Contents. R&D background Product positioning Product analysis

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1 New Tiggo3

2 Contents R&D background Product positioning Product analysis

3 R&D capacity - R&D Center Chery Jaguar Land Rover Shanghai R&D Center (CTCS) International R&D structure and system; world leading R&D team with cutting-edge vehicle manufacturing technologies; able to combine actual needs of users in the international market Vehicle-manufacturing philosophy oriented towards young people in the future Share resources with Jaguar Land Rover in brand building philosophy, mode and technologies 1

4 R&D capacity - R&D Center Design philosophy - Stylish and practical SUV model Guided by Chery strategy 2.0, we take positive R&D system and upgrade 183 items in 12 categories so that senses intelligent technology can be upgraded for you to enjoy the fund of driving urban SUV 2

5 R&D capacity - Technical reforms Chery has introduced advanced systematic thinking. By inheriting the balanced technology, Chery builds the high-tech, standard and forward-looking iauto balance technology platform of intelligent manufacturing With advantages in sustainable development, iauto will secure excellent driving experience in terms of vehicle design, power, control, human-oriented technology, safety configurations and manufacturing process Balance technology platform of intelligent manufacturing 3

6 R&D capacity Balance technology platform of intelligent manufacturing [CHERYSMA] M.B.C. - body matching tech 3R Body - Lightweight and crashproof body C.N.C. - Noise-reducing tech H.E - Home-like comfortable internal environment SW - Platform chassis system H.D.S Smart, dynamic and flow body appearance tech [ACTECO] Efficient and stable CVT DCT - Dry double-clutch transmission DVVT+CVT golden powertrain [CLOUDRIVE] 360-degree intelligent vehicle entertainment & info system C-cloud remote management & diagnosis system U.Only personalized internal environment selfadaptive system N.V.R. Natural audio cognition APP W.F.Y 24h one-button call for rescue 4

7 5 quality guarantees 1 Quality design 2 Production Manufacturing process 3 Critical testing Secured supply process 4 5 5

8 5 quality guarantees - Quality design V-shaped forward development process with international competitiveness Market demand Product definition Market capture Stable production Design target Engineering integration Platform Testing System Parts and components 6

9 5 quality guarantees - Testing equipment Testing Meisterbock & Cubing, the world-leading testing approaches often adopted by JV brands Meisterbock : Ensure body frame structure is precise, laying a foundation for precise appearance of the vehicle Cubing: Make matching and measuring analysis of prototype, evaluate appearance matching features of internal gap and surface difference, ensure external decorations have trivial and natural gap, and make sure major details have no defects at all 7

10 5 quality guarantees - Testing equpment Equipment Vehicle production process and equipment take the quality standard of highend JV manufacturers Automatic flexbile production line, modular production line layout, tech/equipment introduced from Germany and US, etc. ensure Chery has the same segment process/equipment with famous models such as KIA, HYUNDAI and TOYOTA 8

11 5 quality guarantees - production procedure Procedure of international standard and precise control of production procedure German quality evaluation system: high standard and focus on details 9

12 5 quality guarantees - critical testing Critical testings have been made in development process, including testing of durability and reliability, and testing of high temperature and altitude and cold weather Durability and reliability testings have been made in development process to ensure all problems can be found in pre-launch design and production and provide zerodefect high-quality products to the users, ensuring users are free of concerns in warranty period 10

13 5 quality guarantees - critical testing Finalize rack performance testing of 44 sub-systems and reliability rack testing of 26 sub-systems in the 38 vehicle systems. The others are vehicle carrying testing to ensure all 38 vehicle systems have their reliability effective tested Multiple inspection & testing items: Engine mounting system testing Instrument panel and control system testing Front seat system testing Rear seat system testing Rear bumper+trunk lid testing Vehicle 24-channel testing Vehicle 4-pillar testing Steering system reliability testing Frame system testing Suspension vertical system testing Sunroof system testing 4D2H system testing Window lift system testing 11

14 5 quality guarantees - Quality assurance International supplier system with accessories also used by major OEMs in the world, ensuring better quality German Bosch vacuum booster, ABS/ESP and electronic fuel injection system German Edscha four-door and trunk lid hinge German Schaeffler clutch system/vvt German Bentler thermal-formal stamped parts Swedish Autoliv airbag French Valeo lighting system German 3MNVH materials American BorgWarner chain drive system American Eton valve 12

15 Analysis of international market Chery performance in international auto market Russia KD Egypt KD Iran KD Iraq KD Malaysia KD Venezuela KD(3 个 ) Erdos Kaifeng car/truck Guiyang CV Dalian Changshu JV Shanghai CTCS Wuhu HQ Chery Brasil Uruguay KD Production facilities have annual capacity of 900,000 vehicles and engines, as well as 800,000 transmissions; 10 KD plants in other countries As of December 2015, Chery had reached markets in more than 80 countries and regions with 738 overseas sales networks and 940 service networks For 13 years in a row, Chery has been ranking No. 1 in terms of passenger vehicle export; in 2015, Chery export accounted for 26.7% of total exports of Chinese passenger vehicles 13

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