SORL Auto Parts, Inc.NASDAQ: SORLSORL Auto Parts, Inc.NASDAQ: SORL

Investor PresentationInvestor Presentation

Roth Capital OC conference Roth Capital OC conference

Feb 2007Feb 2007

Safe Harbor StatementSafe Harbor Statement

This presentation contains "forward-looking statements" within the meaning of

the “safe-harbor” provisions of the Private Securities Litigation Reform Act of

1995. Such statements involve known and unknown risks, uncertainties and

other factors that could cause the actual results of the Company to differ

materially from the results expressed or implied by such statements, including

changes from anticipated levels of sales, future national or regional economic

and competitive conditions, changes in relationships with customers, access

to capital, difficulties in developing and marketing new products, marketing

existing products, customer acceptance of existing and new products, and

other factors. Accordingly, although the Company believes that the

expectations reflected in such forward-looking statements are reasonable,

there can be no assurance that such expectations will prove to be correct.

The Company has no obligation to update the forward-looking information

contained in this presentation.

Corporate ProfileCorporate Profile

Leading manufacturer of commercial vehicle air brake valves in Leading manufacturer of commercial vehicle air brake valves in ChinaChina

• Spin-off from Ruili Group which was established in 1987

• Revenue: $47M in ‘04; $64M in ‘05; $79M LTM ending Sept ‘06. Strong export: $12M in ‘04, $23M in ’05, $31M LTM in Sept ‘06

• Based in Wenzhou City, Zhejiang Province – the “Hub of auto parts” in China

• 1295 employees

ProductionProduction

• 15 Production lines in 270,000 square feet of production space

• State-of-the-art testing facilities

• Advanced equipment from US, Korea and Taiwan

• ISO/TS16949 Quality Management System, OHSAS18001 System, and ISO14001 Environmental Management System

Major ProductsMajor Products

Clutch ServosClutch Servos

Parking BrakeParking BrakeValvesValves

Foot Brake Foot Brake ValvesValves

• 40 categories of air brake valves in 800 specifications mainly for heavy vehicles

• All products export-ready and global systems certified

• Aggressive focus on new product R&D in cooperation with leading automotive engineering institutes

• State-of-the-art testing and production facilities with advanced equipment from US, Korea and Taiwan

Research & DevelopmentResearch & Development

Four-circuitFour-circuitProtection ValvesProtection Valves

Spring BrakeSpring BrakeChambers Chambers Air DryersAir Dryers

• 4 patents, 8 pending patent applications, other proprietary technologies

• 44 technical staff, including 32 engineers or senior engineers

• Partnerships with leading automotive engineering institutes:– Beijing Jiaotong University– Tsinghua University E-Tech Technology Co., Ltd – Zhejiang University– Huazhong University of Science and Technology

Balanced Revenue SourcesBalanced Revenue Sources

2005 Rev OEM $21M :: Aftermarket Replacement $20M :: Export $23M

Replacement32%

Export36%

OEM32%

Asia42%

Australia3%

Americas25%

Africa15%Europe

15%

2005 Export Revenues Breakdown2005 Export Revenues Breakdown

Local OEMs dominate the market with 90% share• Chinese made heavy duty trucks are more durable and less expensive

comparing with imported trucks• Imports have a poor after market and low maintenance and repair skill at

local garages

Strong relationships with all of the largest manufacturers in China• OEM – currently has 39 customers in China• Aftermarket – large, national, well-established distribution network• International / Exports – growing quickly with Tata, India’s largest

automobile company ($5.5 billion in revenue), as a leading customer in India

Strategic Long Term RelationshipsStrategic Long Term Relationships

Customers: OEMCustomers: OEM

SORL is the leading supplier to the dominant truck SORL is the leading supplier to the dominant truck manufacturers in China manufacturers in China

Auto Makers FAW Qingdao

FAW Jiefang Changchun

Dongfeng Motors

Liuzhou Special Auto

China Nat’l Heavy Duty Truck Group

Heavy Duty Trucks Output (unit)

55,970 71,797 14,000 45,000

Market Share in China 23.7% 30% 5.9% 19%

% Valves Supplied by SORL

40% 22% 18% 50% 5%

FAW Qingdao and FAW Jiefang Changchun are the only two heavy truck makers within FAW family

