The document summarizes an industry report on the automotive industry in Southwest China in 2018. It notes that overall growth in the Chinese automotive industry has slowed, with production and sales increasing only slightly year-over-year. Specifically in Chongqing, the automotive manufacturing industry experienced continuous declines in output and growth rates in the first half of the year. The report then provides a table summarizing 25 important news stories related to major automotive companies and developments in the industry in Southwest China during 2018.

1. Stone Tan Industry Report: SW
Automotive Industry Top Stories
2018 has been a challenging year for the automotive industry in Southwest China and the entire Chinese
automotive industry. According to the data released by the China Association of Automobile Manufacturers, from
January to September 2018, automobile production was 20.491 million and sales was 20.049 million, an increase
of 0.8% and 1.4%. Among them, passenger car production and sales were 17.35 million and 17.25.97 million, an
increase of 0.13% and 0.64%; commercial vehicle production and sales were 3,140,700 and 3,230,900,
respectively, an increase of 5.17% and 6.31%. Overall, growth has slowed compared to previous years.
Since the beginning of this year, Chongqing's automobile manufacturing industry has experienced a continuous
decline. In the first quarter, the growth rate of the automobile manufacturing industry decreased by 10.4%, and
the automobile production decreased by 18.3%. In the first half of this year, the growth rate of the automobile
manufacturing industry decreased by 9.4%, and the output decreased by 12.2%. Due to the lower production,
some small and medium-sized auto parts companies are directly facing a sharp decline in orders, and the rising
demand for raw materials and labor costs has intensified the operational risks.
Stone Tan Financial Leasing Co., Ltd. has always cooperated with auto parts companies to provide financing
services for auto parts companies. We focus on the development of the automotive industry and share our analysis
and data with our customers and friends. The following are some of the important news related to the
development of the automotive industry in Southwest China and the development of local car companies in
Southwest China in 2018. If you are interested in our report, you can follow our Wechat account for more
information.
November 2018
Top Automotive Stories for SW China
# Company Name City
News
Date
Category News Story
1
FAW,Dongfeng,
Changan
Wuhan
August
2018
Strategic
The three parties reached a cooperation agreement.
First, they will actively participate in the
establishment of the National Innovation Center for
Intelligent Networking in the field of forward-looking
common technology innovation, and jointly create a
“Forward-looking Common Technology Innovation
Center”.
2 Zoyte Ford
Jinhua ,
ZJ
Dec.
2017
Production
Zoyte and Ford signed a project investment
agreement of RMB 5 billion in Zhejiang, and will build
an electric vehicle in Zhejiang Jinhua. It is expected
to be put into production in September 2019.
3 Beijing Hyundai CQ
Oct.
2018
Production
Hyundai’s CQ Production is expected to reach
103,000 in 2018. The models currently produced
include the new Rena and ENCINO. LAFESTA is in
the mass production preparation phase and began
production on Oct. 26.
4
Beiqi New
Energy Vehicle
CQ
June
2018
Production
Chongqing Fuling started construction in February
2017 and designed an annual output of 300,000 new
energy vehicles. It will be completed and put into
operation within two years and is still under
construction.

2. 5
Brilliance
Xinyuan
Chongqing
Automobile Co.
CQ
August
2018
New Model
SWM Siwei G01 is listed. The SWM SV G01 is
positioned as a compact five-seat SUV, and has two
1.5T+6MT and 1.5T+6AT powertrains. There are 9
models.
6
Ningbo Jifeng
Auto Parts Co.
CQ
March
2018
R&D
Completed its commercial registration and is
constructing factory. Factory will be based in
Liangjiang New District (Yuzui).
7
Xiaokang /
Jinkang New
Energy
CQ
August
2018
New Model
Golden Fruit EV-SF5 will start the production car
experience as early as January next year and launch
in the third quarter of 2019.
8
Xiaokang /
Jinkang New
Energy
CQ
Sept.
2018
Other
The Jinkang New Energy Production Project has
officially obtained the qualification for the production
of pure electric passenger vehicles (Double
Qualification).
9
Xiaokang /
Jinkang New
Energy
Indi
ana
US
A
Sept.
2018
Production
SF Motors' $160 million plant will be operational by
the end of 2020 for the production of electric vehicles
in North America. It is expected to accept the booking
in the second half of this year and deliver it in 2019.
10
Continental
Group
CQ
June
2018
R&D
ITs new R&D plant will focus on “chassis and safety
system”, “powertrain system” and “body electronic
system” in the automotive field. The center is
expected to be put into use by the end of 2018. By
2020, the number of engineers will reach 400, and by
2025 it will grow to 1,000.
11
Italian UFI
Group
CQ
June
2018
Production
The investment amounted to RMB 106 million and is
expected to be put into production in the first quarter
of 2019. The new plant mainly produces oil and
diesel filters for commercial vehicles and air intake
systems for passenger vehicles. It expects to exports
to the Russian and European markets.
12 BYD CQ
August
2018
Production
BYD will start production of 20GWh battery project in
Chongqing
13 Volvo Chengdu
Che
ngd
u
October
2018
Production
Polestar 1 will be launched in Europe in mid-2019. Its
Chengdu manufacturing plant will be capable of
handling carbon fiber structures and is under
construction. Polestar 2 will be launched between
2019 and 2020.
14
French Peugeot
Citroen Group
Heb
ei
Septembe
r 2018
New Model
Changan Automobile and PSA Group signed a
cooperation agreement in Chongqing, which will
carry out comprehensive cooperation in the field of
pickup trucks to jointly develop a new pickup truck
platform. The two companies will jointly build a new
pickup platform in Hebei, dedicated to the production
of light commercial vehicles and one-ton pickup
trucks. The first product is expected to go into
production in 2020.
15
Zhejiang Geely
Holding Group
Che
ngd
u
October
2018
Production
The Geely BMA common car project is expected to
enter the pilot production phase in October 2019 and
will be put into production in 2020. The first
production model is the SUV of the BMA platform.
The total annual production is expected to be
300,000 units.

