Asian Cars Dominate in the US

Date: 1/14/2010

The US automobile market continued to be in the gloomy state in 2009 while

Asian cars outperformed American cars, taking 47.4% of the total market
shares. According to the auto research firm Autodata’s statistics, the US sold
10.43 million automobiles in 2009, far lower than the average 15 to 17 million in
the past 15 years. The total market shares of the three major US auto-makers
General Motors, Ford and Chrysler in 2009 were only 44.2%, less than 2008’s
47.5%.

Asian cars’ shares in the 2009 US market on the other hand reached 47.4%,
better than previous year’s 44.6% and beat the total shares of the top three US
auto-makers for the first time in history. In particular, both of South Korea’s
market share and sales volume grew considerably in adversity. Hyundai’s
market share increased from 2008’s 3% to 4.2% and sales volume rose 8.3%,
achieving 435,000 cars. Kia’s market share also swelled from 2.1% in 2008 to
2.9%. Its sales volume expanded 9.8%, producing 300,000 cars.

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 Brazil Auto Sales May Pass
Germany's to Become World's
4th-largest Market Date: 4/20/2010

Brazil may pass Germany this year to become the world's fourth-largest auto
market after banks cut interest rates and eased loan terms, putting purchases
in reach for more consumers.

Wider access to credit in South America's biggest economy expanded the pool
of potential buyers by more than 50 percent, said Guido Vildozo, an IHS Global
Insight Inc. analyst. IHS and researcher J.D. Power & Associates both forecast
Brazil eclipsing Germany in 2010. "Brazil is an emerging market, coming of
age, and Germany is more of a mature market," said Jeff Schuster, J.D.
Power's executive director of forecasting.

Brazil had been an independent country for only 64 years when German
inventor Karl Benz got a patent for his first car in 1886. Germany, home to
Volkswagen AG and Daimler AG, began the last decade as No. 3 in sales after
the U.S. and Japan before being passed by China, which now holds the top
spot.

Vehicle sales in Brazil totaled 3.1 million in 2009, compared with 4 million for
Germany, according to J.D. Power. This year, Brazil will rise to 3.4 million and
Germany will drop back to 3 million. Brazil's population is about 206 million,
compared with Germany's 82 million.

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 China's Auto Prices Rise Most in at
Least Four Years
Date: 3/4/2010

Chinese vehicle prices rose 1.3 percent in January 2010, the most in at least four years, as
government stimulus measures stoked demand in the world's largest auto market.

"The January price hike is a surprise," Cheng Xiaodong, an official with the National Development
and Reform Commission's vehicle-price monitoring division, said in an interview on February 11, in
Beijing.

Shares of SAIC Motor Corp., the biggest Chinese automaker, and of Warren Buffett-backed BYD
Co. rose as the higher prices eased concerns about competition and overcapacity denting profits.
Nationwide auto sales more than doubled last month from a year earlier as the government
handed out vehicle subsidies and the global economy rebounded from a recession.

"The price increases benefit automakers as well as dealers," said Chu Yanhui, an analyst with AJ
Securities Co. in Shanghai. "But there is not much room left for persistent increases given the
intense competition in the market."

Passenger-vehicle prices, which exclude trucks and buses, rose 0.82 percent in January from a
year earlier and 2.33 percent from December, Cheng said. Prices may fall about 0.5 percent by the
end of the year as automakers boost production, he said.

BYD Co., the maker of China's bestselling car, had its biggest gain in more than two months in
Hong Kong trading, climbing 5.7 percent to HK$61.20. SAIC Motor, a partner of General Motors
Co. and Volkswagen AG, rose 2.1 percent to 21.11 yuan in Shanghai.

The gap between Chinese vehicle production and sales was 49,400 units last month, according to
the China Association of Automobile Manufacturers. Sales reached a monthly record of 1.66
million vehicles, it said.

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 China's Automakers Aim for 'Green'
Market Niche
Date: 5/6/2010

The first Chinese-made car to hit the U.S. market might be an all-electric
minivan that skips over gasoline technology and gets a head start on the auto
industry's next era.

BYD Inc., part-owned by billionaire investor Warren Buffett's Berkshire

Hathaway Inc., hopes to start selling its five-seat e6 on the West Coast this
year.

The e6, displayed in late April at the Beijing auto show, is one of a series of
"green" vehicles being developed by Chinese automakers that run on
everything from batteries to solar panels and tiny wind turbines. They lag
Western rivals in technology but are working at a frenzied pace to ensure they'll
be part of the green automobile age.

"Automakers want to invest because they know it's one area where they can
really compete abroad," said Liu Lixi, an auto analyst with Northeast Securities
Co. in Shanghai.

China, the world's biggest auto market since last year, is emerging as both a
major potential buyer of green vehicles and a source of eager if inexperienced
producers such as BYD, Chery Automobile Co. and Volvo buyer Geely.

Beijing is promoting green transportation in hopes of cleaning up its battered

environment, reducing surging reliance on imported oil and capturing a share of
a promising infant industry with no entrenched competitors.

The government announced in March it will promote Chinese technology with

tax breaks and other subsidies similar to those given in the United States,
Japan and Europe. Automakers are waiting for details.
If BYD can get its e6 to market in the United States, it would be in place to compete with
the first wave of mass-market American all-electric vehicles, including General Motors
Co.'s Chevrolet Volt and Tesla Motors Inc.'s Roadster.

Other Chinese producers have announced plans in the past to export to the United
States but have yet to meet American emissions standards. Going all-electric, which has
no emissions at all, would eliminate that hurdle. Chinese cars also have yet to pass
Western crash tests, and BYD spokesman Paul Lin said the company was working on
satisfying safety standards for the e6.

Other Chinese automakers are working on a wide array of alternative cars, some of
which debuted at late April's Auto China 2010.

Dongfeng Motor Corp. showed its all-electric I-Car, a toy-like concept car that looks like
a smiley face on wheels. The tiny hatchback's styling is straight out of "Star Trek," with
glowing neon blue hubcaps and a futuristic interior with touch-pad buttons.

