The momentum of CHINA Eric Apode

Transcription

1 The momentum of CHINA Eric Apode June, 2010 Investor Relations James Palmer James.palmer@mpsa.com

2 This presentation may contain forward-looking statements. Such forward-looking statements do not constitute forecasts regarding the Company s results or any other performance indicator, but rather trends or targets, as the case may be. These statements are by their nature subject to risks and uncertainties as described in the Company s annual report available on its Internet website ( These statements do not reflect future performance of the Company, which may materially differ. The Company does not undertake to provide updates of these statements. More comprehensive information about PSA Peugeot Citroën may be obtained on its Internet website ( under Regulated Information. China June,

3 Summary China : the biggest market worldwide Chinese Market PSA Peugeot Citroën in China Overview Our range of products The 4 pillars of our development in China The China Tech Center China June,

4 China : The Biggest Market Worldwide Chinese Auto Market in 2009 Strong impact of the new regulations on small engines on the passengers cars market LCV : Boom of the mini vans market (+96%), thanks to the policy aimed to accelerate the sales of vehicles in rural areas. thousands Milliers VPassenger cars Croissance VP Growth rate VU Croissance VU Light commercial vehicles Growth rate ,8% 59,7% ,1% 29,1% ,2% ,9% ,1% 11,4% ,7% -11,4% China June,

5 China : The biggest Market Worldwide 2009 Market Provincial segmentation The Eastern coastal provinces remain the main markets in China. In 2009, Shandong (9,3% of the market / +70,2%) became the biggest provincial market in China before Guangdong(8,7% of the market / +24,4) The inner land provinces like Jiangxi, Sichan, Shaanxi, Ningxia have the strongest growth rates. Market share by province Growth rate by province 2,2 % 63,8 % 1,8 % 63 % 3,5 % Beijing : 6,8 % 48 % Beijing : 48,9 % 1,3 % 0,1 % 1,1 % 0,4 % 2,7 % 5,6 % 2,9 % 0,6 % 2,9 % 4,3 % 2,4 % 5,4 % 1,5 % 2,8 % 1,2 % 2,5 % 1,7 % 8,7 % 9,3 % 8,3 % 2,3 % 8,2 % 1,8 % 2,6 % Tianjin : 2,3 % Shanghai : 2,5 % 37,5 % 26,8 % 92 % 52,2 % 58,6 % 57,7 % 88,3 % 19,6 % 70,2 % 61 % 77,4 % 54 % 61,8 % 58,2 % 81,4 % 60,1 % 58,8 % 94,3 % 54,7 % 44,8 % 62 % 24,4 % 67,6 % 62,7 % Tianjin : 36 % Shanghai : 25,2 % 0,5 % 27,6 % China June,

6 China : The biggest Market Worldwide Top 10 auto markets worldwide Within 5 years, China progressed from the 5 th market in the world to the biggest USA USA CHINA JAPAN CHINA USA GERMANY JAPAN JAPAN UK GERMANY GERMANY CHINA RUSSIA BRASIL ITALY BRASIL FRANCE FRANCE ITALY ITALY SPAIN UK UK BRASIL FRANCE INDIA RUSSIA INDIA RUSSIA China June,

7 China : The biggest market Worldwide Big Market Low equipment rate 800 Passenger cars equipment rate Petit marché VP développé Canada Switzerland Australia Austria Spain Sweden Belgium Greece Netherlands Poland Czech Rep Portugal Romania Mexico Argentina South Africa Turkey Iran Petit marché VP non développé Malaysia Sth Korea Indonesia Moyen marché VP développé UK Russia India Italy France Brazil Petit - moyen marché VP en développement Grand marché VP développé Germany Japan USA Number of PC on the roads PC PC Passenger cars market China China June,

8 China : The biggest Market Worldwide Top 20 auto markets by 2021 By 2021, with 25 millions sales per year, the Chinese market will be 4 times bigger than the US market. It will represent one third of the auto sales worldwide. thousands CHINA USA RUSSIA BRASIL INDIA JAPAN GERMANY UK ITALIA FRANCE SPAIN IRAN KOREA MEXICO CANADA UKRAIN AUSTRALIA MALAYSIA BELUX ARGENTINA Source: PMT 29/10/2009 China June,

