Executive Analysis of Global LPGCNG Vehicles Market

1 Executive Analysis of Global LPG/CNG Vehicles MarketM550-18 June 20102M550-18 DisclaimerFrost & Sullivan takes no responsibility for any incorrect information supplied to us by manufacturers or Market information is based primarily on interviews and therefore is subject to & Sullivan research services are limited publications containing valuable Market information provided to a select group of customers in response to orders. Our customers acknowledge when ordering that Frost & Sullivan research services are for our customers internal use and not for general publication or disclosure to third part of this research service may be given, lent, resold or disclosed to non-customers without written , no part may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the permission of the information regarding permission, write:Frost & Sullivan4 Grosvenor GardensSullivan HouseLondon SW1W 0 DHUnited Kingdom 2010 Frost & Sullivan.

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3 Related to the specific recommendations or view expressed in this research Executive Summary 9a. Top 7 key takeaways 10b. Comparative Analysis of OEMs 11c. OEM Market Share Analysis 12d. Supplier Market Share Analysis 132. Industry Challenges, Market Drivers and Restraints and Legislative Trends 14a. Industry Challenges 15b. Market Drivers and Restraints 16c. Key Asia Pacific Market trends 17d. Key European Market trends 18e. Key Latin American Market Trends 193. Market Metrics 20a. Scenario Analysis of LPG/CNG vehicle Market 21b. European Market Breakdown by OEMs 24c. Global LPG CNG vehicle OE Market 25d. OE Vs Aftermarket Analysis 264. Key Conclusions and Takeaways 27a. Key Conclusions and Takeaways 28 Table of Contents5M550-18 List of FiguresLPG/CNG Passenger Cars Market : Comparative Analysis of OEMs (Europe), 2009-2016 116M550-18 List of ChartsLPG/CNG Passenger Cars Market : Market Share of OEMs Based on LPG Car Sales (Europe), 2009 12 LPG/CNG Passenger Cars Market : Market Share of OEMs Based on CNG Car Sales (Europe), 2009 12 LPG/CNG Passenger Cars Market : Supplier Market Share based on Kit Revenues in OE and AM ( world ), 2009 13 LPG/CNG Passenger Cars Market : Industry Challenges ( world ), 2010-2016 15 LPG/CNG Passenger Cars Market : Market Drivers and Restraints ( world ), 2010-2016 16 LPG/CNG Passenger Cars Market : LPG Cars Units Shipment ( world ), 2008-2016 22 LPG/CNG Passenger Cars Market .

4 CNG Cars Units Shipment ( world ), 2008-2016 23 LPG/CNG Passenger Cars Market : LPG and CNG Cars Units Shipment by OEM (Europe), 2010 and 2016 24 LPG/CNG Passenger Cars Market : LPG & CNG Cars Units Shipment (OE) ( world ), 2009 and 2016 25 LPG/CNG Passenger Cars Market : CNG Cars OE vs AM Analysis ( world ), 2007-2015 26 LPG/CNG Passenger Cars Market : LPG Cars OE vs AM Analysis ( world ), 2007-2015 26 LPG/CNG Passenger Cars Market : Key Conclusions ( world ), 2009 287M550-18 OBJECTIVE OF STUDY:As a continuation of Frost & Sullivan s strategic research in the automotive powertrain domain, this research study is conducted to: Evaluate Global Market potential for LPG / CNG powered passenger cars Identify key Market trends, key legislative trends, key Market drivers, restraints and industry challenges for LPG / CNG powered passenger cars in the Global markets Analyze OEMs strategy towards emission reduction, future products powered by LPG or CNG and supplier / fitment of these systems Understand the future for LPG / CNG powered passenger cars globally Scope: Passenger cars that are partially or dedicatedly powered by either LPG or CNG.

5 Includes cars offered by OEMs with LPG / CNG system at the time of purchase and cars converted by customers to run on either LPG or CNG after the purchase of the car. Does not include light commercial Vehicles (vans). Geography: Key Global Markets Middle East Iran Asia India, Pakistan, Bangladesh, China, South Korea Europe France, Italy, Germany, Poland, Russia South America Brazil, Argentina, Venezuela, Rest of the world Base Year: 2009 Forecast Period: 2010-2016 Project Objective and Scope8M550-18 Research Methodology Frost & Sullivan Market Engineering MethodologyFrost & Sullivan Market intelligence is based on secondary and primary information, where primary research accounts for approximately 70 per cent to 80 per cent of the data collection process.

6 Secondary Research An extensive review of all the existing information available for this study has been conducted and some representative sources used are: Frost & Sullivan past publication and internal databases Trade press and associations Conferences attended on this topic and interviews conducted through networking eventsReview and Utilise Existing Information - Avoid spending time on information that is already available- Focus on bridging information gaps, confirm and/or challenge existing knowledge Primary Research For the purpose of this study, telephonic interviews were conducted with key vehicle manufacturers and suppliers. The interviews were targeted at the middle and top level management in purchasing, product development, research and development, product planning and marketing Ka, Fiat Panda, Opel Agila, Citroen C2, Peugeot 1007, Toyota AygoHigh LuxuryBMW 7-series, Mercedes-Benz S-Class, Audi A8, VW PhaetonHigh MediumBMW 3-series, Mercedes-Benz C-Class, Ford Mondeo, Volvo S40, VW PassatLow LuxuryMercedes-Benz E-Class, VolvoS80, Saab 9-5, BMW 5 Series, Jaguar S typeLow MediumBMW 1-series, Ford Focus, Alfa Romeo 148, Citroen C4, Toyota Corolla, VW Golf, Opel AstraMAVFord C-Max, BMW F3, Fiat Sedici, Opel MerivaSmallBMW Mini, Mercedes-Benz A-Class, Mazda2, Fiat Punto, Opel Corsa, Citroen C3, VW PoloSportsChrysler 300, Kia Opirus, Citroen C6.

