automotive Committee Connect with Bill Russo:#2State of China's Auto Industry BYD'S NEV Dominance Headline News Inventory Problem of ICE#3STATE OF CHINA'S AUTO INDUSTRY You can access our monthly China Auto Market newsletter highlighting recent industry developments State of China's Auto Market April 2023 Steep Discounting Continues as Industry Faces Multiple Headwinds New Energy Vehicles are the only sustained growth category Comments from Bill Russo, Founder & CEO of Automobility Ltd. We are looking forward to welcoming international visitors to Auto Shanghai, which begins with Press Day events on April 18. The beauty of the China auto shows, which I have attended every year since 2004 (except 2022 due to lockdowns), are that they offer a truly unique opportunity to see the global carmakers - foreign and local Chinese brands - all in one place. The China market is currently in a period of historic transition to new energy vehicles, the likes of which is unparalleled elsewhere on the planet. Simply put, the market is very different in 2023 from the last time many international visitors attended Auto Shanghai in 2019: - In 2019, 1.2 million NEVS were sold out of 25.8 million (4.7%). - In 2022, 6.9 million NEVS were sold out of 26.9 million (25.6%). Annual sales of gasoline (ICE) powered vehicles declined by 4.6 million units since the last year international visitors visited an auto show in China. This transition is favorable to very few legacy carmakers who must make a statement in order to get back in the new game. We will see what they have to say very soon. Until then, lets have a look at the chessboard. M A Link to February News Summary (VPN required in China): Follow us for periodic updates Automobility Ltd First Quarter Vehicle Sales Down 6.7% 6.1 million cars and trucks were sold in the first quarter of 2023, a decline of 6.7%. This decline was not a surprise, as many consumers took advantage in 2022 of tax incentives and purchase subsidies which expired at year end. Year-over-year New Energy Vehicle sales increased 27.2%, while sales of gasoline-powered vehicles declined 12.7% versus the first quarter of 2022. 3#4STATE OF CHINA'S AUTO INDUSTRY A weak opening in 2023 was expected after expiry of stimulus, which was not completely offset by aggressive pricing moves 30 30 CV PV China Auto Sales (2015 - 3/2023) YoY Change ■Total: -6.7% ■CV: -2.9% ■ PV: -7.3% ■NEV: +27.2% / 339k units ■ICE: -12.7% / -650k units -2,8% (million units) -8,2% +7,1% +2,2% -1,8% +3,8% 28,9 28,0 28,1 26,9 26,3 4,2 25,8 3,7 4,4 25,3 25 24,6 3,3 23,5 4,3 4,8 3,5 5,1 3,8 20 20 15 24,4 24,7 23,7 23,6 21,4 21,5 21,1 20,2 10 19,7 5 ◉ ☐ 6,1 5,1 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023.1-3 Comments Overall sales were down ~6.7% in Q1 year- over-year Weaker sales in early 2023 were anticipated due to several factors: - Pull-ahead of sales - Expiration of subsidies. YOY comparisons in Q22023 will show favorability due to extraordinary events in 2022 Q12023 NEV sales are up 27.2%, YOY and gasoline-powered vehicles sales were down 12.7% Source: CAAM, Automobility analysis Automobility Ltd 4#5STATE OF CHINA'S AUTO INDUSTRY NEV share of new car sales increased slightly in Q1 2023 China NEV Annual Sales (2012 - 3/2023) (%) Share of NEV NEV Sales 35 (million units) 6.89 7.0 6.5 GN NW 30 25.6% 26.1% 6.0 25 20 5.5 5.0 4.5 15 13.4% 4.0 3.52 10 3.5 5.3% 4.7% 5.4% 5 3.2% 3.0 1.6% 2.1% 0.1% 0.1% 0.4% 2.5 0 2.0 1.59 -5 1.26 1.37 1.21 1.5 0.78 1.0 -10 0.51 0.33 0.5 0.01 0.02 0.08 -15 0.