Two largest customers, FAW and Dongfeng, accounted for 54% of the Chinese total heavy duty truck sales in 2005

Customers: OEMCustomers: OEM

SORL’s customers continue to dominate SORL’s customers continue to dominate

Source: JD Power 2005 , UBS equity research, CAICA

Rank Group Heavy truck

1 DaimlerChrysler 244

2 Volvo Group 170

3 Paccar 125

4 IVECO Group 76

5 Dongfeng Motor 68

6 Navistar 62

7 FAW Group 56

8 MAN Group 54

9 Scania 53

10 Tata Group 50

TOP 10 heavy truck maker (‘000 units) Big 5 takes 84% China Market

Customers: AftermarketCustomers: Aftermarket

• $12.2mm in revenue in ’04 to $20.2mm in ’05

• 26% of revenue in 2004 to 32% of revenue in 2005

• 27 authorized distributors and over 800 sub-distributors

Customers: AftermarketCustomers: Aftermarket

Success factors to win in the intensified Success factors to win in the intensified aftermarket competitionaftermarket competition

Established Nationwide

Sales Network

Close Relationship with Big OEM Manufacturers

Performance-Cost

Competitiveness

Warranty and

ReliabilityTimely

Delivery

Efficient Customer Services

Other Small Manufacturers No No Low Low Poor Poor

SORL Auto Parts Yes Yes High High Good Good

Customers: InternationalCustomers: International

• $12.6M in revenue in ’04 to $23.4M in ’05

• 27% of revenue in 2004 to 36% of revenue in 2005

• Mostly replacement but beginning to explore OEM opportunities (TATA Motors)

• 3 authorized sales centers (Australia, UAE, and USA)

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

Country: UAE South Africa Canada Taiwan South Africa Spain USA

YoY Increase:

92% 77% 93% 385% 140% 165% 10%

Customers: InternationalCustomers: International

Top 7 export customers continue to show Top 7 export customers continue to show confidence in SORL product qualityconfidence in SORL product quality

GD Auto MICO FP MITA POLMO Air-Fren KTC

2004

2005

Significant Growth OpportunitySignificant Growth Opportunity

Chinese Auto Parts Export• China’s worldwide auto parts sales totaled $55 billion in 2004 and are

expected to reach $187.5 billion by 2010, with exports from China expected to grow at an annual growth rate of 50%

Truck market: Infrastructure and regulation in favor of continuous growth• Truck prices are less sensitive than passenger vehicles and hence depend

more on macroeconomic changes such as environmental and public policy• Domestic brands have over 50% price advantage over imported heavy trucks

• Highway expansion increased by 38% during 2006-2010 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 in China

• Jan-Oct 06, China exported 128,000 trucks, $788M, 50% YoY rev growth; China exported 21,800 buses, $427M, 150% YoY rev growth

Source: Citigroup Equity Research, CAAM, Frost & Sullivan Research - Sept 05, Feb, 06, Credit Suisse Research, Jan 06, mgmt estimate

‘05 Export Markets by Revenue

1. Syria2. Algeria3. Belgium4. Iran5. Sudan6. Russia7. Vietnam8. Kazakhstan9. Ukraine10. Saudi Arabia11. Cuba

Attractive Export OpportunityAttractive Export Opportunity

• The current global market for commercial vehicle air brake valves is over $5 billion• Growth of aftermarket air brake valves market is approximately 15%• Global purchasing trend is moving to China• SORL’s exports in 2006 were 40% of total revenue (as of September 30), 36% in 2005,

27% in 2004, and 18% in 2003

Source: China Automotive Industry Information Network, Asimco Technologies, CAAM, Wall Street Journal August 2006

$0.0

$5.0

$10.0

$15.0

2000 2001 2002 2003 2004 2005

ImportsExports

China Auto Parts Annual Exports & Imports China Auto Parts Annual Exports & Imports China commercial vehicle Annual ExportsChina commercial vehicle Annual Exports

USD BillionUSD Billion

Growth StrategyGrowth Strategy

OEM:

