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

Global Chinese Financial ForumGlobal Chinese Financial Forum

SHANGHAI CONFERENCE 2007SHANGHAI CONFERENCE 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.

Overview: Production Overview: Production

Leading manufacturer of Commercial Vehicle Air Leading manufacturer of Commercial Vehicle Air Brake Valves in ChinaBrake Valves in China

– Based in Wenzhou City, Zhejiang Province Based in Wenzhou City, Zhejiang Province

• the “Hub of auto parts” in China– The largest manufacturing base for air brake valves in China The largest manufacturing base for air brake valves in China – 40 categories of air brake valves in over 800 specifications40 categories of air brake valves in over 800 specifications

– ISO/TS16949 Quality Management System, OHSAS18001 System, and ISO/TS16949 Quality Management System, OHSAS18001 System, and ISO14001 Environmental Management SystemISO14001 Environmental Management System

Overview: Sales and MarketingOverview: Sales and Marketing

Leading Distributor of Commercial Air Brake Valve in China

– 39 domestic OEM customers, including all major truck makers 39 domestic OEM customers, including all major truck makers in Chinain China

– 28 distributors and over 800 sub-distributors, covering 7 28 distributors and over 800 sub-distributors, covering 7 regions nationwideregions nationwide

– Distributing products to 72 foreign countries or regions Distributing products to 72 foreign countries or regions internationallyinternationally

– Gaining the first international OEM customer, TATA motor in Gaining the first international OEM customer, TATA motor in IndiaIndia

Overview: From OTCBB to NASDAQ GMOverview: From OTCBB to NASDAQ GM

Reverse Merger

– In May 2004, Enchanted Village, Inc. acquired Fairford who owned 90% of the air brake valve business of Ruili Group

– Shares of Preferred Stock were converted into common stock

– In July 2004, Enchanted changed the name to SORL

NASDAQ Capital Market

– In April 2006, transferred from OTCBB to NASDAQ Capital Market

NASDAQ Global Market

– November 2006, upgraded to NASDAQ Global Market

– Secondary Public Offering with proceeds of $36 million USD

Significant Domestic MarketSignificant Domestic Market

• ’06 sales commercial vehicle increase: – commercial vehicle 15.2%commercial vehicle 15.2%– truck 16.2%truck 16.2%– heavy truck 34.3%heavy truck 34.3%

• less sensitive prices: CV vs. PV

• 50% price advantage: Domestic Brands over Imported Brands

• 90% of market share was taken by Local brands

• Long-term Development: Highway Expansion, Construction of 2 & 3 tier Cities, Big Logistics

• Substantial export market growth for trucks made in China

Significant Domestic MarketSignificant Domestic Market

Heavy truck consist of heavy-duty truck, chassis for heavy truck and trailer

• 12.2% CAGR of commercial vehicle during 2001-2006

• 16.8% CAGR of truck during 2001-2006

• 14.1% CAGR of heavy truck during 2001-2006

Significant Domestic MarketSignificant Domestic Market

For the five months ended May 31, 2007

– The Chinese commercial vehicle sector experienced a solid 24% growth

– The unit output of heavy trucks posted a robust 62% growth

– SORL grew overall sales by 31.6% and the sales to OEM increased by nearly 68%, in comparison with the same period of 2006

SORL: 2007 Q1 Revenue and Profit GrowthSORL: 2007 Q1 Revenue and Profit Growth

YOY Sales Growth: increased 25.7% to 24.4M

OEM $8.9M :: :: AftermarketAftermarket $7.1M :: $7.1M :: Export Export $8.4M

YOY Profit Growth: increased 31% to 2.1M

• 37% CAGR of sales during 2003-2006

• 86% CAGR of net income during 2003-2006

1.2

4.85.0

33.1

46.8

64.2

SORL: from 2003 to 2006SORL: from 2003 to 2006

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

2003 2004 2005

RevenueRevenue ($millions)($millions)

2003 2004 2005

84.9

2006 2006

7.7

Key Strengths of SORLKey Strengths of SORL

Success factors to win in the intensified competitionSuccess factors to win in the intensified 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

New Export OpportunitiesNew Export Opportunities

New Office: In early 2007, SORL opened its

forth oversea office in Pune, India with 4 sales representatives and 2 engineers

New Contracts: In 2006, accepted by TATA

Motors to supply to TATA’s commercial vehicles and aftermarket replacement division

On March 12th, 2007, SORL entered into a new sales agreement with TATA Motors

Capacity GrowthCapacity Growth

Reorganized production lines from traditional straight-line layout to U-shape track, enabling it to quickly adjust its production plan, and shortening the logistic distance among diverse procedures

Up to May, 2007, installed 10 additional die casting machines, added 47 computerized numerical control machines to 198 machines previously in use, purchased 4 new tooling machines for clutch servo and streamlined the production facility to increase the total capacity by nearly 25%.

Booked More equipments which were expected to be available in succession

Growth StrategyGrowth Strategy

M&A Project Pipeline:– Step 1: acquisition of international distribution network, repair factories,

and assembling facility

– Step 2: domestic acquisition for product-line extension

– Step 3: seeking strategic alliance opportunities

Organic Growth– Establishment of new sales centers in countries with auto industry

– Further expand production facilities to meet additional demand

– Cost Control:

• reduce material and energy consumption

• strict waste measurement

– Maintenance of high standard quality control

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

Richard CaiRichard Cai

Senior Manager, Capital Market

Phone: +86 (577) 6581 7720

Fax: +86 (577) 6581 7733

Email: richardcai@sorl.com.cn

Web: www.sorl.cn