<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                   FORM 10-QSB

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

     FOR THE FISCAL QUARTER ENDED: MARCH 31, 2008

                                       OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

                       COMMISSION FILE NUMBER: 333-127755

                     ASIA AUTOMOTIVE ACQUISITION CORPORATION

<TABLE>
<S>                                         <C>
             DELAWARE                                    20-3022522
 (State or other jurisdiction of            (I.R.S. Employer Identification No.)
  incorporation or organization)
</TABLE>

<TABLE>
<S>                                                      <C>
401 SOUTH OLD WOODWARD, SUITE 450
       BIRMINGHAM, MICHIGAN
 (Address of principal executive                            48009
            offices)                                     (Zip Code)
</TABLE>

                                 (248) 593-8330
               Registrant's telephone number, including area code

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer. See definition of "accelerated
filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check
one):

Large accelerated filer [ ]   Accelerated filer [ ]   Non-accelerated filer [X]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [X] No [ ]

Indicate the number of shares of each of the issuer's classes of common stock as
of the latest practicable date.

The number of shares outstanding of the registrant's common stock as of May 1,
2008 was 6,386,250.

<PAGE>

                     ASIA AUTOMOTIVE ACQUSITION CORPORATION
                                Table of Contents

<TABLE>
<S>     <C>
                     PART I - FINANCIAL INFORMATION

Item 1. Condensed Financial Statements
        Condensed Balance Sheet
        Condensed Statements of Operations
        Condensed Statements of Cash Flows
        Notes to Condensed Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and
           Results of Operations
Item 3. Controls and Procedures

                       PART II - OTHER INFORMATION

Item 1. Legal Proceedings
Item 2. Exhibits

SIGNATURES

CERTIFICATIONS
</TABLE>

<PAGE>

PART 1. FINANCIAL INFORMATION

ITEM 1. CONDENSED FINANCIAL STATEMENTS

                     ASIA AUTOMOTIVE ACQUISITION CORPORATION
                    (a corporation in the development stage)
                            CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>
                                             MARCH 31, 2008   DECEMBER 31, 2007
                                             --------------   -----------------
                                               (UNAUDITED)
<S>                                          <C>              <C>
                  ASSETS
Current assets
   Cash and cash equivalents                  $     7,338        $    35,611
Other assets
   Deferred income taxes                          687,466            442,659
   Investments in the Trust Account            39,860,860         39,507,229
                                              -----------        -----------
Total assets                                  $40,555,664        $39,985,499
                                              ===========        ===========
     LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
   Accrued expenses                           $ 1,292,562        $   595,500
   Accrued taxes payable                          120,000
   Warrant liability                            9,515,100         14,562,188
   Deferred underwriter's fee, net of
      $241,379 in common stock, subject
      to conversion                               966,121            966,121
                                              -----------        -----------
Total current liabilities                      11,893,783         16,123,809
                                              -----------        -----------
Common stock, subject to possible
   conversion, 1,005,746 shares at
   conversion value plus interest income
   of $454,382 and $408,433,
   approximately $7.89 per share and
   $7.88 per share, respectively                7,934,240          7,888,291

          STOCKHOLDERS' EQUITY

Preferred stock, $.001 par value,
   authorized 1,000,000 shares; none
   issued                                              --                 --
Common stock, $.001 par value, authorized
   39,000,000 shares; issued and
   outstanding 6,380,250 shares
   (of which 1,005,746 shares subject to
   possible redemption)                             6,380              6,380
Additional paid-in capital                     22,327,433         22,327,433
Deficit accumulated during the
   development stage                           (1,606,172)        (6,360,414)
                                              -----------        -----------
Total stockholders' equity                     20,727,641         15,973,399
                                              -----------        -----------
Total liabilities and stockholders' equity    $40,555,664        $39,985,499
                                              ===========        ===========
</TABLE>

See accompanying notes to condensed financial statements.


                                        1

<PAGE>

                     ASIA AUTOMOTIVE ACQUISITION CORPORATION
                    (a corporation in the development stage)
                       CONDENSED STATEMENTS OF OPERATIONS
                                   (unaudited)

