Sales Analysis of Medium & Large Coaches in Jan. - Feb. 2012 Ⅰ A

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Part One: The features of medium & large coaches sales in Jan.- Feb. 2012

The market share of medium & large coaches in China shows small at both ends and big in the middle, that is, the coaches valuing RMB 0.2~0.5 million account for the most market share of the large & medium coaches; the coaches valuing below RMB 0.2 million and above RMB 0.9 million account for the smallest proportion of the large & medium coaches market share.

Table One: Sales proportion statistics of large & medium coaches in various price ranges in the first two months of the past six years    

Chart One: Sales proportion statistics of large & medium coaches in various price ranges in the first two months of the past six years

From above data, it is seen that
　　

1. In the first two months of the last six years, the sales proportion of medium & large coaches valuing below RMB 0.2 million shows small range downward trend, which the total sales proportion in Jan.- Feb. of 2007 is 15.88% but in 2012, it is 13.56%. And now the segment market of the medium & large coaches valuing below RMB 0.2 million ranks top five in the current medium & large coaches market.
　　

2. In first two months of the last six years, the sales proportion of medium & large coaches valuing RMB 0.2-0.3 million shows small range upward trend, which is the contrary trend of the valuing below RMB 0.2 million medium & large coach market. In Jan.- Feb. of 2007, the total sales proportion of medium & large coaches valuing RMB 0.2-0.3 million is 21.6%,and in 2012, it is 22.62%. At present, the segment market of the medium & large coaches valuing RMB 0.2-0.3 million ranks top two in the current medium & large coaches market.
　

3. In first two months of the last six years, the sales proportion of medium & large coaches valuing RMB 0.3-0.4 million shows small range unstable state. In Jan.- Feb. of 2007, the total sales proportion of medium & large coaches valuing RMB 0.3-0.4 million is 24.12%; in 2009, it increases which is 24.45%; in 2010, it decreases, which is 23.93%. At last, in 2012, it increases, which is 24.31%. It is seen that the total sales proportion of medium & large coaches valuing RMB 0.3-0.4 million in the last six years are around 24% which account for the biggest market share in China medium & large coaches.
　　

4. In first two months of the last six years, the sales proportion of medium & large coaches valuing RMB 0.4-0.5 million shows stable state. In Jan.- Feb. of 2007, the total sales proportion of medium & large coaches valuing RMB 0.4 -0.5 million is 22.22%; in 2008, it increases, which is 22.8% and in 2009, it decreases, which is 22.02%. At last, in 2012, it increases, which is 22.5%. It is seen that the total sales proportion of medium & large coaches valuing RMB 0.4-0.5 million in the last six years is in the overall stable state, which at present ranks top three in the current medium & large coaches market.
　

In first two months of the last six years, the sales proportion of medium & large coaches valuing RMB 0.5-0.9 million shows irregular unstable state. But the total sales proportion of medium & large coaches valuing RMB 0.5-0.9 million in the last six years are around 14%～15% which now ranks top four in the current medium & large coaches market
　　

In first two months of the last six years, the sales proportion of medium & large coaches valuing above RMB 0.9 million is the smallest one in the China medium & large coaches market. But its market share shows gradually upward trend. In Jan.- Feb. of 2007, the total sales proportion of medium & large coaches valuing above RMB 0.9 million is 1.31%. Since then, it gradually increases each year. In 2012, it increases, which is 1.60%. Though the sales proportion is small, but the market share data obviously shows its upward trend, which is due to the promotion of the new energy buses & coaches (including hybrid & pure electric buses & coaches) in recent years.
　　

The sales proportion of medium & large coaches valuing above RMB 0.3-0.4 million is the biggest one in the China medium & large coaches market. Then it is followed by RMB 0.2-0.3million worth of coaches and RMB 0.4-0.5 million worth of coaches. In the first two months from 2007 to 2012, the sales proportions of medium & large coaches valuing above RMB 0.2-0.5 million are 67.94%, 68.91%, 68.7%, 68.6%, 69.18% and 69.43%. It is seen that the sales proportion of RMB 0.2-0.5 million worth of medium & large coaches account for the absolute proportion of the current medium & large coaches market. 　　

Based on the data analysis, the following is to analysis the changes of the medium & large coaches markets. 
　　

The coaches in rural areas have bigger space to develop, which is closely related to Chinese policies, that is, the projects of integrated passenger public transportation in the urban & rural areas and the rural passenger public transportation. It is known that in recent years, the increasing demand from rural passenger public transportation highlights the coach market. Through further analysis, it is found that the increasing demand is not only for the sales volume of the coaches, but also for the high level requirement on the demanding coaches. It is the time for renewing the old coaches.

With the increasing requirements from the rural areas customers on the coach product's safety, comfort, and beauty etc. overall performance, which means the customers want to purchase higher level coaches so the lower level of medium & large coaches valuing below RMB 0.2 million could not meet the current rural market demands, so its sales have decreased these years. On the other hand, as the roads in rural areas have been gradually rebuilt, so the most original medium & large coaches valuing below RMB 0.2 million have to be gradually out of the roads.
　　

Since July 1st 2008, China government has required engine emission standards should renew from National Ⅱ to National Ⅲ. Due to the price difference between these two emission standards engines, the unit price of the original medium & large coaches valuing below RMB 0.2 million increased and was more than RMB 0.2 million, which results in the decreasing of the sales volume of the medium & large coaches valuing below RMB 0.2 million.
　

3. With the decreasing sales volume of the medium & large coaches valuing below RMB 0.2 million, the sales volume of RMB 0.2-0.3 million worth of medium & large coaches have increased.　　

4. The medium & large coaches valuing RMB 0.3-0.4 million, RMB 0.4-0.5 million, RMB 0.5-0.9 million are the corresponding products on the above 8 meter-sized medium & large tourism coaches, inter-city buses & coaches and some group or organization used coaches. With the China economic gradually developes, the segment markets of the above medium & large coaches also show gradually increasing, but not so rapidly increasing as the rural coach markets. So their sales proportion is also in a relative stable state without ups and downs.　　

5. As for the medium coaches valuing RMB 0.3-0.4 million, it is suitable for both the market need and the customer's purchasing power. In rural countries and small & medium cities, the coaches which run in a short or medium distance are in the length of 8m-9m and their price is in  RMB 0.3-0.4 million. In big cities, the price of 70% 10m-12m buses is also in RMB 0.3-0.4 million. And in these years, the demand of these two length buses & coaches are big which also contributes to the sales volume of the medium coaches valuing RMB 0.3-0.4 million.　

6. In recent years, the increasing sales of the new energy buses & coaches have pushed the increasing of the luxurious coaches market which values above RMB 0.9 million. According to the statistic, in the first two months of last three years, the average increasing rate of the new energy buses & coaches reaches 40.7%, among which, the hybrid buses & coaches sell most, then the pure electric buses & coaches.  According to the market research, the average unit price of the hybrid coaches is around RMB 0.7 million, and average unit price of the pure electric coaches is around RMB 1.7 million. China local governments have actively supported the development of the tourism, which is to stimulate consumption. So the market share of the luxurious coaches have increased.