Geely unveiled six alternative energy vehicles, some of which it said it plans to release
by next year. Geely shot to prominence abroad in March when it agreed to buy Volvo
Cars from Ford Motor Co. for US$1.8 billion. Geely is still in the early stages of research
on green vehicles and it could be two to three years before it decides on its long-term
strategy, said its founder and chairman, Li Shufu.

SAIC planned to debut its Leaf at the Shanghai Expo, which opened May 1 and is
expected to draw some 70 million visitors, including five million from abroad.

"Renewable energy cars are the concept and future in the industry and Geely is part of
it," said Li.

One of the most extreme visions of China's green future is the Ye Zi, or Leaf, an
experimental car developed by SAIC, the local partner of GM and Volkswagen AG. It
looks like a praying mantis on wheels, with a jutting leaf-shaped roof that supports solar
panels and tiny wind turbines on its wheels to top up its batteries.

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 China's Car Output Slows After First
Quarter 50% Gain
Date: 5/13/2010

Baoshan Iron & Steel Co., the biggest supplier of automotive steel in China, said car production is
slowing after a more than 50 percent gain in the first quarter.

Steel demand from automakers in China has dropped "a bit," General Manager Ma Guoqiang told
investors in an online conference on May 5. Baoshan Steel's order books for all its major products,
including automotive sheets, are full, he said.

A slowdown in auto demand in China, the world's biggest vehicle market, may intensify competition for
market share by Toyota Motor Corp., Volkswagen AG and Nissan Motor Co. Baoshan Steel has
forecast first-half profit will jump 6- to 10-fold as prices and demand recovered with the easing of the
global recession. "The slowdown in the auto industry is a correction to earlier gains which were too
fast," Ma said. "The most difficult period is over, judging from the economy and steel demand."

Baosteel Group Corp., the parent of Shanghai-based Baoshan, said in November 2008 that it faced its
"most difficult" period since its founding 30 years ago because of the global crisis.

Profit margins on automotive steel sheets have been "very good" for Baoshan Steel since the third
quarter of 2009, Vice President Chen Ying said at the same conference on May 5.
Baoshan Steel, China's biggest publicly traded mill, has raised cold-rolled coil prices by 21 percent
and hot-rolled coil by 30 percent this year, researcher UC361.com analyst Hu Yanping said.
Cold-rolled is used in automobiles and appliances, and hot-rolled is used to make cold-rolled coil.

Chinese steel prices have fallen 2.2 percent from an 18-month high of 4,698 yuan (US$688) a metric
ton on April 15 amid concerns government measures on the property market will curb demand,
according to Beijing Antaike Information Development Co.

"The price correction is normal," Ma said. "Good demand and higher raw-material costs will limit the
price drops. China's curbs on the property market are unlikely to hurt our earnings as we have little
product exposure to construction."
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 China's Influence Grows in Global Auto
Market
Date: 4/29/2010

The 2010 Beijing International Automotive Exhibition (Beijing Auto Show) just held in late
April showed China’s growing influence in the global auto market.

Nissan's Teana sedan has a full-size back seat, conservative looks and a reasonable
price -- just the thing for a Chinese entrepreneur with a family.

That Chinese buyer is why the car exists. Nissan says the Teana, though also sold in
Japan and other countries, was created with China in mind -- one of a growing number of
models designed by global automakers for the world's biggest car market.

"The Teana is a Chinese product," said Nissan Motor Co.'s CEO, Carlos Ghosn, at the
Beijing Auto Show held in late April, 2010. "Without any doubt, the Chinese consumer
now is becoming a big target for a lot of products that we are developing."

China's car buyers have become an important force in the design decisions of
automakers from Nissan to General Motors Co. to Volkswagen AG. Their influence is
starting to be seen in vehicles sold worldwide.

The reason is obvious: China's auto market surged past the United States last year to
become No. 1 at a time when sales elsewhere are so weak that major brands make most
of their global profit in China.

"From volume cars to luxury cars, we can see that all car makers are trying to design cars
to fit Chinese tastes," said John Zeng, an analyst for IHS Global Insight.

Automakers are modifying luxury cars to suit China's new rich and creating scaled-down
sedans and minivans for the populous but lower-income family market.

China's growing influence echoes defining periods of expansion in the industry's history --
from Europe to Detroit a century ago and the rise of Japan since the 1970s.
GM was a pioneer in designing for the Chinese market. Its Cadillac unit created its
2008 CTS for China, giving it a bigger back seat for Chinese buyers who sit in back
and have drivers. That model was sold worldwide, so Cadillac customers everywhere
got the added legroom.

Other producers are following. Daimler AG's Mercedes-Benz debuted an extended

E-class sedan for China at the Beijing Auto Show. Ford Motor Co.'s Volvo Cars and
Volkswagen AG's Audi have created Chinese models with bigger back seats.

Luxury makers are giving cars a longer wheel base and stronger suspension for a
smooth ride on China's rougher city streets.

China had almost no private cars 15 years ago. But sales have grown so fast since
then that the country already is the biggest market for VW, Europe's biggest
automaker. It could replace the United States as GM's top market by vehicles sold as
early as this year. GM sold 2.1 million cars and trucks in the United States in 2009
and says total China sales of all its brands, including those with local partners, should
pass 2 million this year.

"The lines are going to cross. It's only a matter of when," said Tim Lee, GM's
president for international operations outside North America and Europe.
Automakers and industry analysts say Chinese car ownership levels are still so low
that sales, from luxury to economy brands, should grow strongly in coming years as
millions of families buy their first car.

In the mass market, China-inspired cars mix smaller size and lower price with bigger
vehicles' more sober styling and focus on interior room. That is aimed at first-time
buyers who might be middle-aged with children or a business and care about
practical transportation, not sporty looks.

Nissan's Teana is priced at 177,000 to 366,000 yuan (US$25,900 to US$53,600) --

several times China's average annual income of about US$3,000 per person but
much less than a similar-size car costs abroad. Nissan sold 35,400 Teanas in China
from January to March, up 88 percent from the same time last year, according to J.D.
Power.
GM's compact Sail, designed for China and made with a local partner, Shanghai
Automotive Industries Corp., is priced at 57,000 to 69,000 yuan (US$8,300 to
US$10,100). GM's compact Wuling Zhiguang minivan, also made with SAIC, costs
37,000 to 46,000 yuan (US$5,400 to US$6,700).

