With an integrated R& D system and strategies on developing independent brands, SAIC Motor plans, within five years, to successively launch five platforms including high-and medium-grade Roewe (2007), medium-grade W2 (end of 2007), SUV (2008), medium-end cars no better than W2 (end of 2008) and MPV (2009), so as to form full-series passenger vehicle system. Besides, SAIC attempts to sell 250,000 cars with independent brands and 300,000 engines by 2010, and launch more than 30 different types of cars except Roewe in the future.

Currently, the localization rate of Roewe has reached 80%, and key parts including engine other than gear-box can be made at home. SAIC is about to produce gear box on their own in 2008.

Sales volume of Ssangyong Motor in 2007 is expected to reach 140,000 units, up by 20.7% year on year; sales revenue achieve RMB30 billion and net profits come to RMB 350 million. Sales revenue is estimated to reach RMB33.8 billion and net profits RMB473 million in 2008.

Shanghai Volkswagen has no plan for expansion, and it together with Skoda products uses the same production line. The current capacity is 480,000 units and capacity utilization is expected to gradually recover from 52.08% in 2005 to 92.08% by 2007.

The growing sales of Shanghai Volkswagen in 2007 should owe to Skoda Octavia and POLO, totaling an estimated 438,000 units, up by 25.6% year on year.

Shanghai GM seems no plan for capacity expansion as well recently and its current capacity is 520,000 units. The output of Shanghai GM in 2007 is likely to rise by 21.7% year on year to 495,000 units and net profits RMB5.735 billion.

1 Q1 performance
2 Joint-venture can ensure the profit growth in the short term but independent brands are the drivers for profit growth in the long term
3 SAIC Motor Manufacturing Company is the activator of share price as well as the long-term profit growth area
4 Ssangyong not only generates profits but also can make independent brands stronger
5 Volkswagen AG creates opportunities for Shanghai Volkswagen to make profits
6 Adjusting product structure ensures Shanghai GM profits to grow steadily
7 Shanghai GM Wuling sees a steady profit growth