SORL Auto Parts, Inc. NASDAQ: SORL

1. SORL Auto Parts, Inc.NASDAQ: SORL Investor Presentation April 2006

2. Safe Harbor Statement

3. Corporate Profile Leading manufacturer of air brake valves for commercial vehicles in China Spin-off from Ruili Group which was established in 1987 Revenue $47 million in 2004; $64 million in 2005 Based in Wenzhou City, Zhejiang Province the “Hub of auto parts” in China major highway to reach Shanghai within 5 hours 1295 employees

4. Market Data and Valuation

5. Key Investment Highlights A fast-growing, profitable auto parts manufacturer in coastal China No. 1 market share in China of the overall growth in the Chinese auto industry Capitalize on its abilities to manufacture at comparatively low costs to increase its international export business

6. Industry Overview Auto penetration in China is currently at only 2%, compared with the 50% -60% penetration in US, Europe, and Japan. Already the world’s 2nd largest auto market after the U.S. and surpassed Japan in 2005 Chinese Auto part sales totaled at US$50bn in 2004, expected to be $86 billion by 2010 Domestic auto part market: US$40bn in 2004 Growing export market: China vehicle and parts exports to grow from US$10bn in 2004 to US$40bn in 2010 or annual growth rate of 27%

7. SORL Industry Leadership No. 1 market share (21%) in heavy-duty vehicle air brake valves in China 18% share in the OEM air brake valve segment, ranked No. 1 in China: supplied to OEM customers such as FAW, Dongfeng Motors and Beiqi Foton etc. 25% share in the replacement air brake segment, ranked No. 1 in China Production in 2005: 7 million units

8. 2005 Industry Summary Passenger Vehicle: a volatile year that ended strongly Volume growth 24% YoY in 2005 Auto maker Profit decline 41% YoY Revenue increase 13% Net margin drops from 6.8% to 4.2% 4Q2005 1Mil sedans sold and posted a historical high Truck market: growth reset with sustainable margin 04 truck volume sales was strong due to gov policy 04 volume growth 45% YoY Truck sales declined sharply in 2005: 36% YoY drop Gov new regulation, continued overloading crack-down $142 million Chinese heavy-duty vehicle air brake valve market in 2005

9. Heavy Duty Truck Market Annual sales of heavy duty trucks grow CAGR 51% 2000-2004 Demand to grow 20% p.a. during 2006-2010 to reach 700,000 per year High entry barriers with government support Imports not as durable as local model due to the harsh road condition, lack of maintenance and low repair skill at local garages Export market grows steadily

10. 2006 Industry Outlook Passenger Vehicle: Auto shares around the world started well China became the main driver of Jan global sedan sales: 60% rise YoY Strong volume occurred without extensive price discount Analysts expect price cuts during new car launch season in April and May to be more moderate Capacity is still expanding and demand for economy car remains robust Unanimous forecast of 20% volume growth by Wall Street equity analysts Truck market: Infrastructure and regulation in favor of continuous growth Heavy truck sales decline has bottomed and recovery could be in 2006 Highway expansion by 38% during 2006-2010 (Chinese government 11th “Five-Year Plan” Period) The Ministry of Construction plans to complete its massive network of arterial national highways by 2008 prior to Beijing Olympics Trucks’ increasing role in solving logistic bottleneck Transition to Euro III standard likely boosts E2 truck sales ahead of 2007

11. Competition Landscape Highly fragmented market with over 4,700 registered auto component companies in China Customer relationship is the key; Price is not as sensitive as passenger vehicles Major domestic competitors CAFF: state-owned enterprise, older facilities, higher cost Weiming: Sino-foreign JV, higher production cost and lower performance-to-cost ratio VIE: fast-growing private company, no established aftermarket sales network International competitors Wabco, Knorr: Both companies’ products primarily for European and U.S. vehicles On average 2 times more expensive

12. Competitive Advantage

13. Major Products

14. Production

15. Research & Development Focus on development of new products : Clutch servo with inductive displacement transducer Automatic slack adjuster Loading sense proportion valve New Type Foot brake valve Transitioning to electronic controlled air brake valve products. 44 technical staff, including 32 engineers or senior engineers 1 patent, 2 licensed patents, 9 pending patent applications, a series of Know-How’s. Partnerships with leading automotive engineering institutes: Beijing Jiaotong University Tsinghua University E-Tech Technology Co., Ltd Zhejiang University Huazhong University of Science and Technology

16. Balanced Revenue Sources

17. Customers: OEM 47% of revenue from OEMs in 2004, declined to 32% in 2005 as sales from other segments expanded Total 39 OEM manufacturers including all of key truck makers in China Solid long-term relationships, with SORL’s five largest customers (also top Chinese truck makers) accounting for 57% of total OEM sales in 2005 Annual sales contracts are generally signed at the beginning of the year with quarterly review Two largest customers, FAW and Dongfeng, accounted for more than 53% of the Chinese total heavy duty truck sales in 2005

18. Customers: OEM

19. Customers: Aftermarket $12.2 Million in ‘04 to $20.2 Million in ‘05 26% of revenue in 2004 to 32% of revenue in 2005 27 authorized distributors Over 800 sub-distributors

20. Customers: Aftermarket

21. Customers: International $12.6 Million in ‘04 to $23.4 Million in ‘05 27% of rev in 2004 to 36% of rev in 2005 Mostly replacement but begin to explore OEM opportunities: TATA Motors 3 authorized sales centers (Australia, UAE and USA)

22. Customers: International

23. Attractive Export Opportunity Current commercial vehicle air brake valves market size in the world: over $5 billion Growth of aftermarket air brake valves market: approximately 15% Global purchase trend: moving to China

24. Cost Control Main raw materials: aluminum and steel Economies of scale production and production technique optimization Down payment to suppliers to secure purchase price in a rising market ISO/TS16949 quality assurance system to discipline over 20 suppliers Closely monitored inventory management of other raw materials Reduction in spoilage

25. Financial Highlights

26. Growth Strategy OEM: Enhance brand recognition and develop relationship with other truck makers; cautiously explore opportunities in passenger vehicle domain Export: Strengthen presence overseas by establishing relationships with additional authorized distributors M&A and JV: Wenzhou is one of most active private economies in China Well known for its auto parts specialty in the nation Over 1400 auto parts companies can become potential M&A or JV targets Cost Control: Reduce material and energy consumption; strict measurement on waste Maintain high standard quality control

27. Management Team

28. Summary Maintained the No. 1 market share in the Chinese heavy-duty vehicle air brake valve sector Projected CAGR of 30% and 27% in sales and earnings from 2005-2008 Globally recognized ISO/TS16949 certification, high-quality products and rapidly growing export sales Heavy-duty vehicle market, driven by China’s rapid economic growth and mass construction, gives SORL a solid ongoing sales base Attractive growth opportunities through expansion into international market & domestic sedan market

29. Investor Contact