BERTRAND MALLET - Inchcape

Peru Automotive OverviewStrong growth of thecar marketPremium segmentgrowing more rapidlythan rest of marketLow sales inpremium segmentoutside of LimaA very old car parcLow car penetrationStrong BMW brandSince 2005, the car market in Peru has grown by 374%,reaching over 97k new vehicles (TIV) in 2010Thanks to the increase of the average income and to theemergence of a middle-class in Lima, the premium segmenthas grown by 134% vs 230% for the market in general from2006 to 2010Outside of the capital, the premium segment has not yet trulytaken off. However, future growth in the regions should providean additional boost to the Peruvian premium marketDespite the high growth of the past few years, the average ageof the car parc is 15 years in Peru (strong opportunity in therenewal market)In parallel with the increase of GDP per capita, we expect tosee strong opportunity in the first time buyer marketBMW is the clear premium market leader in PeruThe high levels of growth in the premium segment and the high potential for further expansion make thePeruvian market very attractive for InchcapeSource: Global Insight