<TABLE>
<CAPTION>
                                               THREE MONTHS     THREE MONTHS     JUNE 20, 2005
                                                  ENDED             ENDED       (INCEPTION) TO
                                              MARCH 31, 2008   MARCH 31, 2007   MARCH 31, 2008
                                              --------------   --------------   --------------
<S>                                           <C>              <C>              <C>
Other income (expense), net                     $  353,631      $  470,559       $ 3,496,998
Unrealized gain (loss) on warrant liability      5,047,088         690,078        (2,132,287)
Formation and operating costs                     (725,335)       (359,527)       (2,036,877)
                                                ----------      ----------       -----------
Other income (loss) before taxes                 4,675,384         801,110          (672,166)
Income tax benefit (expense)                       124,807         113,904          (479,624)
                                                ----------      ----------       -----------
Net income (loss)                               $4,800,191      $  915,014       $(1,151,790)
                                                ----------      ----------       -----------
Income applicable to common stockholders
   subject to possible conversion               $   45,949          61,142       $   454,382
Income (loss) applicable to common
   stockholders not subject to possible
   conversion                                   $4,754,242         853,872       $(1,606,172)
Weighted average common shares outstanding:
Basic                                            6,380,250       6,380,250         4,883,267
Diluted                                          8,188,133       8,130,428         4,883,267
                                                ==========      ==========       ===========
Income (loss) per share, basic                  $      .75      $      .14       $      (.24)
Income (loss) per share, diluted                $      .59      $      .11       $      (.24)
</TABLE>

See accompanying notes to condensed financial statements.


                                        2
<PAGE>

                     ASIA AUTOMOTIVE ACQUISITION CORPORATION
                    (a corporation in the development stage)

                       CONDENSED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                   JUNE 20, 2005
                                                 THREE MONTHS     THREE MONTHS       (DATE OF
                                                     ENDED            ENDED        INCEPTION) TO
                                                MARCH 31, 2008   MARCH 31, 2007   MARCH 31, 2008
                                                --------------   --------------   --------------
                                                  (UNAUDITED)      (UNAUDITED)      (UNAUDITED)
<S>                                             <C>              <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income (loss)                              $ 4,800,191       $ 915,014      $ (1,151,790)
   Adjustments to reconcile net income (loss)
   to net cash provided by operations:
      Deferred income tax benefit                    (244,807)       (282,785)         (687,466)
Changes in operating liabilities:
      Warrant liability                            (5,047,088)       (690,078)        2,132,287
      Accrued taxes payable                           120,000         168,881           120,000
      Accrued expenses                                697,062         253,712         1,292,562
                                                  -----------       ---------      ------------
Net cash provided by operating activities             325,358         364,744         1,705,593
                                                  -----------       ---------      ------------
NET CASH PROVIDED BY (USED IN)  INVESTING
ACTIVITIES:
      Investment in the Trust Account                (353,631)         57,942       (39,860,860)
                                                  -----------       ---------      ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from note payable                                                            45,250
   Proceeds from issuance of common stock
   to existing stockholders'                                                             25,000
   Proceeds from sale of options to the
   underwriter                                                                              100
   Proceeds from the issuance of common
   stock in the public offering                                                      40,250,000
   Repayment of notes payable to stockholders                                           (45,250)
   Payments of offering costs                                                        (2,112,495)
                                                  -----------       ---------      ------------
Net cash provided by financing activities                  --              --        38,162,605
                                                  -----------       ---------      ------------
Net increase (decrease) in cash and cash
   equivalents                                        (28,273)        422,686             7,338
Cash and cash equivalents, beginning of
period                                                 35,611         384,162                --
Cash and cash equivalents, end of period          $     7,338       $ 806,848      $      7,338
                                                  -----------       ---------      ------------
</TABLE>

See accompanying notes to condensed financial statements.


                                        3

<PAGE>

                     ASIA AUTOMOTIVE ACQUISITION CORPORATION
                    (a corporation in the development stage)

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1. BASIS OF PRESENTATION, ORGANIZATION AND NATURE OF BUSINESS OPERATIONS

     The accompanying condensed financial statements as of March 31, 2008 and
for the three months ended March 31, 2008 and for the period June 20, 2005
(inception) to March 31, 2008, have been prepared in accordance with accounting
principles generally accepted in the United States of America ("U.S. GAAP") for
interim financial statements and pursuant to the instructions on the Form 10-Q
and Article 10 of Regulation S-X of the Securities and Exchange Commission
("SEC"). Certain financial information and footnote disclosures normally
included in the financial statements prepared in accordance U.S. GAAP have been
condensed or omitted pursuant to such rules and regulations. In the opinion of
management, all adjustments (consisting of normal recurring accruals) have been
made that are considered necessary for a fair presentation of the financial
position, results of operations, and cash flows of the Company for all periods
presented.

     The results of operations for the three months ended March 31, 2008 are not
necessarily indicative of the results of operations to be expected for a full
fiscal year. These condensed financial statements should be read in conjunction
with the audited financial statements for the year ended December 31, 2007 as
reported on the Company's Annual Report on Form 10-KSB filed with the SEC. The
condensed balance sheet as of December 31, 2007 was derived from the Company's
audited financial statements but does not include all disclosures required by
U.S. GAAP.

