Declining of the Sales Growth of China Bus Industry in the first Quarter 2011

www.chinabuses.org:  According to the statistics data from 50 mainstream bus builders, it sells 47001 buses & coaches in total in the first quarter 2011, year-on-year growth of 18.0%.

Buses & Coaches in the first quarter 2011

Big Growth of Seat Buses

The big sales growth of light buses below five meters (275%, almost 6300 units more) leads to the dramatic increasing of seat buses. Four main reasons are considered as following:
Firstly, the strong market demand is aroused by the passenger transport during the period of the Spring Festival. Secondly, King Long Bus, Higer Bus and Golden Dragon Bus all hold the further opening of the light bus market as the market strategy. Thirdly, the rural bus market develops well due to the national policy support on the further investment on the construction of the rural roads. Fourthly, the large passenger flowing among cities, villages and towns accelerates the market demand on the light buses below five meters.

Decreasing of City Buses

The data says that the decreasing of the sales of city buses mainly is caused by the dramatic reducing of 8-9 meter ones, almost 1200 units less over the same period of the last year.

Actually, the tightening of the national monetary policy affects a lot on the purchasers depending on the government funding, in particular, the ones in medium and small cities.

In addition, the sales on new energy city buses grow above 50% in Jan.-Mar. 2010 while only 22.8% in Jan.-Mar. 2011.

Pervasive Decline on the Sales Growth in the Bus Industry

In the first quarter, the sales growth range of China bus industry is lower than in 2010. The main factors make influence on such condition:

Firstly, in 2010 when national economy develops fast, the active national monetary policy stimulates the domestic demand and issues a series of incentive policies on auto industry. Secondly, the state raises the bank reserve requirement for many times to control inflation, which greatly reduces the purchasing power of the customers who rely on bank loan. Thirdly, the sales growth of the buses in Jan.-Mar. 2010 is obviously bigger than other months in the same year.

New Energy in Tourism Bus Market

In the first three months of this year, the sales volume of new energy buses (natural gas buses included) is 1910 units, accounting for over 96.7% of the new energy commercial vehicles, especially, large and medium buses.

The data says the sales of the new energy tourist coaches take about 2% of the almost 9000 tourist coaches, mainly referring to CNG buses, some hybrid power and electric buses. However, the development of hybrid power and electric buses are not mature enough as the mainstream products in the tourism bus market currently, besides the CNG ones in Sichuan and Chongqing where there is rich gas resources.

Major Reasons: it has high demand on tourist coaches for long constant driving range above 300 kilometers because of the intercity passenger transport, also, convenient, easy and timely energy supply. At present, electric vehicles are only suitable for the tourist routes in small regions with the constant driving of less than 300 kilometers.