Chrysler LLC linked up with a Chinese partner, Chery Automobile Co., to turn one of its
low-priced models into a compact for the U.S. market but the alliance was called off
after the global crisis hit.

China's influence extends to products marketed by global automakers in other

developing markets.

GM and SAIC announced in December they will expand their partnership to India to
make and sell Wuling minivans and flatbed trucks. Last year, Wuling became the first
brand in China to top 1 million units in annual sales.

"We are currently exporting Wuling products to a number of markets in Africa and in
South America very successfully," Lee said. "We know we will be successful in India as
well."

Ford is following a different strategy, using Chinese market research to help design
global vehicle platforms rather than creating a China model, said Joe Hindrichs, Ford's
company's president for Asia-Pacific and Africa.

"What's most important to us is that we have Chinese input from consumer research
and Chinese employees into the design process of our products so we get Chinese
desires and perspectives," Hindrichs said. "We are doing that on all our global products
because we know how important the Chinese market is."

At the Beijing Auto Show, Ford displayed a micro-compact concept car, the Start, with a
three-cylinder engine. Its chief designer, J Mays, said Ford had crowded Chinese cities
in mind when it created the car.

Automakers also are turning to China for design talent.

Nissan plans to open a Beijing design center in 2011. It would be the first in China for a
Japanese automaker and add to Nissan studios in Japan, Britain and the United States.
 For now, Sails are sold only in China. But, Lee said, "We could easily use those
designs and that product in other markets."

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 Electric Cars Win Hype; Staying Power
Questioned
Date: 4/8/2010

Electric cars are riding high, as incentives and new models make them a realistic
option, but the fresh attention may highlight flaws compared with gasoline and
alternatives such as biofuels.

The attention rankles with some in the biofuel industry, whose own hype was abruptly
halted by a glut of production in 2007, subsequent bankruptcies and a fall from grace
after a link was drawn -- which they dispute -- between biofuels and spiraling food
prices and rising hunger.

Gasoline may beat off both alternatives for decades as the least-worst option, with
wider adoption of more efficient conventional cars helping to curb carbon emissions
and oil dependence.

The uncertainty is striking for a US$5-6 trillion global auto and fuel supply market,
where there is agreement only that the number of cars will keep rising, perhaps
doubling to 2 billion by 2050.

The momentum is with electricity, following an oil price spike in 2008, lavish
government incentives and a crippling downturn across the wider car industry. In late
March early April, the United States finalized fuel efficiency standards, following similar
rules in Europe.

Green cars grabbed centre stage at auto shows this year in New York, Geneva and
Detroit, including all-battery cars, hybrid varieties that switch between electric and
gasoline, and small, more fuel-efficient conventional cars.

But battery electric vehicles (EVs) are expensive.

Mitsubishi Motors and Nissan Motor Co in late March early April announced prices for
their i-MiEV and Leaf battery-only electric cars, in production already or about to
debut, at 3.98 million yen (US$42,520) and 3.76 million yen respectively before state
subsidies, several times the cost of equivalent cars.
Reality bites with driving ranges of about 100 miles (160.9 km), far less than for a
petrol car which U.S. customers expect to exceed 300 miles. And electric cars
have to contend with the multi-billion-dollar cost of a new charging infrastructure,
although they benefit from running costs at about a quarter of gasoline at today's
prices, according to electric car advocates.

"The electric vehicle sector certainly has momentum, but it's questionable whether
it has the legs for the longer term, at least at the moment, and whether it has
enough scale," said Peter Wells at Cardiff University's Centre for Automotive
Industry Research, who expected big cost reductions.

Success depends on drivers accepting limitations on range and on re-charging

time, which takes several hours, said Pierre Gaudillat, research and development
manager at the UK-funded Carbon Trust.

"I don't see any major breakthrough on the horizon," he said. Customers may have
to compromise on what they expect from a car, perhaps tailored for commuting,
and from ownership, for example buying the car but renting the expensive battery.
Hybrid gasoline-electric cars overcome the range problem but are still pricey
because of their complexity and battery costs. Sales of hybrid-electric vehicles are
expected to reach about 1.3 percent of an estimated 67 million light vehicle sales
this year, according to the information company J.D. Power and Associates.

Battery-powered, all electric vehicles (EV) will only amount to about 20,000 units,
but by 2015 could reach a 0.3 percent market share.

The International Energy Agency says EV and hybrids must reach at least 7
percent of global car sales by 2020 to hit targets to avoid more dangerous climate
change.

Global biofuel production, meanwhile, will grow 16 percent in 2010, according to

the Global Renewable Fuels Alliance. of both electric and biofuels are disputed.

Gasoline may continue to dominate both, especially if oil price rises are muted by
efficiency drives. Automakers are already making smaller engines more powerful
and transmissions more efficient, while the carbon emissions savings of both
electric and biofuels are disputed.
"I think oil-based transport fuels have such a competitive advantage and dominance
that you need a compelling argument to move to something different, and the case
has not been made for what that is," said Chris Mottershead, vice principal of
research and innovation at King's College London, and former head of climate
change at oil major BP.

Technologies to replace gasoline enthuse investors, even those doubtful of any

climate threat, given the vulnerability of the United States and others to oil prices.
The United States imports over half the petroleum it consumes. HSBC is one backer
of electric, investing US$125 million in January in Better Place, a California-based
company that wants to build charging networks and lease batteries to customers.

HSBC climate change analyst Nick Robins stressed a wider benefit, or "positive
spill-over," from electric cars which he contrasted with the negative wider impact of
biofuels. Car batteries could help balance electric grids that are increasingly
dependent on intermittent wind, by re-charging at night, Robins said.

Biofuels are made from sugar, corn and oil seeds now, and perhaps in the future
from grass, crop waste and wood. Rising biofuel demand has stoked prices of
feedstocks such as corn, but may only have played a small part in the 2008 food
price spike, analysts say.