     Asia Automotive Acquisition Corporation (the "Company") was incorporated in
Delaware on June 20, 2005 as a blank check company formed to acquire, through
merger, capital stock exchange, asset acquisition or other similar business
combination, a business in the automotive supplier industry. The Company has
neither engaged in any operations nor generated revenues to date. The Company is
considered to be in the development stage as defined in Statement of Financial
Accounting Standards (SFAS) No. 7, "Accounting and Reporting By Developmental
State Enterprises" and is subject to the risks associated with activities of
development stage companies. The Company has elected December 31st as its fiscal
year end.

     The registration statement for the Company's initial public offering (the
"Public Offering") was declared effective on April 11, 2006. The Company
consummated the Public Offering on April 18, 2006 and received net proceeds of
approximately $ 37,171,000. The Company's management has broad discretion with
respect to the specific application of the net proceeds of the Public Offering
(the "Offering") (as described in Note 4), although substantially all of the net
proceeds of the Offering are intended to be generally applied toward
consummating a business combination with a target company. As used herein, a
"target business" shall include an operating business in the security industry
and a "business combination" shall mean the acquisition by the Company of a
target business.

     Of the proceeds of the Offering, $37,418,000 (plus interest income) is
being held in a trust account ("Trust Account") and invested until the earlier
of (i) the consummation of the first business combination or (ii) the
distribution of the Trust Account as described below. The amount in the Trust
Account include $ 1,207,500 of contingent underwriting compensation, which will
be paid to the underwriters if a business combination is consummated, but which
will be forfeited in part if public stockholders elect to have their shares
redeemed for cash if a business combination is not consummated. Deferred
underwriter's fee is reflected on the balance sheet at $966,121, an additional
$241,379 is included in common stock, subject to possible conversion, for a
total of $1,207,500. The remaining proceeds may be used to pay for business,
legal and accounting due diligence on prospective acquisitions and continuing
general and administrative expenses.

<PAGE>

1.   BASIS OF PRESENTATION, ORGANIZATION AND NATURE OF BUSINESS OPERATIONS
     (CONTINUED)

     The Company, after signing a definitive agreement for the acquisition of a
target business, will submit such transaction for stockholder approval. In the
event that public stockholders owning a majority of the outstanding stock sold
in the Offerings vote against the business combination and elect to have the
Company redeem their shares for cash, including all of the officers and
directors of the Company ("Initial Stockholders"), have agreed to vote their
1,349,000 founding shares of common stock in accordance with the vote of the
majority in interest of all other stockholders of the Company with respect to
any business combination and to vote any shares they acquire in the aftermarket
in favor of the business combination. After consummation of the Company's first
business combination, all of these voting safeguards will no longer be
applicable.

     With respect to the first business combination which is approved and
consummated, any holder of shares sold in the Public Offering, other than the
Initial Stockholders and their nominees (the "Public Stockholders") who voted
against the business combination may demand that the Company redeem his or her
shares. The per share redemption price will equal $ 7.44 per share plus interest
earned thereon in the Trust Account. Accordingly, Public Stockholders holding
19.99% of the aggregate number of shares sold in this offering and the private
placement may seek redemption of their shares in the event of a business
combination.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Development Stage Company:

The Company complies with the reporting requirements of SFAS No. 7 "Accounting
and Reporting by Development Stage Enterprises."

Basis of presentation

          The accompanying financial statements are presented in U.S. dollars in
conformity with accounting principles generally accepted in the United States of
America, and pursuant to the accounting and disclosure rules and regulations of
the Securities and Exchange Commission (the "SEC").

Common stock:

          On January 23, 2006, the Company effected a stock split in the form of
a dividend of .233 shares of common stock for each outstanding share of common
stock. All references in the accompanying financial statements to the number of
shares of common stock and loss per share have been retroactively restated to
reflect these transactions.

Warrant liability:

          The Company has outstanding warrants, which provides for the Company
to register the shares underlying the warrants and is silent as to the penalty
to be incurred in the absence of the Company's ability to deliver registered
shares to the warrant holders upon warrant exercise. Under EITF No. 00-19
"Accounting for Derivative Financial Instruments Indexed to, and Potentially
Settled in, a Company's Own Stock" ("EITF No. 00-19"), registration of the
common stock underlying the Company's warrants is not within the Company's
control. As a result, the company must assume that it could be required to
settle the warrants on a net-cash basis, thereby necessitating the treatment of
the potential settlement obligation as a liability. EITF No. 00-19 also requires
the Company to record the potential settlement liability at each reporting date
using the current estimated fair value of the warrants, with any changes being
recorded through the Company's statement of operations. The potential settlement
obligation related to the warrants will continue to be reported as a liability
until such time that the warrants are exercised, expire, or the Company is
otherwise able to modify the registration requirements in the warrant agreement
to remove the

<PAGE>

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

provisions which require this treatment. The fair value of the warrant liability
is determined using the trading value of the warrants.

