A ugust 31, 2006

1. Global Change: Pls note 1 decimal for all percentages Whole file clone from HK000KDQ DONGFENG MOTOR GROUP CO., LTD As request by the client, all the project should include the legend Interim Report for 2006 August 31, 2006 HK000KL3

2. Highlights in 1H2006 Remarkable Market Performance of Newly Launched Products PV Growth Rate Higher than Industry Average Aggregate auto sales volume amounted to 358000 Units PV sales volume reached 233,000 units, representing 42.1% Y0Y growth, which is higher than industry average(36.5%) Several newly launched models, including new Dongfeng Nissan Teana, Dongfeng Peugeot 206, Dongfeng Citroen C-Triomphe and Dongfeng Honda Civic were well received by the market and became new growth driver for the Group. Favorable Financial Performance Turning Around of DPCA, with Remarkably Improved Operation Sales revenue YoY increased 9.8% Net porfit YoY increased68.75%1 Gross profit YoY increased 47.65% Net ROE YoY increased 7.2% In IH2006 sales volume broke through 100,000 units, recording a YoY increase of 38% and a profit of RMB190 ml, operational level remarkably improved 注1：2004年可比口径的净利润为13.2亿人民币，具体参见本报告第16页

3. I. Business Performance • Chinese Auto Industry Continues to Maintain Strong Growth Momentum • Well Positioned PV Business Entered a Fast Development Stage • Newly Launched PV Models Well Received by the Market • Production Capacity Expansion Projects Steadily Pushed Forward

4. 1.Chinese Auto Industry Continue to Maintain Growth Momentum Total Sales of Automobiles in China Total PV Sales in China1 000’ units 000’ units growth: 36.6% growth: 26.7% Total CV Sales in China 000’ units growth: 7.7% China Association of Automobile Manufactures (CAAM) Note1：According to CAAM’s segmentation, passenger vehicles include passenger car, MPV, SUVand cross-over vehicles

5. PSA Peugeot Citroën 2. Well Positioned PV Business Entered a Fast Development Stage Sales of PV－ Dongfeng Motor Co. Ltd Total sales of PV - Dongfeng Motor Group 000’ units Growth : 40% 000’ units Industry YoY growth rate：36.6% Growth : 42.1% Sales of PV- Dongfeng Peugeot Citroën 000’ units growth: 38% Sales of PV-Dongfeng Honda Automobile 000’ units Growth : 74% Each JCE’s strategic launching of competitive PV models for the target market enabled the substantial growth of the Company’s passenger vehicles sector Source: China Association of Automobile Manufactures (CAAM) Note: JCE refers to jointly controlled entities of the Company

6. 1 3. Continuous Launch of Popular Passenger Vehicles Models Continuous Launch of New PV Models Well-received and Recognized by the Market • Dongfeng Peugeot Citroen Automobile Company Ltd • On March 6, Dongfeng Peugeot 206 was launched to the market. By the end of June, total sales reached 14544 units. • On May 16, improved Dongfeng Peugeot 307 with brand new CMS technology was launched. • On April 28, Dongfeng Citroen C-Triomphe rolled off the production line and on May 28, the first batch were delivered to customers. Currently, purchase order has exceeded 20,000 units • Dongfeng Motor Co., Ltd • On April 20, new Teana equipped with Nissan’s new 2.0L engines was launched to the market and participates in the 2.0L PV sub-segment competition • Dongfeng Honda Automobile Co., Ltd • On April 22, newly launched Honda Civic simultaneously went on sale in 81 Dongfeng Honda dealer shops with positive market response. Market Share New models to be launched in 2H 2006 T21 Sylphy Civic New Peugeot 307 New Teana C-Triomphe Peugeot206 2004 2005 2006

7. 1 1 1 4. Production Capacity Expansion Projects Steadily Pushed Forward Continue to Push Forward Production Capacity Expansion Projects in a Timely Manner Push Forward PV Production Capacity Expansion Projects On March 26, Dongfeng Honda 120,000 units Capacity put into production. DPCA progressively push forwarded its 2nd phase capacity expansion project. As a result, by the end of June, an annual production capacity of 220,000 units was formed. On February 28, DFL’s PV engine production base completed construction and went into production. By June 30 2006,DFL has formed a total annual PV production capacity of 285,000 units. In 2006, the Group steadily pushed forward its capacity expansion projects, which laid a solid foundation for its future sustainable development

8. II. Financial Performance • Key Financial Data • Steady Revenue Growth • Continuous Growth of Gross Profit Margin • Robust Profit Growth • Turning Around of DPCA in 1H2006 • Continuous Improvement of Operation Efficiency • Further Reduction of Liability Level

9. 1. Key Financial Data

10. 2. Steady Revenue Growth Sales Revenue Composition of Revenue RMB million 9.9% Rapid sales growth as well as a steady pricing policy guaranteed a continuous and steady growth of the Group’s sales revenue

11. 3. Continuous Growth of Gross Profit PV Gross Profit Margin DFG’s Overall Gross Profit and Gross Profit Margin RMB million CV Gross Profit Margin Significant growth of the Group’s PV gross profit and gross profit margin guarantees the steady increase of the Group’s gross profit margin

12. 4.Robust Profit Growth DFG’s Total Net Profit Sales Growth 000’ units RMB Million Fast growth of PV sales volume and steady pricing policy guaranteed a continuously steady growth of the Group’s sales revenue

13. 5. Successful Turning Around of DPCA in 1H 2006 Strong Growth of Sales Volume Net Profit • Constant increase of localization rate and cost reduction through technology advancement • Cost reduction through centralized procurement • Cost reduction through improvement of management Unit RMB Million 38% Reduce Cost and Improve Efficiency Robust sales and constant cost reduction and improvement of efficiency contribute to DPCA’s successful turning around

14. 6.Continuous Improvement of Operational Efficiency Net Profit Margin Return on Equity Improvement of operation efficiency led to steady growth of the Group’s ROA and ROE

15. 7. Further Reduction of Liability Level Net Debt/ Capital Total Liabilities / Total Assets Significant drop of net debt makes the Group’s capital structure more flexible and healthier

16. III. Future Prospect • Prospect of PRC Auto Industry in 2H 2006 • Outlook of DFG

17. 1. Prospect of PRC Auto Industry in 2H 2006 According to CAAM，the sales growth of China’s automobile industry will remain a growth level of 13% in 2006 Passenger Vehicles: Driven by the rapid growth of demand, the estimated sales growth of PV in 2006 is approximately 17%, but sales in the 2H may be weaker than 1H. 000’ units 13% Commercial Vehicles: CV growth rate in 2H2006 is expected to match that in 1H, which is around 7%. Source: Forcast of China Association of Automobile Manufactures (CAAM)

18. 2. Outlook of DFG Sales Planning Specific Measures 000 ’units • Passenger Vehicles： • In the 2H, the Group will launch Dongfeng Nissan Sylphy, Geniss and Dongfeng Citroen T21 • Further improve localization rate and reduce cost through advancement of technology, management and central procurement, so as to improve competitive edge of our products in the market. • Commercial Vehicles： • Strengthen marketing of newly launched products • Safeguard competitiveness of old products • Promote export and expand overseas market share

19. ` Thanks!