The oil major Royal Dutch Shell is a big backer of ethanol, striking a deal in February
with Brazil's Cosan to create a US$21 billion a year ethanol joint venture.

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 Gartner Predicts Over 50% of New
Cars in Mature Markets Will Go
Online in 2012 Date: 1/7/2010

The world’s leading information technology research and advisory company

Gartner predicts that the multinational auto makers who are most skilled at
attracting consumers and creating product differentiation to generate profits,
will focus on the mature auto markets of the US and Western Europe to
develop wireless data connectivity on automobiles. It is expected that by 2012
over 50% of the new cars in the mature markets will be able to go online.

Gartner’s research has discovered that in the past two years, consumers’
interest in the wireless applications and services that can raise the quality of
driving or being in the car has grown significantly. As the amount of wireless
connectable consumer products like smart phones and mobile internet devices
(MID) continue to multiply, consumers not only want to go online in office or at
home, but are increasingly also being tempted and hoping to use digital
transmission even when driving or in transit.

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 German Carmakers Playing Catch-Up
in Electric Automobiles
Date: 5/19/2010

Despite the Mini E's exuberant performance, the German car industry has been
accused of moving far too slowly to develop viable alternative-drive and electric
vehicles that can help tackle environmental problems.

Moving out into the fast lane of the A100 motorway that threads through Berlin's
southern suburbs, the Mini E from German automotive giant BMW seems like a
sensible, modest city car -- but not for long.

Stepping on the accelerator pedal produces, in contrast to any normal vehicle,

no noise, only speed. Lots of it. The cheeky little roadster surges forward with
disarming, effortless alacrity. Driving it is, well, electric.

Appearances are deceptive, however. Despite the Mini E's exuberant

performance, the German car industry has been accused of moving far too
slowly to develop viable alternative-drive and electric vehicles that can help
tackle the twin problems of carbon dioxide (CO2) emissions and city pollution.

"We still have no fully developed and price-competitive mass production vehicle
available," Transport Minister Peter Ramsauer told the Berliner Zeitung
newspaper on May 17.

Despite the Mini E's exuberant performance, the German car industry has been
accused of moving far too slowly to develop viable alternative-drive and electric
vehicles that can help tackle environmental problems.

Moving out into the fast lane of the A100 motorway that threads through Berlin's
southern suburbs, the Mini E from German automotive giant BMW seems like a
sensible, modest city car -- but not for long.
Stepping on the accelerator pedal produces, in contrast to any normal
vehicle, no noise, only speed. Lots of it. The cheeky little roadster surges
forward with disarming, effortless alacrity. Driving it is, well, electric.

Appearances are deceptive, however. Despite the Mini E's exuberant

performance, the German car industry has been accused of moving far too
slowly to develop viable alternative-drive and electric vehicles that can help
tackle the twin problems of carbon dioxide (CO2) emissions and city
pollution.

"We still have no fully developed and price-competitive mass production

vehicle available," Transport Minister Peter Ramsauer told the Berliner
Zeitung newspaper on May 17.

To that end the national platform set up seven committees to drive

government-industry cooperation, each representing an area of technology,
from batteries to integration of electricity networks, although no major
promise of state funding for any of them was made.

The government says that since early 2009, over 500 million euros (US$665
million) of state money has flowed into research and development of electric
vehicles.

Since 2009 the car industry itself has been active in two major pilot projects
in Berlin, which seek to build experience of how electric vehicles would work
in the real world.

The first, which involves the BMW Mini E, is run by energy provider
Vattenfall, and has let 50 of the vehicles loose on the public with the proviso
that they report their findings.

A similar system is operated by Daimler and utility RWE, with a

battery-powered Smart car as the test vehicle.

In each system, the participant gets a car and a charging device installed in
their home, to which the vehicle gets connected for recharging.
 The Mini E needs about 4 hours for a full charge, which Vattenfall has designated
to come exclusively from wind energy, a renewable source of which there is
plenty in blustery northern Germany. In this way the CO2 reducing effects of
driving an electric vehicle are maximized.

"In normal commuter use, there are plenty of our test users who say they only
have to recharge the car once every three days," Vattenfall spokesman Andreas
Weber told the German Press Agency dpa.

But the range limitations of electric car batteries -- less than 200 kilometers on a
single charge -- are still the major hurdle that needs to be overcome.

Another is the convenience -- or lack of it -- of finding somewhere to charge the

car: If you don't have a garage to put your car in, where do you charge it up?

Weber says that the next stage of the pilot project will involve street-mounted
loading columns that will allow inner-city apartment dwellers to connect their cars
to the grid.

The National Electric Mobility Platform is to present a report by the end of 2010. It
will then be seen, if, as claimed by Economy Minister Rainer Bruederle, that
Germany can "re-invent the automobile for the 21st century."

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 High Growth Anticipated in Taiwan’s
Auto-Parts Production
Date: 3/25/2010

The lower-tariff cross-strait automobile trade after the signing of ECFA will in
turn increase the production value of Taiwan’s auto-parts supply chain.

The cross-Taiwan Strait automobile makers have agreed recently that after the
cross-strait Economic Cooperation Framework Agreement (ECFA) is signed,
minibuses will enjoy zero tariff. Estimated from the 25% cap on imported
automobiles in both markets, China will be able to sell 10,000 cars to Taiwan
and from Taiwan 100,000 cars to China annually, which will in turn increase the
production value of Taiwan’s auto-parts supply chain to exceed NT$100 billion
(US$33 billion).

The Chinese government has promoted a series of subsidy policies since 2009
to stimulate a rapid growth of the new cars’ market. 1,340 new cars were
estimated to have been sold in 2009, with an annual growth rate of 43%.

According to calculations of the China Association of Automobile

Manufacturers, the average automobile price in China is RMB$80,000 and the
per capita income has also exceeded US$3,000. It has been anticipated that
China’s automobile market will maintain a high growth rate of 15% in the next
two years.

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 India and China Car Sales Race Higher
Date: 4/14/2010

Car sales in emerging market giants India and China roared ahead in March as newly affluent
consumers flocked to showrooms in the buoyant Asian economies, figures showed on April 9.