Investments in the Trust Account:

          Cash held in the Trust Account is invested in U.S. Treasury
Securities. The Company recognizes cash held in the Trust Account as a
non-current asset in the accompanying balance sheet, and totaled $39,860,860 as
of March 31, 2007. The carrying value of cash equivalents approximates fair
value. Interest income is recorded on an accrual basis.

Income (loss) per common share:

          Income (loss) per common share is based on the weighted average number
of common shares outstanding. The Company complies with SFAS No. 128, "Earnings
Per Share." SFAS No. 128 requires dual presentation of basic and diluted income
(loss) per share for all periods presented. Basic loss per share excludes
dilution and is computed by dividing income available to common stockholders by
the weighted average number of common shares outstanding for the period. Diluted
loss per share reflects the potential dilution that could occur if securities or
other contracts to issue common stock were exercised or converted into common
stock or resulted in the issuance of common stock that then share in the income
of the Company.

          The Company's condensed statements of operations include a
presentation of income (loss) per share for common stock subject to possible
conversion in a manner similar to the two-class method of earnings per share in
accordance with Emerging Issue Task Force Abstracts, Topic No. D-98
"Classification and Measurement of Redeemable Securities". Basic and diluted net
income (loss) per share amounts for the number of common shares subject to
possible conversion are calculated by dividing the net interest income
applicable to common shares subject to conversion (approximately $46,000 and
$61,000 for the three months ended March 31, 2008 and 2007, respectively, and
$454,000 for the period June 20, 2005 (inception) to March 31, 2008) by the
weighted average number of shares subject to possible conversion.

Redeemable common stock:

          The Company accounts for redeemable common stock in accordance with
Emerging Issue Task Force ("EITF") D-98 "Classification and Measurement of
Redeemable Securities". Securities that are redeemable for cash or other assets
are classified outside of permanent equity if they are redeemable at the option
of the holder. The Company recognizes changes in the redemption value
immediately as they occur and adjusts the carrying value of the redeemable
common stock to equal its redemption value at the end of each reporting period.

Concentration of credit risk:

          Financial instruments that potentially subject the Company to
concentrations of credit risk consist of cash accounts in a financial
institution which, at times, may exceed the Federal depository insurance
coverage. The Company has not experienced losses on these accounts and
management believes the Company is not exposed to significant risks on such
accounts.

Cash and cash equivalents:

     The Company considers all highly liquid investments purchased with an
original maturity of three months or less to be cash equivalents.

<PAGE>

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Recently issued accounting standards:

     In September 2006, the Financial Accounting Standards Board ("FASB") issued
SFAS No. 157, "Fair Value Measurements" ("SFAS 157"). SFAS 157 defines fair
value, establishes a framework for measuring fair value and expands disclosures
about fair value measurements. SFAS 157 applies to other accounting
pronouncements where the FASB requires or permits fair value measurements but
does not require any new fair value measurements. In February 2008, FASB issued
FASB Staff Position No. 157-2, "Effective Date of FASB Statement No. 157" ("FSP
No. 157-2"), which delayed the effective date of SFAS 157 for certain
non-financial assets and non-financial liabilities to fiscal years beginning
after November 15, 2008, and interim periods within those fiscal years. The
Company adopted SFAS 157 for financial assets and liabilities on January 1,
2008. SFAS 157 did not have any impact on the Company's results of operations or
financial position. The disclosures required under SFAS 157 are set forth in
Note 5.

     In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for
Financial Assets and Financial Liabilities- Including an amendment of FASB
Statement No. 155" ("SFAS 159"). This statement permits entities to choose to
measure selected assets and liabilities at fair value. The Company adopted SFAS
159 on January 1, 2008 resulting in no impact to the Company's financial
condition, results of operations or cash flows.

     In December 2007, the FASB issued SFAS No. 141 (revised 2007), "Business
Combinations" ("SFAS 141(R)"). SFAS 141(R) establishes principles and
requirements for how the acquirer in a business combination recognizes and
measures in its financial statements the fair value of identifiable assets
acquired, the liabilities assumed and any non-controlling interest in the
acquiree at the acquisition date. SFAS 141(R) determines what information to
disclose to enable users of the financial statements to evaluate the nature and
financial effects of the business combination. SFAS No. 141(R) is effective for
fiscal years beginning after December 15, 2008.

     In December 2007, the FASB issued SFAS No. 160, "Noncontrolling Interests
in Consolidated Financial Statements - An Amendment of ARB No. 51" ("SFAS 160").
SFAS 160 requires reporting entities to present noncontrolling (minority)
interests as equity as opposed to as a liability or mezzanine equity and
provides guidance on the accounting for transactions between an entity and
noncontrolling interests. SFAS 160 is effective the first fiscal year beginning
after December 15, 2008, and interim periods within that fiscal year. SFAS 160
applies prospectively as of the beginning of the fiscal year SFAS 160 is
initially applied, except for the presentation and disclosure requirements which
are applied retrospectively for all periods presented subsequent to adoption.
The adoption of SFAS 160 will not have a material impact on the Company's
results of operations or financial position; however, it could impact future
transactions entered into by the Company.