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023.1-3 NEV share in Q1 of 2022 was 21.7%, and it was 8.2% in 2021. Source: CAAM, Automobility analysis Automobility Ltd 5 LO#6STATE OF CHINA'S AUTO INDUSTRY Recovery of sales momentum in March was fueled by heavy discounting (000' units) YoY Change 3,000 Monthly Retail Sales 2,786 China Vehicle Monthly Sales (Oct. 2021 Mar. 2023) - (%) 100 2,522 2,500 2,333 2,000 2,531 2,610 2,556 2,502 2,505 2,420 2,383 2,328 2,234 2,451 50 50 1,862 1,737 19.4% 1,500 -1.9% 1.1% -9.3% -9.0% 1,000 29.8% 32.5% 24.2% 26.3% 7.4% 1,976 1,649 13.8% 9.7% 0 1,181 -11.6% -12.5% -7.7% -8.3% -34.8% -50 500 -47.6% -100 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Comments "Hangover effect" from post-lockdown stimulus still weighs on ICE sales, which were relatively flat year-over-year New Energy Vehicles are still the main source of growth, even after the elimination of purchase subsidies Source: CAAM, Automobility analysis Automobility Ltd CO 6#7STATE OF CHINA'S AUTO INDUSTRY A rebound in CV sales along with NEV expansion and heavy discounting contributed to the March sales recovery China Passenger Vehicle Monthly Sales YoY Change ('000 units) Monthly Retail Sales - (Oct. 2021 Mar. 2023) (%) 2,422 2,500 2,192 2,098 2,222 2,174 2,125 2,332 2,231 2,265 100 2,075 2,007 2,017 2,000 1,864 1,500 1,487 28.6% 1,623 41.6% 40.2% 36.9% 33.2% 1,653 1,469 50 11.2% 1,000 -4.9% -4.6% 2.0% 2.6% -0.5% 965 11.2% 8.2% -1.4% -5.3% -6.5% 0 -30.0% 500 -43.4% ('000 units) YoY Change Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar China Commercial Vehicle Monthly Sales -50 (%) Monthly Retail Sales (Oct. 2021 Mar. 2023) 2,500 100 2,000 29.6% 50 17.3% 1,500 4.5% -29.7%-30.1% -20.2% -24.9% -16.4% -21.2% -12.0% -16.3% -23.3% -20.1% 0 1,000 500- 326 330 364 344 -43.2% 370 -37.0% 250 -50.4% -60.6% 216 239 281 246 258 -47.7% 434 -50 279 273 253 291 324 180 0 Oct Nov Dec Jan Feb March April May June Jul Aug Sep Oct Nov Dec Jan Feb Mar -100 CV segment had its best month since 2021 - a clear sign of recovery from its stimulus hangover PV sales growth was paid for with a price war, and is almost entirely from new energy vehicles Source: CAAM, Automobility analysis Automobility Ltd 7#8STATE OF CHINA'S AUTO INDUSTRY Used car sales have regained momentum China Used Car Sales (2012 Mar. 2023) - (mn units) Used car sales: new car sales ≈ 1:1.5 -9% 17.6 18 16 14 12 10 -4% +13% 14.9 14.3 13.8 12.4 10.4 9.4 16.0 8 6.1 6 5.2 4.8 4 YoY: +7.0% 2.9 2 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Used cars +7.0% while New car sales are -6.7%: an indication of economic weakness as consumers prefer value for money in a period of economic weakness Source: China Automobile Dealers Association, Auto.sina.com, Automobility analysis Automobility Ltd 00 8#9STATE OF CHINA'S AUTO INDUSTRY While used car sales were up versus last March, they were about even with the prior month ('000 units) 2,000 1,500 1,575 1,000 7.4% 500 YoY Change Monthly Sales China Used Car Sales (Oct. 2021 Mar. 2023) (%) 100 80 1,618 1,544 1,456 1,485 1,417 1,433 1,467 1,485 1,416 1,459 1,450 60 1,352 1,318 60 1,278 1,248 1,188 35.5% 40 1,077 1,100 40 12.7% 3.7% -1.5% -2.2% -5.3% -1.8% -2.1% -7.2% -5.7% -7.1% 20 10.0% 0 -12.5% -16.0% -17.2% -15.9% -18.7% -20 -26.1% -40 0 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Source: China Automobile Dealers Association, Automobility analysis Automobility Ltd 9#10STATE OF CHINA'S AUTO INDUSTRY Value-seeking consumers are