Advantages of Our Cooperation on Auto Assembly Project

Advantages of Our Cooperation on Auto Assembly Project

1.Technological advantage: China has become the No.1 auto manufacturing country in the world since 2009, and automobile manufacturing technology has been very mature. Especially the new energy automobile science and technology level is in the world leading position.

2010, China became the largest manufacturer of automobiles in the world.
2016 Chinese auto production about 28 millions units > Japanese cars production + U.S. auto production + Korea auto production

2016, the production of new energy vehicles in China was 700,000, the world's largest, surpassing the total output of new energy vehicles in all other countries .
2017, the production of new energy vehicles in China was 860,000, the world's largest, surpassing the total output of new energy vehicles in all other countries .
2018, the Chinese government released latest news that electric vehicle manufacturing standard is higher than Europe standard.

2.Cost advantage: we are the automobile manufacturing group, the overseas chain operation scale advantage makes the KD parts we offer have higher cost performance ratio.Plus cost savings of difference of importing tariff between CBU and CKD gives our final product absolute competitive advantage.

3.Capital advantage: Auto Manufacturing Group + Capital Group provides sufficient investment funds for overseas chain operations. China's huge capital strength, and the Chinese government's national strategy of Belt and Road, provide a guarantee of sustainable growth for overseas chain auto assembly plant projects . With the development of parts localization, the industrialization of the project country will be greatly improved; this is a national win-win strategy.

4.Operational advantage: Over the past 10 years, eight overseas joint ventures have been successfully managed and operated. Our overseas joint venture projects include:

1)Syria A&B auto plant;

2)Ghana MKC Auto Co.,Ltd;

3)Angola ATJ-JinBei Auto Co.,Ltd;

4)Eastern Vehicle Co.,Ltd;

5)South Asia Brilliant auto plant;

6)Middle east Brilliance-Bavarian motor Ltd;

8)Mozambique bus assembly plant;

5.Highly efficient, customized investment mode:Refined investment schemes tailored to local conditions make it possible for highly capitalized, high-tech automotive manufacturing projects to be available in developing countries; our core competitiveness include: under the win-win principle, we actually provide manufacturing technology, invest in critical equipment, train local workers, transfer manufacturing technology, and provide guaranteed financial credit support. According to the actual situation of the project, provide the customized project implementation plan (step by step, decompose the big goal into several small tasks that can be implemented step by step).

6.Excellent win-win cooperation mode:

Portfolio of complementary advantages: China invests in technologies that are not available locally, key facilities; local investors have land, plant, general equipment and liquidity.

Cooperation to make up for each others weakness : China is good at production management, technical advantages, local partners are familiar with the local market, government network.

Local partner holding majority can fully mobilize the work enthusiasm of the partner.

Local partner holding majority can be regarded as national industry, easier to obtain government preferential policy support and government orders. It is easier to get more support from banks and consumers, and the joint factory will be identified as national industry; it will be easier and better to run complex social relationships that are conducive to the development of enterprises.

In short, only unity of interests results in cooperation cohesion and win-win cooperation can have sustainable growth.

7.The profiting mode of the KD assembly plant project is to make effective use of the tariff difference and freight between CBU and KD parts, and combine with the subsidy policy of local government industrial development to produce the products which are good and cheap and meet the needs of the market.

Quantification of profit sources:

A. Chinese cars have the highest cost performance ratio and very strong market competitiveness. (the advantage is about 20-30%)

B.By importing CKD, you can save tariffs and freight compared to the CBU term.-SKD/CKD terms compared to the CBU terms, import tariffs have a 25-35% difference. (25-35%) Price advantage

C.With SKD/CKD, you can ship more goods than CBU, saving freight. (cost savings 5-10%)

D.When you develop the market, there are 4S stores and our technology supply, and you can provide good after-sales service. Parts trade is a new profit growth point. Generally speaking, it accounts for about 20-30% of the total value. (20-30%)

E.You can use your own brand for the car, which is an intangible asset. (total value over50% ) We provide technical support and credit.