Daimler Business in China · Daimler Business in China Hubertus Troska, Chairman & CEO of Daimler...

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Daimler Business in China Hubertus Troska, Chairman & CEO of Daimler Greater China

Content

2 J.P. Morgan China Submit 2014

China Economy & Market 1

2 Presence of Daimler in China

China: 2nd largest economy with >$9 trillion GDP, economy maintained a stable and moderate growth

3

China Economy & Market

J.P. Morgan China Submit 2014

China Economic Growth – GDP YTD, Volume in Trillion RMB, real growth in % to year ago

World Economic Growth – GDP real growth in % to year ago

Source: National Bureau of Statistics of China Source: Economic & Market Intelligence (S/EM) - March 2014

Q1 2014

7.4% Q1 2014

7.4%

Automotive production volume reached almost 100 times than that of 30 years ago

4

China Economy & Market

J.P. Morgan China Submit 2014

China Automotive Production Volume in thousands units

240 1,062

13,791

22,117

The 10 million Vehicle (2009)

The First Vehicle (1956)

As the largest automotive market worldwide, China reached 22 million units auto sales in 2013

5

China Economy & Market

J.P. Morgan China Submit 2014

volume in thousands units FY 2013

Sales Volume

FY 2013

YoY Growth

YTD April 2014

YoY Growth

PV 16,224 +19% +12%

Truck 2,644 +10% +4%

Van 2,950 +4% +6%

Bus 250 +5% -1%

Total Market 22,069 +15% +10%

Source: China Association of Automobile Manufacturers

And China will continue to top the global automotive market

6

China Economy & Market

J.P. Morgan China Submit 2014

China PV Sales In million units

China Truck Sales In million units

Source: IHS Automotive Q1 2014

World No#1 World No#1

Content

7 J.P. Morgan China Submit 2014

China Economy & Market 1

2 Presence of Daimler in China

Daimler in China

8 J.P. Morgan China Submit 2014

Beijing

Fuzhou

Shenzhen

Daimler Trucks

Production and

Distribution

Mercedes-Benz Vans

Production and

Distribution

NEV Development,

Production and

Distribution

Mercedes-Benz Cars

Distribution

Auto Finance

R&D

Production

9 J.P. Morgan China Submit 2014

Auman Trucks

Continuously increased its sales performance and pursues an ambitious growth plan for the next years

10

Auman Trucks

J.P. Morgan China Submit 2014

Auman (BFDA) HDT Domestic Sales Development

Volume in thousand units, Market share in percent

Auman HDT achieved highest annual growth among Top 5 OEMs

11

Auman Trucks

J.P. Morgan China Submit 2014

Top 5 OEM HDT Domestic Sales 2013

Volume in thousand units, annual growth rate in percent

+27% +32% +27% +19% +36% +33%

Sources: Domestic HDT sales volumes are based on CAAM minus China Customs export sales / Auman domestic sales is provided by BFDA

12 J.P. Morgan China Submit 2014

Mercedes-Benz Trucks

Mercedes-Benz Truck remains No.1 European Importer in China with market share of 65% in 2013

13

Mercedes-Benz Trucks

J.P. Morgan China Submit 2014

Mercedes-Benz Truck Sales Development

Volume in units

China HDT WEU Segment in 2013

SoM in percentage

65%

MB Truck in China is strong in following segments

14

Mercedes-Benz Trucks

J.P. Morgan China Submit 2014

Oilfield

Logistics: Dangerous Goods Logistics: SLT Logistics: E-Commerce Logistics: Cold-Chain