March passenger car sales in India leapt 20 percent to 155,600 units from a year ago, while in
neighboring China they soared 63.2 percent to 1.26 million units over the same period.

"Underlying strong economic growth in both countries is really pushing the markets," Paul Newton
at London-based IHS Global Insight told AFP.

Global automakers have been steering to China and India, the world's two fastest-growing major
economies, as sales in most developed countries slumped in the fallout of the global financial
crisis.

Government stimulus packages in both Asian nations, along with cheap financing and new model
launches have helped drive demand among increasingly well-off consumers.

India's total domestic passenger car sales for the fiscal year which ended in March climbed by 25
percent to 1.53 million units from the previous 12-month period, according to the Society of Indian
Automobile Manufacturers (SIAM).

Last year marked the fastest pace of growth in six years but SIAM President Pawan Goenka said
the "exceptionally high" rise for last year could be attributed to depressed year-earlier figures when
India and the rest of the world were gripped by the economic downturn.

India's strong sales have made it the second fastest-growing vehicle market after China.

But India's performance is dwarfed by Chinese sales which soared more than 45 percent last year
to 13.64 million units even as many other markets in the world posted negative growth.
China's vehicle market "is growing furiously" said Global Insight's Newton, with auto sales greased
by Beijing's slashing of consumption tax on small vehicles and subsidies for consumers replacing old
cars.

"In China, you have a government that is really supporting the auto market," Newton said.

The Chinese data for March released by the China Association of Automobile Manufacturers came
as the country's biggest automaker, SAIC Motor, forecast first-quarter net profit would leap by more
than 300 percent year-on-year, according to the state-run People's Daily Online.

But in both India and China, analysts say rising raw material costs pose worries for the sector. Iron
ore producers have been raising prices steeply, pushing up the cost of steel -- a key vehicle
component.

"There are some headwinds going forward with rising raw material costs which will add to ownership
cost," Vaishali Jajoo at Mumbai's Angel Broking told AFP.

In India, the government has also raised excise duties on cars as part of a gradual unwinding of fiscal
stimulus and, with domestic inflation running at close to 10 percent, the central bank is expected to
hike borrowing costs.

The Indian automobile association said it expected sales growth to taper to between 10 and 14
percent in the year to March 2011. Slower double-digit growth up to the mid-teens was also seen for
China, analysts said.

Still, low automobile penetration in India and China, where many consumers are buying their first
cars, is expected to keep the market solidly underpinned and make the nation a lucrative destination
for global automakers.

The U.S. auto giant General Motors, the biggest foreign automaker in China, reported March sales in
the country soared 68 percent from a year earlier to a record 230,048 units, while its first-quarter
sales were up 71 percent from a year earlier to 623,546 units.

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 India's Auto Sales Bolstered 50% in
January 2010 on Yearend
Date: 3/10/2010

India's auto sales surged 50.2 percent compared to a slow January in 2009 and
thanks to accelerated buying in anticipation of rising taxes and interest rates.

Sales of passenger cars rose 32.3 percent to 145,905 units while commercial
vehicle sales zoomed 130.8 percent to 53,447 vehicles, the Society of Indian
Automobile Manufacturers said on February 9, 2010. Sales of other passenger
vehicles, like utility vehicles, rose 54.0 percent, to 41,700 units.

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 Japanese Electric Car Makes Record
1000-Kilometer Trip without
Recharge Date: 5/27/2010

Members of the Japan Electric Vehicle Club succeeded in driving an electric

car for a record 1,003.18 kilometers without recharging the vehicle's battery,
media reports said on May 24.

The car, powered by a lithium-ion battery system developed by Sanyo Electric

Co, was driven for 27 hours at a speed of 40 kilometers per hour at a test on the
weekend of May 22-23 on a racing course in Shimotsuma in the east-central
prefecture of Ibaraki.

Seventeen drivers took turns in the record attempt, the Kyodo News agency
reported. The club broke its own record of last year of 555.6 kilometers and
said it planned to ask Guinness World Records to recognize its achievement.

Sanyo is the world's largest maker of rechargeable batteries. The company

said this month that it was to supply carmaker Suzuki Motor Corp with battery
systems for its hybrid cars.

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 Smaller-Size, Electric Cars Reign at
Detroit Auto Show
Date: 2/11/2010

The Detroit Auto Show held in mid-January 2010 was dominated by electric, hybrid
and small cars, grabbing center stage at the Detroit auto show in mid-January 2010,
as the industry adapts to a world reshaped by the Great Recession and
environmental worries.

The event demonstrated just how automakers are responding to this new reality.
Ford wants to build on its success in midsize sedans and re-ignite its small car sales,
while Hyundai aims to extend last year's triumph in budget-conscious models. GM
and Chrysler will start fresh with electric vehicles but also try to boost their small-car
credibility. Toyota hopes to solidify its dominance in hybrids.

The new crop of models must be successful if automakers are to reverse last year's
21 percent sales plunge. Mounting job losses, GM and Chrysler's bankruptcy filings
and the death of several iconic brands sent sales skidding to their lowest level since
1982.

Americans feel less wealthy -- and more certain that the trend toward higher fuel
prices remains a threat. It's a change U.S. automakers were slow to embrace -- and
it cost them the last two years as gas prices surged and consumers stopped
spending. Most Japanese and European car makers were also caught in the sales
downdraft, even though they depended less on pickup trucks.

In 2010, with frugality embedded in drivers' minds, automakers want to show off new
versions of smaller, less expensive cars, many of which get 40 mpg (17 kpl) on
highways. That also appeals to motorists concerned about climate change.

The show isn't exclusively about small cars. Detroit automakers also tried to revive
1960s-style car passion with muscle cars, a niche that's doing well.
Compared with last year's stripped-down affair, the show offered more glitter. GM
had an elevated floor for new cars, a change from 2009's carpet-over-concrete that
was just about everywhere.

One big display was a 37,000-square-foot (3,400-sq. meter) "Electric Avenue" on

the main floor, featuring 20 vehicles that run on kilowatts instead of gasoline.
Electrics were shown last year, but shared the spotlight with cars powered by
conventional engines.

