Analysis of Highway Bus Market in Jan.-Apr. 2010 Ⅰ

www.chinabuses.org:

The General Analysis of Highway Bus Market in Jan.-Apr. 2010

Table 1: the sales statistics table of highway buses in Jan.-Apr. in 2009 & 2010 (Unit: Vehicle)

According to the statistics of industry research center, it sells 57,957 large and medium buses in the first four months for 50 representative China bus builders with the market share of over 95% in the large-sized and medium-sized bus market, including 41, 011 highway buses (taking 70.76% of the total sales, almost 4 percent more than 67% in 2009), which indicates the market proposition of highway buses is rising. Also, the sales volume of seat buses is 39,798 and accounts for 97.04% in the sales of highway buses, meanwhile, sleeper buses:1213，nearly 3% in total.

Shown above:

It has year-on-year growth for highway buses in Jan.-Apr., referring to 22,622 units more, growth rate: 64%. The sales of seat buses grows 16,627 (71.67%); sleeper buses grows 495 (68.94%). It shows that the increasing of seat buses mainly promote the growth of highway buses in Jan.-Apr., 2010.

It grows 44.5% for the sales of city buses and 71.67% for the sales of highway buses compared with that over the same period in 2009. That is to say, the good trend of the overall bus market depends on the rising of the both city bus market and highway bus market.

Analysis of Highway Bus Market for Mainstream Bus Builders in Jan.-Apr. 2009 & 2010 

Table 2: Sales table of top 15 highway bus builders

Chart 1: Sales chart of top 15 highway bus builders

Shown above:

For these 15 builders, it sells 35,480 highway buses in Jan.-Apr., 2010, which accounts for 86.51% in the sales of 50 bus builders (41,011 in total). While it sells 20,007 highway buses in Jan.-Apr., 2009, which accounts for 83.74% in the sales of 50 bus builders (23,889 in total).

1. The general trend of highway bus turns on rising in Jan.-Apr. 2010. By comparison of sales in Jan.-Apr. 2009 and 2010, it grows 15,473 units with rate of 77.33%.

2. Among 15 builders, the positive sales growth differs: Yutong Bus (3,704 units); Kinglong Bus (3,550 units); Golden Dragon Bus (1,786 units) and Higer Bus (1,656 units).

3. For 15 builders, the market concentration of the highway buses comes to 86.51% in the first four months 2010, basically similar to 86.78% in 2009. It indicates that the degree of monopoly is always high. Meanwhile, the market share of other bus builders is shrinking for the factors as followed:

a. The resources of highway bus market lean to competitive companies and then the market share of other weak builders is compressed.

b. Overall, the market share of highway buses takes about 70% in the whole bus market, moreover, the profit margin of highway buses is more than that of city buses, and therefore the competitive bus builders pay more attention to highway bus market.

c. It is hard to change this style and the competition will be fiercer due to highway railway.

4. The total sales goes up and the market concentration is high. It indicates that on the one hand, the brands of the mainstream bus builders are acceptable in the market and the several leaders still divide and master the situation. On the other hand, the the competition is stiff and the market chance for other weak builders is smaller and smaller.

5. For 15 bus builders, the operation quality is comparatively high for Kinglong Bus, Higer Bus, Golden Dragon Bus, Yutong Bus and Youngman Automobile. The profit mainly comes from the highway buses for the builders, which are the main products.