Concrete Pump Firefighting

Daimler in China

15 J.P. Morgan China Submit 2014

Beijing

Fuzhou

Daimler Trucks

Production and

Distribution

Mercedes-Benz Vans

Production and

Distribution

16 J.P. Morgan China Submit 2014

Mercedes-Benz Vans

Renewed strong sales growth in 2013

17

Mercedes-Benz Vans

J.P. Morgan China Submit 2014

Mercedes-Benz Vans Retail Development

Volume in units

Mercedes-Benz Vans Retail in 2013

Model mix in percentage

Viano

Sprinter

17%

36%

47% Vito

Daimler in China

18 J.P. Morgan China Submit 2014

Beijing

Fuzhou

Shenzhen

Daimler Trucks

Production and

Distribution

Mercedes-Benz Vans

Production and

Distribution

NEV Development,

Production and

Distribution

19 J.P. Morgan China Submit 2014

DENZA

DENZA World Premier at Auto Beijing 2014

20

DENZA

J.P. Morgan China Submit 2014

Up to 300 kilometers

driving range

DENZA: the safest, most reliable, and most convenient electric vehicle

21

DENZA

J.P. Morgan China Submit 2014

Over 1.2 million

kilometers testing C-NCAP 5 Stars

Easy access to license plates, central and local subsidies

22

DENZA

J.P. Morgan China Submit 2014

MSRP starts from

369,000 RMB

Customer price in Beijing starts from

255,000 RMB

Exemption from standard license plate lottery in Beijing

Free license plates in Shanghai

Dedicated dealerships in Beijing, Shanghai and Shenzhen for DENZA

23

DENZA

J.P. Morgan China Submit 2014

Beijing

Shanghai Shenzhen

Daimler in China

24 J.P. Morgan China Submit 2014

Beijing

Fuzhou

Shenzhen

Daimler Trucks

Production and

Distribution

Mercedes-Benz Vans

Production and

Distribution

NEV Development,

Production and

Distribution

Mercedes-Benz Cars

Distribution

Auto Finance

R&D

Production

25 J.P. Morgan China Submit 2014

Mercedes-Benz Cars

Mercedes-Benz with positive momentum in 2013

26

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

Mercedes-Benz Cars Retail Development

Volume in units

R-Class

China as #1 market

12,700 units retail

S-Class

China as #1 market

22,000 units retail

GLK-Class

China as #1 market

41,500 units retail

Strong position in SUV segment (M-/GLK-Class)

27

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

Luxury SUV Segment Competitor Analysis

Retail sales in thousand units

Source: Competitor Retail figure from Press Release

The smart story continues with 5 years of success

28

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

smart Retail Development

Volume in units

smart, A-Class, S-Class and R-Class are category winners in AMS CHINA BEST CARS 2014 Survey

29

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

Best Luxury Cars: S-Class

Best MPV: R-Class

Best Compact Car: A-Class

Best Micro Cars: smart

Mercedes-Benz dominates 2013 China Initial Quality Study

30

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

Best in Luxury Segment Brand Ranking for China Initial Quality

Best in Entry Luxury Segment

We do our homework and we’re determined to pick up the pace in China

31

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

Extension Product Portfolio Expansion Dealer Network

Extension Local Production Leverage Financial Services Extension Local R&D

Integrated Sales Organization

Integrated sales organization put locally produced and imported Mercedes cars under one roof

32

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

We do our homework and we’re determined to pick up the pace in China

33

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

Expansion Dealer Network Integrated Sales Organization

Accelerate the expansion of Dealer network in 2013 and 2014 with focus on new cities in lower tiers

34

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

Mercedes-Benz PC Network Development

Number of outlets, including AS only outlets +100

+75

Dealer network expansion will be further accelerating not only in quantity but also in quality

35

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

Guangzhou 2008: 1,500 m2

8,400 PTDs

Chengdu 2013: 5,000m2

55,000 PTDs

Xi’an 2012: 900m2

6,300 PTDs

Beijing (Currently = 1,800m2)

2017: 10,000m2

110,000 PTDs

Shanghai (Currently = 1,221m2)

Q2 2014: 11,250m2

140,000 PTDs

Existing Training Center

Extended Training Center

PTD: per training day

New Shanghai TC Opening Ceremony 22 July 2014

We do our homework and we’re determined to pick up the pace in China

36

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

Extension Product Portfolio Expansion Dealer Network Integrated Sales Organization

In 2013, we celebrated 7 product premieres in China

37

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

New A-Class LWB E-Class Facelift New S-Class

New CLS Shooting Break E-Class Coupe Facelift New GL-Class C-Class Coupe

Our flagship – the new S-Class

38

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

The facelifted E-Class repositioning

39

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

All New C-Class Long Wheelbase World Premiere at Auto Beijing 2014

40

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

The New CLA-Class

41

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

And we will expand our line-up of locally produced cars in China with a new compact SUV: the new GLA

42

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

Continue product offensive: more than 20 new/ facelifted models through 2015

43

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

+

We do our homework and we’re determined to pick up the pace in China

44

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

Extension Product Portfolio Expansion Dealer Network

Extension Local Production

Integrated Sales Organization

Extension of production capacity at BBAC

45

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

MRA (2.0 million m2)

R&D

Center

Engine Plant (0.6 million m2)

MFA (2.26 million m2)

The first Mercedes-Benz engine plant out of Germany celebrated grand opening in November 2013

46

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

€1 billion capacity expansion signed witnessed by German Chancellor Merkel and China President Xi

47

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

We do our homework and we’re determined to pick up the pace in China

48

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

Extension Product Portfolio Expansion Dealer Network

Extension Local Production Extension Local R&D

Integrated Sales Organization

Several new R&D functions are in a build up and qualification phase

49

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

Advanced Design Trends & Innovations Telematics & Infotainment

Advanced Engineering Localization / Development Engine / Testing

We do our homework and we’re determined to pick up the pace in China

50

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

Extension Product Portfolio Expansion Dealer Network

Extension Local Production

Integrated Sales Organization

Leverage Financial Services Extension Local R&D

“Best Auto Finance Product” Award 2013! the 3rd time for MBAFC to receive such award since 2011

51

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

In 2014, Mercedes-Benz has successfully launched the all-new Agility Lease for the Chinese market

52

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

Guaranteed Minimum

Future Value

Rental

Affordability

Pre-Payment

Flexibility

3 Options at Contract End >> Purchase / Trade / Return

Daimler AG is 12% shareholder in Chinese partner BAIC Motor

53

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

Mercedes-Benz is on the path to growth

54

Mercedes-Benz Cars

J.P. Morgan China Submit 2014

Mercedes-Benz Cars Retail Development > 300,000

55 J.P. Morgan China Submit 2014

Thank You!