driving used car sales growth during a period of economic stress Used Car sales % New Car Sales China Vehicle Monthly Sales vs. Used Car Sales (Oct. 2021 Mar. 2023) - (000' units) Used Car Sales 5,000 2,786 2,610 2,522 2,531 2,556 4,000 2,502 2,420 2,383 2,505 2,333 2,328 2,234 48.2% 1,862 3,000 1,737 1,181 2,000 38.4% 38.0% 38.3% 39.0% 38.1% 36.7% 37.0% 37.1% 37.0% 36.2% 36.3% 35.1% 35.4% 35.6% 1,000 0 1,456 1,544 1,618 1,485 (%) 60 2,451 1,976 50 50 1,649 43.1% 42.5% 40 40 37.2% 30 30 1,318 1,077 1,100 1,188 1,417 1,422 1,467 1,485 1,352 1,278 1,416 1,248 1,459 1,450 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 20 20 Oct Nov Dec Jan Feb Expiration of tax incentives on purchase of new cars restores used car pricing advantage Source: China Automobile Dealers Association, Automobility analysis Automobility Ltd 10#11STATE OF CHINA'S AUTO INDUSTRY NEV share of sales have remained at ~25% or higher for the past 8 months China Vehicle Monthly Sales - (Oct. 2021 Mar. 2023) (000' units) NEV % PHEV (%) BEV ICE 3,000 448 539 615 361 347 476 541 32.9% 457 522 624 31.8% 490 316 395 114 27.9% 28.5% 376 88 89 27.1% 26.6% 26.6% 2,000 67 347 120 169 24.7% 333 26.9% 135 172 189 163 25 109 144 287 24.2% 23.8% 24.5% 171 22.6% '20.2%' 87] 231 10 19.2% 149 2131 2 40 35 30 20 121 17.8% 17.2% 16.4% 1,000 87 0 1,950 2,073 2,224 2,095 1,317 1,730 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 15 10 5 0 863 1,505 1,906 1,828 1,717 1,902 1,792 1,600 1,743 1,241 1,451 1,798 Comments NEV share of sales increased by 5.5% in the YOY 1st quarter The price war (initiated by Tesla) has effectively weakened the sales of traditional ICE brands, to the overall benefit of the leading NEV players Source: CAAM, Automobility analysis Automobility Ltd 11#12STATE OF CHINA'S AUTO INDUSTRY New Energy Vehicles remain as the only product category with sustained growth in the China auto market ('000 units) 1,000 YoY Change Monthly Sales 219.1% China NEV Monthly Sales (Oct. 2021 Mar. 2023) (%) 250 814 200 786 750 140.8% 593 708 714 666 150 139.4% 105.8% 125.0% 531 114.7% 596 118.8% 132.8% 653 525 100 114.1% 107.5% 500 450 465 466 98.3% 431 46.6% 86.4% 74.7% 408 383 50 351 53.3% 49.6% 299 40.4% 0 250 -5.3% -50 0 -100 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Comments NEV sales have stepped down from late 2022, but remain above 25% of the market ☐ BYD remains the 800 pound gorilla and has extended its lead in 2023 ☐ Overcapacity is a huge problem, and we can expect cut-throat pricing and added pressure to expand sales in overseas markets Source: CAAM, CPCA, Automobility analysis Automobility Ltd 12#13STATE OF CHINA'S AUTO INDUSTRY There is a widening gap in performance among the NEV market leaders in 2023 No. Group 3/2023 Sales YOY No. Model 3/2023 Sales YoY 1 BYD 192,289 86.3% 1 Tesla Model Y 54,937 38.3% 2 Tesla 76,663 16.6% 2 BYD Qin 43,230 74.4% 3 GAC (Aion) 40,016 97.0% 3 * BYD Song 40,114 50.1% 4 SGM - Wuling 27,848 -40.5% 4 * BYD Yuan Plus 27,907 178.6% 5 Geely 26,923 97.5% 5 BYD Dolphin 27,687 165.0% Chang'an 23,779 56.1% 6 * GAC Aion S 26,392 288.2% 7 *: Li Auto 20,823 88.7% 7 Hongguang Mini EV 23,159 -44.8% 8 VW* 14,517 6.3% 8 Tesla Model 3 21,726 -16.5% ΝΙΟ 10,378 88.7% 9 BYD Han 13,834 12.1% 10 GWM new 8,462 -43.6% 10* GAC Aion Y 13,267 39.6% The price war is forcing a restructuring of the market, with a widening gap in performance among the market leaders Source: CPCA, Automobility analysis *includes VW-SAIC and VW-FAW Automobility Ltd 14#1480.5% 65.9% STATE