Remark: We exported 4,400 vehicles in March 2008, versus 2600 units in the same period of last year. As of Febuary 2008, we still have 10500 vehicles' order book on hand. At present, the sales volume of sedan and MPV is not high. It is mainly because of the following two reasons: 1. Great Wall Motor adopts the low cost and high profit business model which is based on the industry chain of core spare parts. Therefore, currently the low engine displacement sedan mainly focus on the quality and reliability before the self-manufactured engine and other spare parts become volume production. We expected that the sales volume of the sedan in the first half will increase rapidly following the facility of the self-manufactured core spare parts.
2. The Company’s marketing strategy for sedan and MPV is to build up the brandname initially, then we will aim at increasing our sales volume. As a new participant in the sedan and the MPV market, there is doubt about the success of Great Wall Motor in the market. However, we have confidence on it. Currently, our product’s quality of are apparently enhanced compared to the products of the same price range in the market. We would like to invite you to visit our 4S shop so you can find that our products are highly competitiveness with our competitors. The Company is building up its brandname at present, and it will not only target for the high sales volume by ignoring the product’s reliability and quality. The selling price and profitability of our first launched sedan, Gwperi, is lower than FLORID and COOLBEAR, which will be launched in the future. Based on the long-term strategies of Great Wall Motor, if Gwperi does not possess any quality and reliability, it will be difficult to achieve satisfactory sales in the higher profitability products in the future.
