《China Auto》.pdfVIP

China/Hong Kong China Auto China Auto 21 October 2013 In the lap of luxury During our two-day auto dealerships visit to Shanghai last week, we China dealerships’ YTD stock performance found that luxury auto dealers are still very comfortable with the long-term China luxury vehicle growth story. The dealerships we Yongda spoke with all had the same priorities: grow higher margin aftersales services, increase insurance and financing commission income and selectively expand luxury brands. Zhongsheng Mercedes to see sales growth momentum. Audi/BMW/ Baoxin Mercedes YTD sales in China were up 20.6%/20.5%/ 7.9% YoY to 358k/285k/156k units in 9M13. Though Audi/BMW once again outperformed Mercedes, we share the Zhengtong view of many industry experts that sales growth momentum at Mercedes will pick up in 2014F/2015F because of its (15)% (10)% (5)% 0% 5% 10% 15% 20% 25% 30% 35% impressive model line-up including the face-lifted E-Class, the Source: Bloomberg new generation S-Class/C-Class and potential localized CLA/GLA. King of the SUVs – Range Rover still selling very well. Jaguar-Land Rover (JLR) 9M13 sales were up 23.9% YoY and September sales were up 46% YoY to 8.9k units. With the introduction of the new Ra