"Last year we had that 'sky-is-falling' mentality, and everybody was running for
cover," says Doug Fox, an Ann Arbor, Michigan, car dealer and chairman of this
year's show, officially called the North American International Auto Show. "We are
seeing a little more investment made in the actual exhibits than last year."

Although auto sales improved at the end of 2009, the 41 new vehicles unveiled at
this year's show were down from last year's 50.

That's because Chrysler LLC, which normally shows five or six new vehicles, had
no debuts, and GM had fewer new vehicles because it is shedding the Pontiac,
Hummer, Saturn and Saab brands.

Here are some key trends at this year's Detroit auto show:

1. Small is Big

Small cars and smaller SUVs -- called crossovers -- made up only 21 percent of
U.S. sales in 2003. But last year, they rose to 32 percent and are expected to grow
to 36 percent in 2013.

General Motors Co. showed off the new Chevrolet Aveo subcompact. The Aveo
has been given a more powerful engine, and a lower grille and 19-inch tires for a
tougher appearance. The four-door Aveo, along with Ford Motor Co.'s new Focus
and Chevrolet Spark minicar, will be part of a small-car blitz. All three will get near
40 mpg (17 kpl) on the highway.
"The new paradigm of the American passenger car is no longer great, big
rear-wheel-drive luxobarges," says Aaron Bragman, an auto analyst for the
consulting firm IHS Global Insight in Troy, Michigan "It's small, efficient and
upscale."

2.Electric Buzz Gets Louder

Much of the show's buzz came from electric vehicles, which have jumped off the
drawing board and onto the convention floor. Several big automakers plan to sell
them in late 2010, giving the broader public its first chance to buy cars that rely
more on electrical outlets than gas pumps.

The big draw is the chance to stop burning gas and drive a more environmentally
friendly car, but the cars are expensive.

Nissan Motor Co.'s rechargeable Leaf, due in showrooms late this year, will make
its first appearance inside a U.S. auto show. The Leaf is purely electric, using just a
rechargeable battery for power. But its expected cost is about US$30,000.
Chevrolet's Volt, unveiled three years ago and for sale this fall, made a
reappearance at the show. It costs about US$40,000, although there are up to
US$7,500 in tax credits available.

China's BYD Co. LTD, which has the backing of billionaire investor Warren Buffett,
showed the F3DM plug-in hybrid compact sedan and the new e6 that could come to
the U.S. late this year.

Among the Europeans, BMW AG unveiled an electric concept car. Toyota, whose
Prius has dominated gas-electric hybrid sales across the globe, showed a new
hybrid car.

Unlike the last few years, Chinese automakers largely skipped the show, perhaps
because they're focusing on their own country's explosive sales growth. Still, any
car maker that wants to grow must focus on the U.S., where Asian manufacturers
collectively grabbed a bigger chunk of the market than Detroit manufacturers for the
first time last year.
 One floor below the main level, people could ride with a professional driver in
electric cars on a tree-lined course, another sign of the dramatic transition from
internal combustion engines to electric.

3.Swing Back to 60s Muscle

Muscle cars, while a small part of the market, sold relatively well last year with
the Mustang outdueling the Camaro for the top sales spot. Each automaker
sold more than 60,000 of the cars.

Ford put a bigger, more powerful V-8 into the Mustang, while GM showed a
Chevrolet Camaro convertible muscle car and a sporty GS version of the Buick
Regal midsize sedan.

New designs for both small and performance cars generally are following
trends toward smaller windows and higher door lines that rise from the hood to
rear. Side and hood creases in the sheet metal are designed to make cars
appear as they are moving even while still.

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 Taiwan Government Enhances
Lithium Battery R&D for Electric
Vehicles Date: 2/24/2010

The Taiwan government has been drafting a technology project to counsel

domestic electric vehicle makers to focus on developing the technologies of
lithium battery.

To raise the competitiveness of the industry of lithium battery for electric

vehicles (EVs) in Taiwan, besides increasing subsidy for the research and
development of lithium battery, the Taiwan government has been drafting a
technology project, aiming to counsel domestic EV makers to focus on
developing the technologies of lithium battery, such as accelerating the
charging speed and improving battery’s safety.

According to Nomura company’s estimates, the demand for lithium battery will
expand with the growth of the EV industry, and by 2015 the scale of the global
EV lithium battery market can reach US$12.3 billion.

The US government has also predicted that the market shares of EVs in the
global automobile market will reach 6% by 2015 and 11% by 2020.

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 Taiwan to Step Up Development of
Clean Tech and Electric Vehicles
Date: 1/28/2010

The Taiwan government will collaborate with the private sector to accelerate the
development of clean technology and electric vehicles.

The Taiwan government will collaborate with the private sector to quicken the pace
of developing green technology by capitalizing on Taiwan's development potential,
Taiwan's top economic planner, the Council for Economic Planning and
Development (CEPD) said on Jan. 11.

The CEPD came up with the proposal after McKinsey & Co. suggested that the
United States and China, as the top two largest energy users, importers and
polluters, should jointly develop electric vehicles, concentrated photovoltaic and
carbon capture and storage (CCS) devices, among other emerging green tech
innovations in order to help curb global climate change.

McKinsey & Co., a global management consulting firm, predicted that if the U.S.
could invest US$50 billion and China could invest US$28 billion by 2030 to
collaborate on developing electric cars, then by that time, the market share would
account for 46 percent of the U.S. vehicle market, and the car would have a market
share of 62 percent in China.

That would result in a reduction of 18 percent in U.S. oil imports and a reduction of
16 percent in Chinese oil imports, according to McKinsey & Co.

Facing the shared global challenges of climate

Taiwan's electric vehicle parts makers have been tapping into the global market,
while the electric vehicle sector has been listed by the government as one of six
emerging industries for priority development, according to the CEPD.
 In keeping with the growing global trend of the concentrated photovoltaic
industry, about 70 Taiwanese concentrated PV companies have invested in the
upstream, midstream and downstream chains of the industry, providing a
complete industry supply chain and creating a niche for Taiwan, the CEPD
added.

The development of the CCS technology in Taiwan is still in the early stages
and the Ministry of Economic Affairs will form an alliance of CCS technology
research and development aimed at developing Taiwan's own technology and
catching up with international progress in CCS technology research, according
to the CEPD.