3. 16
Weichai
Power
Russia
Sept.
2018
JV
Russia's Kamaz Industrial and China Weichai Power
Co., Ltd. will establish a joint venture to produce
industrial engines, each holding 50%.
17
Weichai
Power
Canada
Sept.
2018
M&A
Weichai Power invested 1.2 billion Hong Kong dollars
in Canadian fuel cells company (Ballard Power
Systems)
18
Dana
Corp.
CQ
Oct.
2018
Production
Dana (Chongqing) Transmission Technology Co., Ltd.,
which covers an area of 7,500 square meters, has been
scheduled to start production in the fourth quarter of
this year and is expected to reach a total capacity of
approximately 200,000 units per year by 2020.
19
Chaoqun
Industrial
Co.
CQ
Sept.
2018
Production/
R&D
As of August this year, Chaoqun has applied for 32
patents, of which authorized patents have 15 pieces, 7
utility model patents and 6 invention patents. In
particular, the fully-coated aluminum wheel hub
developed by the company has won the “Chongqing
Major New Product” award in 2017.
20
Chongqin
g Golden
Queen
New
Energy
Automobil
e
CQ
October
2018
Production
Newly built production plants, experimental workshops,
testing workshops/commissioning, and the first
complete vehicle will be off the assembly line. By then,
it will reach an annual production of 10,000 electric
vehicles.
21
Yinlong
New
Energy
Chengdu
Industrial
Park
Chengdu
August
2018
Production
In the case of constant volume, lithium titanate batteries
have achieved successful R&D production from 25Ah
capacity to 40Ah capacity. In the future, more “Chengdu
Made” new energy batteries will be sold all over the
world.
22
Great Wall
Motor
CQ
Dec.
2017
Production
The project preparation period is 18 months, and it is
planned to be completed and put into production in the
second half of 2019.
23 Changan CQ
October
2018
New Model
Changan Automobile released the "Shangri-La Project",
aiming to complete the construction of three new
energy-specific platforms by 2020 through the four
strategic actions of "100 billion operations", "10,000
people research and development", "partnership plan"
and "extreme experience"
24 Changan Nanjing
October
2018
Production
Changan Automobile will spend 4.79 billion yuan to
build a new energy vehicle manufacturing base in
Nanjing. After completion, the total annual production
capacity will be 240,000 units, of which the first phase
design capacity will be 120,000 units, which will be put
into operation in 2020.
25
Changan
Ford
CQ
August
2018
New Model
The domestic model is Lincoln Aviator, which will be
available for sale in the second half of 2019.

4. About Stone Tan
In 2010, Stone Tan was established
in Chongqing to focus on financing
solutions to small and medium
sized businesses in Chongqing.The
company is currently focused on
the financial leasing business
throughout China, with presence in
Chongqing, Anhui, Sichuan,
Jiangsu, Zhejiang, and Hong Kong.
Follow us on Wechat!
重庆谈⽯融资租赁有限公司，是由“谈⽯中国⾦
融投资有限公司”与“重庆渝富控股集团有限公
司”共同出资组建。
Stone Tan Financial Leasing Co. was jointly
invested by both Stone Tan Financial Investment
Company and Chongqing Yufu Assets
Management (Group) Co. Ltd.
主营业务 Key Business Types
直接融资租赁，售后回租，委托租赁，管理咨
询，财务顾问
Direct Leasing, Sales Leaseback, Entrusted Loans,
Management Consulting, Financial Advising
China HQ - Chongqing
Address: 61 Dongsheng Road 16th
Floor
Chongqing, China 400023
Tel: +86 023-88197891
Stone Tan Anhui
Address：B&C 11th floor, No 1
Building, CBD Central Plaza, No 369,
ChangJiang Road Middle, HeFei,
Anhui, China
Phone：+86 551 62851935/936/937
Shanghai Office
Address：398 Tianlin Road (Building
A, Floor 2)
Phone：＋86-21 54504666
Hong Kong Office
Address：Unit 2104, 21/F, Tower 2,
Lippo Centre, 89 Queensway, Central,
Hong Kong
Phone：+852 27355188