     Management does not believe that any other recently issued, but not yet
effective, accounting pronouncements, if currently adopted, would have a
material effect on the Company's financial statements.

3. THE OFFERING

     On April 18, 2006, the Company sold 5,031,250 units (including the
underwriters full exercise of an over allotment option with respect to 656,250
units) to the public at a price of $8.00 per unit. Each unit consists of one
share of the Company's common stock, $0.001 par value, and one redeemable common
stock purchase warrant ("warrant"). Each warrant entitles the holder to purchase
from the Company one share of common stock at an exercise price of $5.00
commencing the later of the completion of a business combination with a target
business or April 10, 2007 and expiring April 11, 2012. The warrants are
redeemable at a price of $.01 per warrant upon 30 days notice after the warrants
become exercisable, only in the event that the last sale price of the common
stock is at least $10.00 per share for any 20 trading days within a 30 trading
day period ending three business days before we send the notice of redemption.

<PAGE>

4. INCOME TAXES

     Income tax benefit (expense) for the three months ended March 31, 2008 and
2007, and the period from June 20, 2005 (date of inception) to March 31, 2008
was approximately $125,000, $114,000, and ($480,000) respectively, which is net
of the expense for current federal income taxes and the deferred tax benefit
recorded for the three months ended March 31, 2008 and 2007, and the period from
June 20, 2005 (date of inception) to March 31, 2008.

     The Company has not begun its trade or business for U.S. tax purposes.
Accordingly, it could not yet recognize losses for start-up expenditures. As a
result a deferred tax asset of approximately $687,000 at March 31, 2008 was
established for these start-up expenditures.

     Effective January 1, 2007, the Company adopted the provisions of FASB
Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an
Interpretation of FASB Statement No. 109 ("FIN 48"). FIN 48 provides recognition
criteria and a related measurement model for tax positions taken by companies.
In accordance with FIN 48, a tax position is a position in a previously filed
tax return or a position expected to be taken in a future tax filing that is
reflected in measuring current or deferred income tax assets and liabilities.
Tax positions shall be recognized only when it is more likely than not
(likelihood of greater than 50%), based on technical merits, that the position
will be sustained upon examination.

     Tax positions that meet the more likely than not threshold should be
measured using a probability weighted approach as the largest amount of tax
benefit that is greater than 50% likely of being realized upon settlement. The
Company adopted FIN 48, which had no effect on the Company's financial
statements at this time given its limited operations and activities.

5. FAIR VALUE MEASUREMENTS

     Effective January 1, 2008, the Company adopted SFAS No. 157, Fair Value
Measurement , or SFAS 157, for its financial assets and liabilities that are
re-measured and reported at fair value at each reporting period, and
non-financial assets and liabilities that are re-measured and reported at fair
value at least annually. In accordance with the provisions of FSP no. FAS 157-2,
Effective Date of FASB Statement No. 157, the Company has elected to defer
implementation of SFAS 157 as it relates to its non-financial assets and
non-financial liabilities that are recognized and disclosed at fair value in the
financial statements on a nonrecurring basis until January 1, 2009. The Company
is evaluating the impact, if any, this standard will have on its non-financial
assets and liabilities.

     The adoption of SFAS 157 to the Company's financial assets and liabilities
did not have an impact on the Company's financial results.

     The following table presents information about the Company's cash
equivalents and cash held in trust that are measured at fair value on a
recurring basis as of March 31, 2008, and indicates the fair value hierarchy of
the valuation techniques the Company utilized to determine such fair value. In
general, fair values determined by Level 1 inputs utilize quoted prices
(unadjusted) in active markets for identical assets or liabilities. Fair values
determined by Level 2 inputs utilize data points that are observable such as
quoted prices, interest rates and yield curves. Fair values determined by Level
3 inputs are unobservable data points for the asset or liability, and includes
situations where there is little, if any, market activity for the asset or
liability:

<PAGE>

5. FAIR VALUE MEASUREMENTS (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                SIGNIFICANT
                                                        QUOTED PRICES IN   SIGNIFICANT OTHER   UNOBSERVABLE
                                           MARCH 31,     ACTIVE MARKETS    OBSERVABLE INPUTS      INPUTS
DESCRIPTION                                   2008          (LEVEL 1)          (LEVEL 2)         (LEVEL 3)
-----------                               -----------   ----------------   -----------------   -------------
<S>                                       <C>           <C>                <C>                 <C>
Assets:
Cash equivalents                          $     7,388   $     7,388               $--               $--
Cash and cash equivalents held in trust    39,860,860    39,860,860                --                --
                                          -----------   -----------               ---               ---
Total                                     $39,868,248   $39,868,248               $--               $--
</TABLE>

     The fair values of the Company's cash equivalents and cash and cash
equivalents held in Trust Account are determined through market, observable and
corroborated sources. The carrying amounts reflected in the condensed balance
sheets for other current assets and accrued expenses approximate fair value due
to their short-term maturies.