Facing the shared global challenges of climate change, Taiwan has a

responsibility to cut carbon emissions, the CEPD added.

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 Taiwan’s Tong Yang Group Grabs the
Chinese Auto Aftersales Market
Date: 3/18/2010

The Taiwanese Tong Yang Group has actively dived into the automobile
aftersales market as it anticipates the Chinese market to grow explosively in 5
years.

Taiwan’s Tong Yang Group has anticipated that China’s automobile aftersales
market (AM) would grow explosively in five years and thus has actively dived
into the production of AM products. Tong Yang has accelerated the building of
new factories in Nanjing, hoping to grab large shares of the fast-growing
aftersales market.

Tong Yang has been cultivating its auto-parts OEM market in China for years.
As the Chinese auto market went into a fast-growth period in 2001, its
aftersales maintenance market has also gone into a growth phase since 2006.
Tong Yang as a result has been aggressively seizing this market.

According to statistics from the International Organization of Motor Vehicle

Manufacturers (OICA), China produced 13.64 million automobiles last year,
surpassing the 10.43 million made by the US to become the largest auto sales
country in the world. China’s sales volume is expected to reach around 15
million this year, with a growth rate of 10%.

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 Taiwan’s Yulon and China’s Dongfeng
to Co-develop Electric Buses
Date: 12/31/2009

Taiwan’s largest auto maker Yulon Group has confirmed that it has signed an
agreement with China’s third biggest auto maker Dongfeng Motor to co-develop
medium to large-size electric buses and tourist coaches.

Yulon has announced recently that it would form a joint venture with Dongfeng
to assemble and sell Luxgen’s passenger cars in China, which include
multi-purpose vans (MPV), sport utility vehicles (SUV), sedans and
sub-compact cars.

Yulon expresses that after the joint venture is formed, Dongfeng Hangzhou
Motor Co., Ltd., which at the moment produces 30,000 medium to large-size
buses annually, will begin to sell electric buses to realize the Chinese
government’s “10 Cities with 1000 Vehicles Each” Policy and to put
alternative-fuel vehicles on the roads of 13 major cities in China as soon as
possible, covering Beijing, Shanghai, Chongqing, Dalian and Hangzhou.

Note: “10 Cities with 1000 Vehicles Each” Policy was brought up by the
Chinese government in 2008 which selects more than 10 cities in China each
year to put at least 1000 alternative-fuel public or government-owned vehicles
on the road. This policy is being implemented for three consecutive years.

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 Taiwan's Own Auto Brand LUXGEN
Shines in Dubai
Date: 2/3/2010

The Taiwanese auto-maker Yulon Group's own brand LUXGEN has shone
brightly at the 2009 Dubai Motor Show.

Riding on the global wave of green energy and environmental protection, the
Taiwanese auto-maker Yulon Group’s own brand LUXGEN has shone brightly
at the Dubai Motor Show held at the end of 2009. The company displayed
LUXGEN7 MPV, LUXGEN7 SUV, LUXGEN7 CEO and the electric vehicle
LUXGEN EV+, which attracted endless streams of people.

LUXGEN’s general manager K. C. Hu pointed out that LUXGEN EV+ was the
center of the show attention, because it produces zero-pollution. It is especially
special because whether it be the Dubai Motor Show or the 2010 Taipei
International Auto Parts and Accessories Show (Taipei AMPA) to be held in
April, LUXGEN EV+ is the only car on display that can be driven and moved
around.

Many distributors in the Middle East have already inquired about possible
collaborative opportunities in the future. Hu further stated that Dubai was
LUXGEN’s first step toward the global market and a gigantic stride for Taiwan’s
own brand and automobile industry.

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 Thailand Could Be a Top-Ten
Automaker by 2014
Date: 6/15/2010

Thailand may become one of the world's top 10 automotive manufacturers in

2014, with an expected capacity of 2.95 million units, according to the Thailand
Automotive Institute.

Director Wallop Tiasiri noted that one major hindrance blocking Thailand from this
achievement is the labor shortage. To accommodate the higher capacity, the
industry will need an additional 150,000 workers, he said.

After the institute's board meeting, chaired by Industry Permanent Secretary

Witoon Simachokdee, Wallop said on June 4 that there was a consensus that the
automotive industry will show continued expansion. While the capacity will rise to
2.95 million units in 2014, the actual output will hit 2.1 million, thanks to the
investment in five ecocar projects as well as expansion of other projects.

Thailand is now the 13th largest auto producer, and with the higher capacity its
ranking will surpass those of Spain, Canada and Mexico.

Opportunities abound for all partsmakers, but all concerned expect labor
shortages, as other industries will also be in need of more workers. The
partsmakers also have to contest with automotive manufacturers over workers. At
present, partsmakers need to pay at least US$9.2 as a daily wage.

The automotive industry now employs 450,000 workers: 95,000 in the assembly
plants and 355,000 in the partsmaking facilities.

According to Wallop, the institute estimates that an additional 150,000 workers

will be required to support the higher capacity in 2014.
The Office of Industrial Economics has urged the establishment of a training
centre. Under the JapanThai Economic Partnership Agreement (Jtepa), Japan
is committed to support the "train the trainers" program.

Wallop noted that worker efficiency must be enhanced, while many automakers
may opt for greater use of robots. Japan, where 10 million cars are produced
per annum, employs only 700,000 workers.

In 2010, Thailand expects to see output rise to 1.6 million units. Now orders are
piling up. The institute also believes that output will rise 15 percent next year,
above the normal annualized growth rate of 10 percent, thanks to the
introduction of new models like ecocars.

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 The Global Development Trend of
Electric Vehicles
Date: 3/30/2010

The global sales volume of electric vehicles is predicted to exceed 5 million by

2015. According to estimates by major international automobile manufacturers
and research institutes, the global sales volume of electric vehicles (EVs) will
exceed 5 million by 2015. The proportion of the more eco-friendly plug-in hybrid
electric vehicle (PHEV) and battery-electric vehicle (BEV) on the overall EVs
will also greatly increase from the current less-than 3% to 26%.

