BYD's NEV Dominance

STATE 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

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