     As disclosed in Note 2 "Warrant liability," the Company's issuance of
warrants include provisions which require it to account for the conversion
feature. Such financial instruments are recorded at fair value when issued and
adjusted to fair value at each reporting date or when extinguished, converted or
exercised, with the change in fair value reported in the statements of
operations. As a result these changes in fair value, we have recorded a gain for
the three months ended March 31, 2008 of approximately $5,047,000.

     The derivative liabilities are valued using the Black-Scholes pricing model
using inputs applicable to each issuance. Such valuation falls under Level 3 of
the fair value hierarchy under FAS 157. The following table represents the
reconciliation required for Level 3 inputs and the valuation inputs to the
Black-Scholes pricing model.

<TABLE>
<S>                           <C>
Balance - December 31, 2007   $14,562,188
Changes in fair value          (5,047,088)
                              -----------
Ending - March 31, 2008       $ 9,515,100
                              ===========
</TABLE>

<TABLE>
<S>                           <C>
Unrealized gains (losses)
   included in earnings for
   the three months ended
   March 31, 2008
   attributable to
   derivative liabilities
   still held at March 31,
   2008                       $ 5,047,088
                              ===========
   - Cumulative               $(2,132,287)
                              ===========
</TABLE>

6. COMMITMENTS AND RELATED PARTY TRANSACTIONS

     The Company presently occupies office space provided by Asia Development
Capital LLC ("ADC"), an affiliate of the Company. ADC has agreed that, until the
Company consummates a business combination, it will make such office space, as
well as certain office and secretarial services, available to the Company, as
may be required by the Company from time to time. The Company has agreed to pay
such affiliate $7,500 per month for such services commencing on the effective
date of the Offering, April 18, 2006.

     The Company has engaged Rodman & Renshaw, the representative of the
underwriters, on a non-exclusive basis, as the Company's agent for the
solicitation of the exercise of the warrants. To the extent not inconsistent
with the guidelines of the NASD and the rules and regulations of the SEC, the
Company has agreed to pay the representative for bona fide services rendered a
commission equal to 2.5% of the exercise price for each warrant exercised more
than one year after the date of the prospectus if the exercise was solicited by
the underwriters. In addition to soliciting, either orally or in writing, the
<PAGE>

6. COMMITMENTS AND RELATED PARTY TRANSACTIONS (CONTINUED)

exercise of the warrants, the representative's services may also include
disseminating information, either orally or in writing, to warrant holders about
the Company or the market for our securities, and assisting in the processing of
the exercise of the warrants. No compensation will be paid to the representative
upon the exercise of the warrants if:

-    the market price of the underlying shares of common stock is lower than the
     exercise price;

-    the holder of the warrants has not confirmed in writing that the
     underwriters solicited the exercise;

-    the warrants are held in a discretionary account;

-    the warrants are exercised in an unsolicited transaction; or

-    the arrangement to pay the commission is not disclosed in the prospectus
     provided to warrant holders at the time of exercise.

     The Company has sold to Rodman & Renshaw, LLC (the "Representative" of the
underwriters), for $100, as additional compensation, an option to purchase up to
a total of 350,000 units at a per-unit price of $10.00. The units issuable upon
exercise of this option are also identical to those offered by the Offering
except that the warrants included in the option have an exercise price of $6.65
(133% of the exercise price of the warrants included in the units sold in the
offering.) The Company will pay the underwriters in the Offering an underwriting
discount of 7% of the gross proceeds of this Offering (of which 3% is deferred
until the consummation of a business combination).

     The sale of the option will be accounted for as an equity transaction.
Accordingly, there will be no net impact on the Company's financial position or
results of operations, except for the recording of the $100 proceeds from the
sale. The Company has determined, based upon a Black-Scholes model, that the
fair value of the option on the date of sale would be approximately $2.98 per
unit, or approximately $1,043,000 total, using an expected life of five years,
volatility of 45.47% and a risk-free interest rate of 3.38%.

     The volatility calculation of 45.47% is based on the 365-day average
volatility of a representative sample of ten (10) companies with market
capitalizations under $500 million that management believes to be engaged in the
business of auto component parts (the "Sample Companies"). Because the Company
does not have a trading history, the Company needed to estimate the potential
volatility of its common stock price, which will depend on a number of factors
which cannot be ascertained at this time. The Company referred to the 365-day
average volatility of the Sample Companies because management believes that the
average volatility of such companies is a reasonable benchmark to use in
estimating the expected volatility of the Company's common stock post-business
combination. Although an expected life of five years was taken into account for
purposes of assigning a fair value to the option, if the Company does not
consummate a business combination within the prescribed time period and
liquidates, the option would become worthless.