BEVs at the moment are still dominated by the NI-MH battery-equipped BEVs.
As the production cost of lithium battery decreases and the productivity rises,
lithium battery-equipped BEVs are expected to replace NI-MH battery-equipped
BEVs before 2012. BEV’s production is projected to break the one million-unit
mark by 2015, but will not be able to overtake “regular” hybrid electric vehicles
until after 2020.

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 The US Auto Market Is Recovering

Date: 6/10/2010

The American Auto News reported on April 1 that the auto sales volume in the
US increased 24% to 1,066,339 units in March compared with the figures of a
year earlier.

In particular, the financial situation of the three major US auto makers has
improved, and the auto manufacturing and auto-parts industries are recovering.

Ford announced lately that the company made US$2.1 billion worth of profit in
the first quarter of 2010. General Motor has also invested US$890 million in five
factories around the country. Chrysler has reduced its loss as well.

The well-known market research organization Global Insight has predicted that
the US economy will recover to its normal level by the end of 2010. The auto
sales volume in the US is expected to reach 14 million units in 2011 and return
to the level of 17 million units in the past within ten years.

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 Two Major Auto Infotainment Systems
Officially at War at 2010 CES
Date: 1/21/2010

The 2010 International Consumer Electronics Show (CES) held in Las Vegas
was in fact a major automakers’ battlefield. Two brand new auto infotainment
systems, which allow drivers and passengers to use hand-free phone,
text-message, and listen to music through voice-identifying system as well as
connect to iPhone and other mobile phone related equipment, were officially at
war at the show.

Not to let Ford’s SYNC system get too far ahead, KIA and Microsoft jointly
announced their co-developed UVO or “your-voice” system at 2010 CES.
Through the UVO system, drivers and passengers can make phone calls and
control auto stereo system by voice. The UVO system at the earliest will be
launched in 2011 to compete against Ford’s SYNC in the auto market.
UVO will be equipped in KIA’s Sorento in 2011 and the price has not been set.
Ford on the other hand has revealed that SYNC will be on Fusion and F-150 by
the end of this year at a price of US$400.

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 U.S. Partnerships Sought to Develop
Taiwan’s Electric Cars
Date: 6/24/2010

Taiwan is seeking joint ventures with U.S. entrepreneurs, as part of its efforts to
become a test center for electric vehicles, the Ministry of Economic Affairs (MOEA)
said on June 20.

As part of its efforts in this direction, the MOEA said, it will host an automobile
industry forum and exhibition on June 21-22 in the U.S. port city of Detroit, which is
known as the automotive center of the world.

The main aim of the event is to foster collaboration between U.S. and Taiwan
automakers to develop electric vehicles, the ministry said.
A delegation of Taiwanese business executives, led by Vice Minister of Economic
Affairs Huang Chung-chiou, headed for Detroit on June 19 to attend the forum and
provide information on potential investment opportunities in Taiwan's electric car
industry.

Huang told the Central News Agency prior to his departure that Taiwan is eyeing
long-term development goals in its search for collaboration or joint-venture
partnerships with major U.S. automakers.

Huang said that when he visits the U.S. auto giants GM and Ford, he will brief them
on the business opportunities that will open up in Taiwan after the cross-Taiwan
Strait economic cooperation framework agreement (ECFA) is signed this year.

At the forum, some 49 innovative products developed in Taiwan for assembled

electric vehicles and key vehicle modules will be put on display to show potential
U.S. investors Taiwan's R&D achievements in the field, he said.
"The two-day exhibition is expected to attract more than 100 North American
auto executives," Huang said.

Meanwhile, Lin Chuan-neng, deputy director of the MOEA's Department of

Industrial Technology, said Taiwan has set its sight on the Chinese and U.S.
electric vehicle markets.

"We will focus on the fields in which we have a competitive edge, such as
vehicle testing and examination and technological innovation," Lin said.

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US Congress Offers Grants & Credits
for Electric Cars Date: 6/2/2010

The US federal government would provide grants to help cities build the
infrastructure needed to support electric vehicles and to offer new tax credits for
buyers of those cars under legislation introduced on May 27 in Congress.

The bills in the House and Senate are designed to smooth the way for the electric
vehicles that are expected to start showing up at car dealerships in large numbers
this fall. Supporters hope to add 700,000 vehicles to the road that are powered
largely by electricity in the next several years.

The legislation will lead to "broad-based deployment of electric vehicles in this

country," said Democratic Sen. Byron Dorgan, one of the main sponsors of the
Senate version that has an overall cost of US$10 billion.

The government has several programs to spur the development of vehicles that
use little or no gasoline. That includes federal tax credits of up to US$7,500 for the
purchase of an electric vehicle and up to US$25 billion in loans earmarked for
manufacturers of alternative fuel technologies.

The Senate bill would allow up to 15 municipalities and cities to apply to the
Department of Energy for grants of up to US$250 million to build infrastructure
such as public recharging stations. The House version offers US$800 million to
five communities.

The Senate would let buyers in those areas to take an additional US$2,500 credit
for the purchase of an electric vehicle, bringing the total credit to US$10,000. The
House version gives a credit of up to US$2,000 for electric vehicle owners to buy
and install charging equipment.
The Senate version also proposes US$1.5 billion for research with the goal of
inventing technology such as a battery that can go 500 miles on a single
charge.
Most electric vehicles rely on batteries rather than gasoline engines for power,
though some hybrids combine the two. The batteries are recharged by
connecting the vehicle to an electrical outlet.

While most home owners could plug their car into a wall outlet, city dwellers
would have a harder time finding ways to recharge their cars since few towns
and urban areas have a network of public charging stations.

This is considered a major obstacle for the widespread adoption of electric

vehicles, which are ideal for city drivers, who usually take shorter trips that
would not exhaust the relatively short range of the batteries.

Chevy Volt, for example, which General Motors plans to sell in November, can
get up to 40 miles (65 kilometers) on the battery before a small gas engine
kicks in to recharge it. The Nissan Leaf, a purely electric vehicle expected to be
sold by the end of the year, can travel up to 100 miles (160 kilometers) before
needing to be plugged in.

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