Events and Technologies Bring Happiness

　　Happy Events

　　1. Surge of sales

　　The reason for happiness: record-breaking sales

The annual sales in Chinese auto market totaled 14 million units with nearly 50% growth. In 2009, the development of Chinese auto market surged. Amid the depression caused by global financial crisis, China offered a fantastic legend.

　　2. Network

　　The reason for happiness: independent brands become mature

In 2009 some independent brands developed their own networks. Chery, Geely and other manufacturers classify sales networks according to the brands. Chery has introduced four brands and established four networks. And Geely has founded three networks. As to Chang’an Auto, there are two networks. Currently BYD owns three networks.

As the amount of models is increasing and the brands become mature, domestic automakers have to depend on the establishment of sub-networks to expand network and increase sales.

　　3. Consumer Credit

　　The reason for happiness: it is easier for people to realize their dreams

For those consumers who have trouble with cash, consumer credit is a good way to purchase vehicles. While such kind of phenomena has emerged in 2009, some automakers still make few efforts to develop that market. However, we have reasons to believe that since more and more financial companies which belong to automakers join in the market, consumers will enjoy more convenient and affordable loan services in the future.

　　4. Fuel Tax Reform

　　The reason for happiness: Drivers won't pay if they don't drive.

The State Council decided to implement the reform of refined oil from January 1 2009 and six additional charges were abolished. The more you drive, the more you pay. The less you drive, the less you pay. The policy is in accordance with such principles. Therefore the consumers who buy small vehicles and do not drive too much will get more benefits. If the annual mileage of a car is 15,000 kilometers and the fuel consumption in urban area is eight liters for 100 kilometers, it is estimated that a driver can save 1365 yuan every year.

　　5. Second and third-tier markets

　　The reason for happiness: a large gold mine

According to the statistics released by the State Information Center, in the first nine months in 2009, the growth in first-tier cities such as Beijing, Shanghai and Guangzhou is 34%. The growth in second-tier market is 41% and that of third-tier market is 51%. In 2009 the growth of smaller markets exceeded that of larger regions for the first time.

　　Happy Technology

　　1. New energy vehicles

　　The reason for happiness: New energy vehicles are available to ordinary people

In the early of 2009, The Notice of Demonstration and Popularization of Energy Saving and New Energy Vehicles was issued, which propelled the new energy vehicles to reach a higher level. Some automakers followed suit. But consumers are most concerned about whether the price of new energy cars can come down as well as how to solve the charging problem. The residents in Shenzhen will become the happiest and the most avant-garde. In the first quarter of 2010, the residents living in Shenzhen can drive electric cars.

　　2. Independent VVT

　　The reason for happiness: The progress of independent engines

In 2009 independent automakers introduced several models equipped with VVT engines such as Geely Vision, the Great Wall Xuanli, Junjie FRV, Hainan Mazda Huandong, and JAC Tongyue and so on. VVT engine can cut down fuel consumption and increase power. The introduction of VVT engines by domestic automaker is a challenge to the monopoly of joint ventures in terms of engine technology. It is also an important indication of technological progress of Chinese vehicles.

　　3. TSI and DSG

　　The reason for happiness: fuel efficiency and fun of driving

In 2009 Volkswagen promoted TSI and DSG in a massive scale in the domestic market and some models such as Golf, Magoten, Livina, and Octavia are equipped with TSI and DSG. The Chinese name of TSI means “gasoline direct-injection turbo engine". The biggest advantage of the technology is that power output will become higher while fuel economy will be improved. In Chinese, DSG refers to "dual-clutch transmission". The combination of TSI and DSG can be regarded as one of the most advanced engine technology which is both fuel-efficient and without losing the driving pleasure.

　　4. Turbo Engine

　　The reason for happiness: To enjoy tax concessions and strong power

The policies of purchase tax were issued by the government in 2009. The tax concessions supported the development of small cars and indirectly promoted a large number of automakers to launch small vehicles. In order to ensure that driving pleasure will not decrease during the energy-saving process, many European and American launched some turbo-charged cars equipped with 1.4T, 1.6T and other engines such as Golf 1.4T, Sagitar 1.4T and Regal 1.6T. The new Polo equipped with 1.2-turbo engine will be introduced into auto market in 2010.

　　5. The lightening of body

　　The reason for happiness: fuel-efficiency and safety

Lightweight body subverts the traditional idea that the heavier a car is the better quality it has. Based on the premise of ensuring safety, Lightweight body can reduce fuel consumption. In 2009, Mazda 6 implemented the lightweight body at first. Then the new Mercedes-Benz E-Class also used lightweight windshield, lightweight body structure lightweight aluminum alloy wheels and so on. The new Magoten also applied the new lightweight technologies, such as McPherson suspension system which is made of aluminum alloy. (Translator: Qinghua/Hanxin)

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