OF CHINA'S AUTO INDUSTRY The top 10 market leaders now command over 80% of China's NEV market, with BYD having 6 of the top 10 selling nameplates No. Group 2023 YTD YOY Market % No. Model Sales 2023 YTD Sales YOY 1 BYD 508,706 80.0% 38.8% 1 BYD Song 141,415 101.4% 2 Tesla 137,429 26.9% 10.5% 2 Tesla Model Y 94,647 26.7% 3 GAC (Aion) 80,308 79.0% 6.1% 3 BYD Qin 87,955 16.0% SGM - Wuling 77,701 -26.2% 5.9% 4 Hongguang Mini EV 69,842 -26.3% 5 CO Chang'an 60,674 98.0% 4.6% 5 BYD Dolphin 67,951 129.5% 6 Geely 59,597 33.2% 4.5% 00 6 BYD Yuan Plus 62,528 278.2% 7 Li Auto 52,584 65.8% 4.0% *: 7 GAC Aion S 48,310 180.4% 8 NIO 31,041 20.5% 2.4% 8 Tesla Model 3 42,782 27.3% 9 VW* 30,787 -5.1% 2.0% 9 BYD Han 37,817 9.9% 10 NETA 22,449 -25.5% 1.7% 10 BYD Tang 32,525 16.3% Source: CPCA, Automobility analysis Automobility Ltd *includes VW-SAIC and VW-FAW BYD's lead has widened its lead overall in 2023, with now more than half of their sales derived from PHEV models 15#15STATE OF CHINA'S AUTO INDUSTRY The NEV sales leaderboard is dominated by affordably priced locally-branded products ('000 CNY) 300 250 200 Tesla Model Y 260k - 360k 94,647 sold 150 BYD Song 150k 141,415 sold BYD Qin 130k - 175k 87,955 sold 100 50 BYD Dolphin -100k---130k- 67,951 sold Wuling Hongguang Mini EV 46k - 60k 69,842 sold 0 1 2 3 4 (2023 YTD leaderboard position) Source: Desktop research, Automobility analysis Automobility Ltd Tesla Model 3 230k - 330k 48,310 sold BYD Han 210k - 300k 37,817 sold BYD Yuan PLUS Aion S 140k - 180k 130k - 170k 48,319 sold 62,528 sold LO 5 6 7 80 BYD Tang 130k - 170k 32,525 sold 9 10 17#16STATE OF CHINA'S AUTO INDUSTRY A clear separation is emerging among the Smart EV players in China since their recent launches Sales of EV new forces, rolling 6m average Mar. 2021 Mar. 2023 - (units) Li Auto NIO Xpeng NIO ET5, EC6, ES8 P5,G9 小鹏汽车 理想 L7,L8,L9 Mar Jun Sep Dec Mar Comments Jun Sep Dec Mar 10,000 The sales trend of three EV new forces went very differently after the second tie in September 2022 mainly due their product strategies. All three brands have launched new models during June to September 2022. And Tesla has started its price war in China in October 2022. Automobility Ltd 18#17STATE OF CHINA'S AUTO INDUSTRY Foreign brands are especially weak in comparison to Chinese brands in 2023 China PV Sales by Brand Origin (% in terms of sales volume) 2017-2022 China PV Sales by Brand Origin (YTD, 2023) Brand Total Sales Volume Local OEMs 42% 44% 39% 36% YoY 41% 47% Origin (thousand units) 52% Local 2,683 5.3% Germany 1,007 -9.2% Japan 797 -31.3% Global OEMs 61% 58% 56% 64% USA 483 -9.3% 59% 53% 48% Korea 82 -12.8% 2017 2018 2019 2020 2021 2022 2023 YTD Local brands are very likely to outsell foreign brands for the first time since the opening and reform era began in the 1980s Gains accrue to a very small number of local players Japan OEMs are the biggest loser in the price war so far in 2023 Source: CAAM, desktop research, Automobility analysis Automobility Ltd 19#18STATE OF CHINA'S AUTO INDUSTRY Several NEV brands are facing precipitous double-digit declines in 2023 -68,7% CAD CHERY Worst performing NEV brands in 23Q1 (in terms of YoY Retail PV sales) -26,2% -25,5% -39,7% -47,3% HOZON XPENG 合众新能源 长城汽车 WULING 11th 4th 9th 14th 12th China's NEV market is "racing to the middle" Target customer demographic for low-end EV brands is more impacted by overall economic weakness and are less likely to purchase new vehicles. Price war initiated by Tesla pushes retail