9 China : Specific expectations Chinese/European buyers comparison Chinese European First time buyer 80% 13% Male ratio 83% 67% 2 persons household 17% 52% Average number of person per household 3,3 persons 2,7 persons 1 car per household 75% 38% Manager or above 53% 19% Average age 35,4 years old 49 years hold Urban driver 89% 63% Compared to the European customer, the Chinese customer is much younger, lives in a city and buys a car for the first time. China June,

10 China : Specific expectations Europe : 50% Diesel, 63% hatchback or MPV s, 75% manual gearboxes Chine : 100% Gasoline, almost 75% Sedans, 50% AT Not the same segmentation of the market Different kind of cars 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% China 2009 Europe 2009 Mostly midsize to big sedans H M2 M1 B2 B1 100% 80% 60% 40% 20% 0% 6,6 4,1 16,7 72,5 11,5 8,6 13,1 49,8 13,3 China 2009 Europe 2009 Mostly small to midsize sedans station wagon Convertible coupe SUV MPV Hatchback Sedan China June,

11 China : Specific Expectations Differences in all details... Examples... Upgrading rear seats: rear seat used mainly by children in Europe and China by adults because of the difference in rates of equipment Button to open the fuel flap inside the carrier in China (in China, employees help you to refuel your tank - the driver does not need to leave the cockpit at the gaz station) Taste for leather interiors - even in entry-level versions (both for statutory reasons, but also ease of cleaning) Tilt adjustment of front seat: Wheel in Europe (precision setting), handle China (speed of pitch) China June,

12 China : Specific Expectations Forecast evolution of Chinese Customers 2- Higher incomes of new vehicules buyers 1- More and more people who can afford to buy a car 3- New generation of buyers («Deng Xiaoping s reforms generation») Tomorrow s customers 4- More female buyers 5- More mature and 6- More and more white experienced buyers collars China June,

13 PSA Peugeot Citroën in China An Overview Peugeot Motocyles employees in China China June,

14 PSA Peugeot Citroën in China Locally produced Peugeot Cars Hatchback 207 Sedan Hatchback 307 Sedan China June,

15 PSA Peugeot Citroën in China Locally produced Citroën Cars C2 Hatchback C Elysée Hatchback C Elysée Sedan Xsara Picasso C Quatre Hatchback C Quatre Sedan C Triomphe C China June,

16 PSA Peugeot Citroën in China Imported cars Important regarding the Brands image 207 CC C4 Coupé 308 CC 407 SW Grand C4 Picasso 308 SW 407 Coupé C China June,

17 PSA Peugeot Citroën in China 2 nd biggest market for PSA Peugeot Citroën 31,6% 717 PSA Sales (thousands) PSA market share 17,8% 17,9% 14,1% 12,8% 13,6% 270 3,3% ,1% 10,4% 8,8% ,6% ,1% 8,6% 6,9% 2,2% France China Germany Italy UK Spain Brasil Belux Argentina Netherland Russia Austria Switzerland Poland Portugal vehicles sold in 2009 : +52% vehicles sold from Jan to Apr 2010 : + 63% Sales x2 within two years ( ) China June,

18 PSA Peugeot Citroën in China Our Strategy PSA Peugeot Citroën in China by to 10% of Market Share 2 millions vehicles per year A broader range of products : Sedans, MPV, LCV, Strong Brands Leader for low CO2 emissions Leader for sustainable mobility solutions Asia region, Managing Board member based in Shanghai China June,

19 PSA Peugeot Citroën in China The 4 Pillars of our development in China Reinforce our JV DPCA New Products : at least one new car per Brand and per year Increase market coverage New production capacities Increase market share A new partnership with Chang an No competition with DPCA Entry into new market segments, including LCV Reinforce Peugeot and Citroën Brands images Economies of scale New cooperation in terms of R&D Develop new technologies adapted to China Recruiting the most talented people in China Develop the China Tech Center To develop the vehicles which can meet Chinese customers expectations China June,

20 PSA Peugeot Citroën in China The China Tech Center - Shanghai Key Dates April 1 st 2008 : Launch of the project September 2008 : Opening of the center in a new tower, in the Caohejing Technological Development Zone in Shanghai April 2010 : Reveal of METROPOLIS, 1st concept-car developed by the China Tech Center Mission Development of vehicles and powertrain for the Chinese Market Main departments Vehicle Engineering Powertrain Design Quality Academic cooperation With the Tongji University Automobile College (Shanghai) With the China Europe International Business School (CEIBS) China June,