7 Peugeot 607, Toyota CamrySuper LuxuryRolls Royce Phantom, Bentley Arnage, Mercedes MaybachSUVBMW X3, Mercedes-Benz M-Class, Honda CRV, Land Rover Freelander9M550-189 Executive Summary10M550-18 While India, Italy and Russia are the largest markets for LPG powered cars; Pakistan, Iran, India and Italy are the largest markets for CNG powered cars1 While India is set to be undisputed leader in growth for LPG and CNG car sales in the coming years the Iranian Market for CNG Vehicles is all set to reach 500,000 units by 2016 2 Average of 50% Cost savings per km compared to petrol and average of 30% Cost Savings per km compared to diesel, key driving force behind Global LPG/CNG Market growth3 Stringent CO2 emission norms and tightening ecological standards are expected to be among key drivers for LPG/CNG growth in developed countries, in particular EU4In Europe.

8 CNG is expected to have a sharp growth in the coming years however LPG is set to continue as a competitive option because of incentives by the EU countries due to heavy lobbying by the oil companies 5In South America, Colombia and Bolivia are set to be new growth poles for CNG powered cars. South American governments will replicate EU strategy for reducing GHG emissions62 main approaches for growth of CNG in Europe. Countries like Italy, Germany, Austria and Switzerland have well developed public filling networks while countries like Spain and France have increased fleet of urban buses and urban garbage trucks 7 Top 7 Take Away Facts About Global LPG/CNG IndustryM550-1811M550-18 Comparative Analysis of OEMs: Fiat, Ford, Renault, GM and Volkswagen planning LPG/CNG variants of key models for emerging marketsOEMFuelKey ModelsKey RegionsKey Suppliers2009 Share of Europe Car Sales2016 share of Europe Car SalesFiat GroupLPGP anda, Punto Classic, Idea, Grande Punto, Bravo, Delta, MiToEuropeLandi Renzo< , Punto, Grande Punto, Multipla, DobloEurope, India, BrazilMetatron55 %FordLPGF ocus, Fiesta, Transit, Mondeo, Falcon, IkonEurope, IndiaBRC1%5%CNGF ocus, C-Max, TransitEuropeCNG Technik0%GM GroupLPGM eriva, Corsa, Matiz / SparkEurope, India, Asia Pacific, AustraliaBRC & Landi , Astra CaravanEurope, IndiaLandi , Sandero, Clio, Logan MCV, MeganeEurope, IndiaAutogas2%4%CNGL ogan, KangooEurope, IndiaLandi Renzo< , Golf+, SharanEuropeLandi , T5, Passat, Passat Estate.

9 TouranEurope, USA, IndiaLandi Renzo2%Note: All figures are rounded; the base Year is 2009. Source: Frost & SullivanLPG/CNG Passenger Cars Market : Comparative Analysis of OEMs (Europe), 2009-201612M550-18 Market Share Analysis15%5%18%2%14%32%11%1%2%GMHyundai RenaultHyundaiFordFiatPSAM itsubishiOthers98%0%0%1%0%1%FiatVWGMD aimlerPSAO thers Renault, PSA and Ford will focus their efforts on the LPG Market in the years to come. Fiat is the biggest players in the CNG OE Market . New OEMs entering into this alternative fuel Market will enter into the LPG Market which will witness as much growth as CNG Market but without competition from OEMs like Fiat and German OEMs like VW and is thus more open. Volume OEMs like Fiat will develop more CNG models in the small and medium segment preferable for city driving conditions.

10 OEMs will follow a flexible approach encouraging more retrofitting of LPG rather than OE fitting to reduce the risks of the Market and also the uncertainties of incentives and taxation. More active association of LPG suppliers than CNG suppliers resulting in more lobbying by LPG association for favourable Passenger Cars Market : Market Share of OEMs Based on LPG Car Sales (Europe), 2009 LPG/CNG Passenger Cars Market : Market Share of OEMs Based on CNG Car Sales (Europe), 2009 Note: All figures are rounded; the base Year is 2009. Source: Frost & SullivanNote: All figures are rounded; the base Year is 2009. Source: Frost & Sullivan13M550-18 Others40%BRC (FSSC)27%Landi Renzo SpA33%Landi Renzo SpABRC (FSSC)OthersSupplier Market Share Analysis : Landi Renzo and BRC Global conversion kit manufacturer leaders Landi Renzo and BRC with their associated brands are leading the Market in terms of Global revenues from LPG / CNG kit sales to both OE and aftermarket.