prices of mid- market segment into competition for "upgraders" seeking more BYD is now offering several value-priced models (Ocean. series: Seal, Dolphin) ICE brands are clearing inventory by offering huge discounts Source: Desktop research, Automobility analysis Automobility Ltd 20 20#19STATE OF CHINA'S AUTO INDUSTRY PV market is racing to the middle, with affordable upgrades available in the aftermath of the price war Retail PV sales, by segments, 2022Q1 - 2023Q1 2022Q1 2023Q1 -42.0% -17.0% -20.0% -14.0% +319.0% -39.0% A00 AO A B C Sedan AO A B C AO A B C SUV MPV Comments Total retail PV sales declined 13% yearly in 2023Q1. The biggest declines are in the A00 Sedan and A0 MPV segment, and the C SUV segment has increased 319%. PV customers who were shopping entry level vehicles are now racing to the middle market. And the demand for family vehicles is still strong after doubling growth in 2022. Source: Desktop research, Automobility analysis Automobility Ltd 21#20STATE OF CHINA'S AUTO INDUSTRY BYD is consistently outsells the next 4 competitors combined in the "top 5" NEV group (units) BYD Tesla 250,000 SGM Wuling GAC (Aion) Geely 200,000 China 2022-2023 NEV Sales of Top 5 (past 12 months) 223,678 217,624 205,789 184,829 191,237 172,052 168,885 192,289 176,662 171,306 158,553 157,756 149,825 150,000 132,553' 77,513 139,755 133,263 77,938 76,663 113,768 104,770 34,502 104,646 119,549 62,493 41,926 17,200 119,109 100,000 8,461 33,923 80,259 |9,825 40,437 38,860 36,173 40,383 43,491 43,712 34,510 27,848 54,792 65,056 32,709 50,000 1,512 31,894 27,021 30,016 30,007] 26,843 27,431 25,033 30,063 28,765 40,016 24,109 30,086 21,056 17,724 12,813 13,036 17,484 26,514 30,769 35,567 36,863 28,574 31,988 39,032 10,206 391 26,779 10,283 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Source: Desktop research, Automobility analysis 22 22#21STATE OF CHINA'S AUTO INDUSTRY Tesla resumed its pattern of peak domestic mix in the final month of this quarter Top Chinese EV Startups Vs. Tesla Sales Volume (Oct. 2021 Mar. 2023) - (units) Tesla Li Auto 80,000 NIO Xpeng 70,847 60,000 65,754 77,938 77,613 Mar. 2023 Model 3: 21,726 Model Y: 54,937 76,663 62,493 48,330 41,926 38,203 30,877 35,023 34,787 34,502 33,923 30,446 25,212 26,843 39,976 40,576 41,244 40,000 36,433 34,842 31,997 31,732 28,645 24,826 23,200 21,454 20,770 20,000 18,216 13,725 19,346 17,200 9,825 8,461 0 1,512 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Source: CPCA, Desktop research, Automobility analysis Automobility Ltd 23 223#22STATE OF CHINA'S AUTO INDUSTRY Tesla's price war may have mitigated weakened demand, but has thus far not expanded Giga Shanghai production volumes (units) Tesla China Sales Distribution (Jan. 2021 Mar. 2023) - Comments China Sales 120,000 Exports 100,000 62,493 76,663 77,613 78,906 80,000 34,502 33,923 17,200 65,754 26,843 19,346 60,000 23,200 41,926 40,000 20,000 1,512 9,825 8,461 0 40,500 33,315 60 14,17422,340 968 19,756 5,522 54,504 Jan Feb Mar Apr May Jun 13,870 39,208 12,206 42,463 37,798 40,479 Jul Aug Sep Oct Nov Dec Jan Feb Mar Weaker demand in China, combined with added global capacity have created a situation where global capacity now exceeds demand for Tesla Tesla's models have aged in hyper-competitive EV market Giga Shanghai along with new global capacities face risk of underutilization Tesla claims to be leveraging its cost advantage to grow its share internationally, but results in China are decidedly mixed Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q12023 