Four Features for China Large and Medium Bus Market in Jan.-Jun.2011 (Ⅰ)

www.chinabuses.org: According to the sales statistics from almost 50 mainstream bus builders, the sales volume of China buses & coaches is 103912 units in the first half of this year, year-on-year growth of 12.4%, almost 38% less than last year (50.12%).

medium bus

Biggest Growth Fall Shows at Tourist Coaches

In large-sized and medium-sized bus market, the sales growth rate of seat buses reaches 14.6% (over 70% market shares), such growth rate of seat buses is the highest, and then of city buses, of tourist coaches and negative growth of sleeper buses.

Main Reasons:

Firstly, credit squeeze affects the potential bus purchasers and this is the eleventh time of the raising of the bank reserve in recent two years.

Secondly, the raising of deposit and lending rates lead to higher operation costs for the companies. Also it makes influence on the purchasing plan for new shuttle buses, tourist coaches and city buses for the purchasers.

Thirdly, fiercer competition against motor train units and CRH (China Railways High-speed) and heavier pressure on large, medium seat buses and sleeper buses.

Fourthly, soaring prices of commodities and fuel prices increase the operation cost of large and medium buses by almost 20% while the ticket price has not been raised.

Fifthly, the sales of large and medium coaches dramatically grow in 2010, many operators purchased the products in advanced.

large bus

Further Higher Market Concentration

The market shares of Yutong, King Long, Higer and Golden Dragon increase year by year and the degree of the concentration is higher. Based on the sales of the buses above seven meters for these bus builders, we find that firstly, the sales of these builders for such types are positive growth, apart from Higer; the growth rate of four builders in Jan.-Jun. 2011 all is lower than 2010; thirdly, the market shares of four builders are 47.8% of the industry, year-on-year growth of 0.32%; fourthly, the sales growth rate decrease while the market concentration is increasing.