     Pursuant to letter agreements with the Company and the Representative, the
Initial Stockholders have waived their right to receive distributions with
respect to their founding shares upon the Company's liquidation.

     Certain of the Company's officers, directors, or their designees have
agreed with the Representative that upon consummation of the Offering and during
the 45 trading day period commencing on the later of the date that the
securities comprising the units begin separate trading or 60 days following the
consummation of the Offering, that they will purchase up to 320,000 warrants in
the public marketplace at prices not to exceed $1.40 per Warrant. As of March
31, 2008, William R Herren, Mr. Rudy Wilson, Chun Hao and Asia Development
Capital held 290,000 warrants to purchase the Company's securities.

     The Initial Stockholders will be entitled to registration rights with
respect to their founding shares pursuant to an agreement to be signed prior to
or on the effective date of the Offering. The holders of the majority of these
shares are entitled to make up to two demands that the Company register these
shares at any time commencing three months prior to the third anniversary of the
<PAGE>

6. COMMITMENTS AND RELATED PARTY TRANSACTIONS (CONTINUED)

effective date of the Offering. In addition, the Initial Stockholders have
certain "piggy-back" registration rights on registration statements filed
subsequent to the third anniversary of the effective date of the Offering.

     Rodman & Renshaw has entered into a letter agreement with us pursuant to
which it agreed to purchase up to 125,000 warrants in the public marketplace at
prices not to exceed $1.40 per warrant during the 45 trading day period
commencing on the later of the date separate trading of the warrants has
commenced or 60 days following the consummation of this offering.

     Chardan Capital Markets has entered into a letter agreement with us
pursuant to which it agreed to purchase up to 125,000 warrants in the public
marketplace at prices not to exceed $1.40 per warrant during the 45 trading day
period commencing on the later of the date separate trading of the warrants has
commenced or 60 days following the consummation of this offering.

     On February 8, 2006, five stockholders entered into five separate letter
agreements with the representatives of the underwriters pursuant to which they
agreed to purchase in aggregate up to $2,000,000 in warrants at prices not to
exceed $1.40 per warrant during the 45 day trading period commencing on the
later of the date separate trading of the Warrants has commenced or 60 calendar
days following the consummation of the Offering. These entities have agreed that
any warrants purchased by them pursuant to this agreement will not be sold or
transferred until after a completed business combination. As of March 31, 2008,
these five stockholders held 20,000 warrants to purchase the Company's
securities.

7. PREFERRED STOCK

     The Company is authorized to issue 1,000,000 shares of preferred stock with
such designations, voting and other rights and preferences as may be determined
from time to time by the Board of Directors. As of March 31, 2008, the Company
has not issued any shares of preferred stock.

8. SUBSEQUENT EVENTS

     The board of directors of Asia Automotive Acquisition Corporation ("AAAC")
has unanimously approved the acquisition of Hunan Tongxin Enterprise Co., Ltd.
("Hunan Tongxin"), an operating company in the People's Republic of China,
pursuant to an Equity Acquisition Agreement whereby AAAC will purchase 100% of
the shares of Hunan Tongxin held by the stockholders (the "Hunan Tongxin
Stockholders"). The board of directors of AAAC also has unanimously approved the
simultaneous reincorporation of AAAC from the State of Delaware to the British
Virgin Islands through a Redomestication with TI. In the Redomestication, AAAC
will exchange its securities for the outstanding securities of TI.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

     This Quarterly Report on Form 10-QSB includes forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. We have based
these forward-looking statements on our current expectations and projections
about future events. These forward-looking statements are subject to known and
unknown risks, uncertainties and assumptions about us that may cause our actual
results, levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance or
achievements expressed or implied by such forward-looking statements. In some
cases, you can identify forward-looking statements by terminology such as "may,"
"should," "could," "would,""expect," "plan," "anticipate," "believe,"
"estimate," "continue," or the negative of such terms or other similar
expressions. Factors that might cause or contribute to such a discrepancy
include, but are not limited to, those described in our other Securities and
Exchange Commission filings. The following discussion should be read in
conjunction with our Financial Statements and related Notes thereto included
elsewhere in this report.
<PAGE>

     We were formed on June 20, 2005, to serve as a vehicle to effect a merger,
capital stock exchange, asset acquisition or other similar business combination
with an operating business. Our initial business combination must be with a
target business or businesses whose fair market value is at least equal to 80%
of net assets at the time of such acquisition. We intend to utilize cash derived
from the proceeds of our recently completed public offering, our capital stock,
debt or a combination of cash, capital stock and debt, in effecting a business
combination.