Source: Desktop research, Automobility analysis Automobility Ltd 24 24#23State of China's Auto Industry BYD'S NEV Dominance Headline News Inventory Problem of ICE#24BYD'S NEV DOMINANCE BYD is the clear leader in the BEV category and is completely dominating the PHEV category BYD's share in NEV, by segments, 2022 BEV 5,365k units in total 17% BYD PHEV 1,518k units in total Others 18% GWM 8% Wuling Geely 4% 2% AITO 5% 57% 9% 62% Others 8% BYD Tesla Li Auto 5% 5% GAC Aion Geely Comments BYD sold more PHEVS (946k) than BEVs (911k) in 2022, taking 62% market share of PHEV in 2022. And its PHEV dominance widened in 2023Q1, reaching 65.4%. "Other" PHEV players include sino-foreign JVs like VW, Audi and Mercedes, but none of them has achieved a 1% market share. Source: Desktop research, Automobility analysis Automobility Ltd 26 26#25BYD'S NEV DOMINANCE PHEV share of NEV has been increasing since 2021 even as subsidies are decreasing Subsidy and share of PHEV, 2018-2023Q1 Comparison among BEV, PHEV and ICE Thousand RMB % 25 PHEV Subsidy Category BEV PHEV ICE 27% PHEV share in NEV 20 Model 22% BYD Qin EV BYD VW Qin DM-i Lavida 15 10 5 17% Launch of DM Range 510km platform Gen 4: 55km(battery) +1200km(fuel) 800km DM-i and DM-P Price 139.8k 99.8k 120.9k 0 0 2018 2019 2020 2021 2022 2023Q1 Fuel consumption per 100km 3.8L 6.5L PHEVs deliver longer range, lower fuel consumption and also qualify for free NEV license plates (until 2023). Source: Desktop research, Automobility analysis Automobility Ltd 27 22#26BYD'S NEV DOMINANCE BYD began R&D on PHEV in 2003 and launched an engine configuration optimized for PHEV in 2021 History of development of BYD DM platform 2003 2006 2013 2018 2020 2021 Started working on hybrid technology Launching DM(Dual Mode) platform Gen 1 Launching DM platform Gen 2 Launching DM platform Gen 3 Launching its Xiaoyun engine customized for PHEV Launching DM platform Gen 4: DM-i and DM-P 电动机最高热效率 BYD's Xiaoyun 1.5L engine customized for PHEV 骁云-插混专用涡轮增压 1.5Ti高效发动机 40%超高热效率 12.5高压缩比 米勒循环 可变面涡轮增压器 102 kW Comments BYD's PHEVS are cheaper than their BEV version, while other OEMs choose to sell the PHEV versions more expensive than the BEV versions. BYD's cost advantages are due to the vertical integration of engines and batteries. Source: Desktop research, Automobility analysis Automobility Ltd 28#27BYD'S NEV DOMINANCE BYD's Denza brand outsells VW ID series with only a single BEV model in 2023Q1 BYD's most premium priced model, Denza D9 Denza vs VW ID series, 2023Q1 Denza D9 ID 3 ID 4 ID 6 10,398 מזים 8,517 7,325 09 6,438 3,091 Mercedes-Benz 腾势 Comments 4,282 3,812 1,062 3,963 1,614 2,320 1,667 1,463 900 531 Jan Feb Mar Denza is a JV set up by BYD and Mercedes in 2010, and Mercedes sold most of its share to BYD in 2021. After BYD regained its leadership, Denza launched D9, a pure electric MPV, in August 2022. D9 is the most expensive model of BYD, with a price of 336-466k RMB. And Denza has launched a new SUV model during the Shanghai Auto Show. Source: Desktop research, Automobility analysis Automobility Ltd 29 29#28Automobility Ltd BYD'S NEV DOMINANCE BYD has increased its vertical integration capabilities to smart motion control for its NEV brands 以云为辇 智平山海 比亚迪云辇智能车身控制系统发布会 China's first intelligent body control system DiSus Solutions Features DiSuS-C DiSus-A DiSus-P Damping control Height control Rigidity control Sensing Four-wheel linkage DiSus BYD's Self-developed Auto Tech Stack Blade Battery DM BYD platform Cell to