China Bus Exports Grew 9.76% in May

www.chinabuses.org: According to the latest statistics, China’s bus exports grew by 9.76% in May, which was nearly three percentage points higher than the overall growth rate of the commercial vehicle export in the same period, showing that the bus export was the main force for the overall export growth of China’s commercial vehicle export.

In May this year, China’s auto export growth remained weak, the same as that in the last year. The total export volume of automobiles in May stood at 76,711 units, up by 2.28% year on year (the export volume of automobiles registered at 74,999 units in May 2014). The export of commercial vehicles totaled 24,330 units, up by 6.76% year on year (the export of commercial vehicles numbered 22,789 units in May 2014). The export of commercial vehicles accounts for 31.7% of total auto exports and the growth rate of commercial vehicles exports is higher than that of all automobiles exports.

Also worth mentioning is that the whole vehicle export is the main force in China’s commercial vehicle export. The total volume of whole vehicle export stood at 22,589 units, accounting for 92.84% of the whole commercial vehicle export, slightly lower than the percentage at the same period last year. Over 70% of commercial vehicle exports were trucks, playing a predominant role in China’s whole vehicle export. The export volume of semi-trailer towing vehicles, non-complete buses, or non-complete trucks, failed to surpass 5% of the total commercial vehicle exports. The export of non-complete buses came the last.   

Exports of Commercial Vehicles in May 2015 (Unit: unit, %)

A review of the bus export (including non-complete bus export) shows that Higer, King Long and Yutong succeeded in selling over 1,000 units buses in the overseas market in May this year. Yutong witnessed the fast export growth, with a export growth rate standing at 132.9% year on year. King Long, with a monthly export volume of 1,253 units in May, held nearly one quarter of the whole bus export market. However, King Long’s export went down by 15.3% year on year.

Bus (non-complete included) Exports of Main Manufacturers in May 2015 (Unit: unit, %)

Despite the fact that the total export of buses was not as large as that of trucks (including semi-trailer towing vehicles, non-complete trucks), the export of buses (including non-complete buses) delivered a more optimistic performance compared with that of the export of trucks (including semi-trailer towing vehicles, non-complete trucks). In 2014, the export of buses realized a positive growth, which was an impressive accomplishment in the lackluster commercial vehicle export market. At the beginning of 2015, a number of domestic bus makers continued to make stronger efforts in exploring their overseas market. The globally mindedly Yutong, for example, rolled out a brand new passenger transport solutions, aiming at providing customer-tailored products and services and strengthening its international presence. In the meantime, the bus maker stroke a deal with Havana, the capital city of Cuba, planning to replace all city buses with Yutong bus fleet by 2016. The deal not only includes the purchases of large buses, but also the provision of after-sale services, the technological supports. BYD, another famed green vehicle maker, also succeeded in selling its electric buses in Malaysia, Brazil and other South American nations.

Among the top ten destinations of Chinese buses, Iraq ranked the first. Also among these nations, Algeria saw the biggest jump in its import of Chinese buses while UAE witnessed the biggest drop.

Chinese bus export’s monthly growth rate of 9.76% in May this year may seem an alarmingly sharp decrease compared with over 50% growth rate registered in the previous few years. The following factors have all contributed to the big drop:

First, the demand may not be as strong as that a few years ago. The export volume maintained a robust growth, but China’s bus makers are all faced with large inventories and uncertain market conditions.

Second, the United States and other developed nations has been gradually recovering in their economies while the emerging economies has been showing signs of slowdown. Against such an unfavorable global market environment, plus the trade barriers, fluctuations of the exchange rates, etc., China’s bus makers are all confronted with a host of challenges. To ensure the continued growth of China’s bus export, the industry needs more favorable government export policies. In the meantime, all bus makers must take preventive measures against the unfavorable international market conditions in order to maintain a sound and fast growth in the global market.

Third, China’s bus export in May also saw fluctuations, with a higher growth rate in the earlier half of the month, but the market showed visible signs of slowdown in the latter half of the month. Given this, more uncertainties make the bus export in China less predictable. Chinese bus makers need to make more efforts in assessing and feeling the pulse of the global bus market so as to beat their rivals and maintain fast growth.