     Since our initial public offering, we have been actively engaged in
sourcing a suitable business combination candidate. We have met with target
companies, service professionals and other intermediaries to discuss with them
our company, the background of our management and our combination preferences.
In the course of these discussions, we have also spent time explaining the
capital structure of the initial public offering, the combination approval
process, and the timeline under which we are operating before the proceeds of
the offering are returned to investors.

Most of the activity from June 20, 2005 (inception) to March 31, 2008 relates to
the Company's formation and public offering described below.

Three Months Ended March 31, 2008

     For the three months ended March 31, 2008, we had net income of
approximately $4,800,000 consisting of interest income of $354,000, a gain on
warrant liability of approximately $5,047,000 and formation and operating costs
of $725,000. Interest income is derived primarily from investment of our cash
balances held in trust, which aggregated approximately $39,861,000 at March 31,
2008. The cash balance held in trust is invested primarily in treasury bills.

Three Months Ended March 31, 2007

     For the three months ended March 31, 2007, we had net income of
approximately $915,000 consisting of interest income of $471,000, a gain on
warrant liability of approximately $690,000 and formational operating costs of
$360,000. Interest income is derived primarily from investment of our cash
balances held in trust, which aggregated approximately $38,669,000 at March 31,
2007. The cash balance held in trust was invested primarily in treasury bills.

LIQUIDITY AND CAPITAL RESOURCES

     On April 19, 2006, we consummated our initial public offering of 5,031,250
units including an additional 656,250 units that were subject to the
underwriters' over-allotment option. Each unit consists of one share of common
stock and one redeemable common stock purchase warrant. Each warrant entitles
the holder to purchase from us one share of our common stock at an exercise
price of $5.00.

     Of the proceeds of the Offering, $37,418,000 (plus interest expense) is
being held in a trust account ("Trust Account") and invested until the earlier
of (i) the consummation of the first business combination or (ii) the
distribution of the Trust Account as described below. The amount in the Trust
Account includes $1,207,500 of contingent underwriting compensation, which will
be paid to the underwriters if a business combination is consummated, but which
will be forfeited in part if public stockholders elect to have their shares
redeemed for cash if a business combination is not consummated. Deferred
underwriter's fee is reflected on the balance sheet at $966,121, an additional
$241,379 is included in common stock, subject to possible conversion, for a
total of $1,207,500. The remaining proceeds may be used to pay for business,
legal and accounting due diligence on prospective acquisitions and continuing
general and administrative expenses.

     We pay Asia Development Capital LLC., an affiliate, an aggregate fee of
$7,500 per month which includes the cost of the office space and the cost of
other general and administrative services provided to us by such affiliate.

<PAGE>

ITEM 3. CONTROLS AND PROCEDURES

          Under the supervision and with the participation of management,
including our Chief Executive Officer and Chief Financial Officer, we conducted
an evaluation of the Company's effectiveness of disclosure controls and
procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of
1934, as amended (the "Exchange Act")) as of the end of the period covered by
this Quarterly Report on Form 10-QSB. Based on that evaluation, the Chief
Executive Officer and Chief Financial Officer concluded that our disclosure
controls and procedures have not been operating effectively as of the end of the
period covered by this report.

          In connection with the preparation of our Report of Form 10-QSB,
management identified a material weakness, due to an insufficient number of
resources in the accounting and finance department, resulting in (i) an
ineffective review, monitoring and analysis of schedules, reconciliations and
financial statement disclosures and (ii) the misapplication of U.S. GAAP and SEC
reporting requirements. Due to the pervasive effect of the lack of resources,
including a lack of resources that are appropriately qualified in the areas of
U.S. GAAP and SEC reporting, and the potential impact on the financial
statements and disclosures and the importance of the annual and interim
financial closing and reporting process, in the aggregate, there is more than a
remote likelihood that a material misstatement of the annual financial
statements would not have been prevented or detected.

               There has not been any change in our internal control over
financial reporting in connection with the evaluation required by Rule 13a-15(d)
under the Exchange Act that occurred during the quarter ended March 31, 2008,
that has materially affected, or is reasonably likely to materially affect, our
internal control over financial reporting.

<PAGE>

PART II - OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

There are no material legal proceedings pending against us.

Item 2. EXHIBITS

<TABLE>
<CAPTION>
Exhibit No.                   Description of Exhibits
-----------   --------------------------------------------------------
<S>           <C>
31.1          Section 302 Certification of Principal Executive Officer

32.1          Section 906 Certification
</TABLE>

<PAGE>

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

Date: May 22, 2008

By: /s/Rudy Wilson
    Rudy Wilson
    Chief Executive Officer
    (Principal Executive Officer)


By: /s/David J. Brophy
    David J. Brophy
    Chief Financial Officer
    (Principal Financial and Accounting Officer)