Body E4 power platform Comments The BYD DiSus System will be available in several models under the BYD Dynasty series, BYD Ocean series, DENZA, Yangwang, and a new brand launching this summer. A few of BYD previous models with hardware availability will be able to equip DiSus through OTA upgrade. Source: Desktop research, Automobility analysis 30 30#29State of China's Auto Industry BYD'S NEV Dominance Headline News Inventory Problem of ICE#30HEADLINE NEWS Tesla continues to make strategic moves to shore up its position across the value chain Upstream Midstream Downstream Tesla is opening a Megafactory for huge batteries in China Tesla cuts prices across all its electric car models in US Twitter Rebrands as X in Move Toward Becoming 'Everything App' By Ramishah Maruf and Juliana Liu, CNN Updated 3:27 AM EDT, Mon April 10, 2023 BUSINESS Source: Desktop Research, Automobility analysis Automobility Ltd APRIL 11, 2023 3 COMMENTS 2 MINUTE READ RIZ AKHTA! DRIVEN BYD follows Tesla price cuts with big discounts on Seal, its Model 3 competitor APRIL 12, 2023 0 COMMENTS 2 MINUTE READ RIZ AKHTAR BY PYMNTS APRIL 11, 2023 PYMNTS 32#31BYD'S NEV DOMINANCE Chinese Smart EV makers are launching their own Autopilot solutions through subscriptions in 2023 NOP+增强领航辅助 Navigate On Pilot+ XNGP 行业首个全场景智能辅助驾驶系统 Industry's First Full-Scenario ADAS System 高速高架NOA即将上线 L7 4月底开始推送,首批开放城市 「沪、苏、杭、嘉、湖」,年内推至全国 LS7 6月开启推送,年内推至全国 ,自动进出道 ABEBRAN ·最优车道选择 ·主动超越慢车 智能限速调节 ·弯道主动降連一 ·巡航车速个性化 ·保持横向安全距离 施工场景识别与安全提示 e17 OEM Solution NIO NOP+ Price (RMB) Hardware: 39,000 Business Mode Purchase + Subscription Software: 380/month • Hardware: 39,800 Xpeng XNGP Purchase + Subscription Software: 39,800 or 9,800/ year Tesla FSD • 68,000 Purchase SAIC IM NOA • Undisclosed Undisclosed Comments NIO announced launching its ADAS solution through a subscription model, expecting more volume with the low entry price. Tesla's FSD was not selling well in China, with only 2% purchase rate according to Musk. Source: Desktop research, Automobility analysis Automobility Ltd 33 33#32State of China's Auto Industry BYD'S NEV Dominance Headline News Inventory Problem of ICE#331.0 1.5 2.0 INVENTORY PROBLEM OF ICE There are still two million cars in inventory that that are not compliant with the new China VI emissions standard China Inventory Index of Auto Dealers The Munich Conference of ICE OEMS (past 12 months) 1.8 汽车主机厂国六B切换情况座谈会 M 1.9 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Comments EL 中国汽车流通协会 2023年3月30日 V SAIC 中国一汽 FAW GROUP DONGFENG 长安汽车 CHANGAN 上汽集团 广汽集团 SAIC MOTOR GAC GROUP 北该集团 CHERY BAIC Group Mercedes-Benz M M GEELY C 长城汽车 Audi TOYOTA The dramatic price cut in March was only the beginning of the story. There are still two million non- compliant cars in stock as of March that can only be sold as used cars when the new emission standard goes into effect on July 1st, leaving 3 months for further price cuts. OEMs and dealers are asking the government for a delay through industry associations. Source: Desktop research, Automobility analysis Automobility Ltd 35 55#34Contact us Please find below contact details for our offices in Shanghai or contact us at [email protected] Tel Aviv Automobility Limited 101 Rokach Blvd, Tel Aviv, 6153101, Israel Tel +972 54 5424074 Shanghai Automobility Ltd Corporate Avenue One, No.222 Hubin Road Shanghai China 200021 Tel +86 139 1757 7148 Hong Kong Automobility Limited RM 2507, 25/F CC WU BLDG 302 HENNESSY RD WANCHAI HONG KONG дал A AUTOMobility Automobility Ltd 36