• Enhance brand recognition and develop relationships with other truck manufacturers

Export:

• Strengthen presence overseas by establishing relationships with additional authorized distributors

• Penetrate the aftermarket segment to gain name and quality recognition and then enter the International OEM market

M&A and JV:

• Over 1,400 auto parts companies located in the Wenzhou area can become potential M&A targets or JV partners

R&D:

• Invest in next generation valve technology

• Continue partnerships with leading automotive engineering institutes

Cost Control:

• Reduce material and energy consumption; strict waste measurement

• Maintain high standard quality control

• 39% CAGR of sales during 2003-2005

• 107% CAGR of net income during 2003-2005

1.2

4.85.0

33.1

46.8

64.2

Significant Revenue and Profit GrowthSignificant Revenue and Profit Growth

Net Income Net Income ($millions)($millions)

2003 2004 2005

RevenueRevenue ($millions)($millions)

2003 2004 2005

45.8

60.8

79.2

Significant Revenue and Profit GrowthSignificant Revenue and Profit Growth

RevenueRevenue ($millions)($millions)

9 month ‘05 9 month ‘06 LTM*

* Ended September 30, 2006.

4.4

5.76.4

Net Income / EPSNet Income / EPS($millions and dollar)($millions and dollar)

9 month ‘05 9 month ‘06 LTM*

0.33 0.430.47

Strong Balance SheetStrong Balance Sheet

(US$, in thousands) Sept 30, 2006 Dec 31, 2005

Cash $ 1,191 $ 961

Receivables $31,741 $26,828

Inventories $ 2,298 $ 2,513

Total Assets $46,702 $39,301

Total Debt $10,874 $16,027

Total Current Liabilities $21,688 $21,580

Minority Interest $ 2,419 $ 1,736

Stockholders’ Equity $22,614 $15,984

• December 1st 2006, SORL completed a follow-on public offering and raised $32.7M.

Management TeamManagement Team

Xiaoping Zhang, Chairman and CEOXiaoping Zhang, Chairman and CEO

• Co-founder of Ruili Group

• President of the Ruian Auto Parts Association in Wenzhou, Zhejiang Province

• Vice President of China Federation of Industry and Commerce Auto & Motorbike Parts Chamber of Commerce

Xiaofeng Zhang, COOXiaofeng Zhang, COO

• Co-founder of Ruili Group – General Manager

• Spearheads SORL’s sales and marketing effort

Zongyun Zhou, CFOZongyun Zhou, CFO

• Certified Public Accountant in China

• Chief Financial Officer of Shanghai Huhao Auto Parts Manufacturing Company Limited, a joint venture between the Ruili Group and Shanghai Auto Group, 2002 - 2004

David He, Senior Manager of David He, Senior Manager of Investor RelationsInvestor Relations

• Illinois CPA and awarded CFA designation

• MBA in Finance and MS in Accountancy from the University of Illinois at Urbana-Champaign

• Senior Relationship Manager in corporate banking with Credit Agricole Indosuez in Shanghai

Market Potential

• China is the world’s 2nd largest auto market and 3rd largest in auto production

• Export potential: Current global market for commercial vehicle air brake valves is over $5bn

• Opportunities for product line expansion and complementary acquisitions

Industry Leadership

• SORL holds a leading market position in the following products segments in China

– OEM air brake valve segment

– Replacement air brake segment

Solid Operating History

• Strong financials: 37% overall revenue increase year over year

• Successful expansion of export sales by 83% from 2004 to 2005 ($12.6mm to $23.4mm) with high-quality products that meet global ISO certifications

• Sales to top seven international customers grew an average of 92% in 2005

• Strong brand equity – SORL is one of the top 10 most recognized brand names in the automotive parts industry in China

Investment HighlightsInvestment Highlights

Source: CAAM, Management estimate

SORL Auto Parts, Inc.NASDAQ: SORLSORL Auto Parts, Inc.NASDAQ: SORL

David Ming HeDavid Ming He

Senior Manager, Capital Market

Phone: +86 (577) 6581 7720

Fax: +86 (577) 6581 7733

Email: davidhe@sorl.com.cn

Web: www.sorl.cn