Bus-Makers to Explore Three Markets For Growth
2008-12-23 Source：www.chinabuses.org
The global financial crisis has dealt a heavy blow to China's bus sales. In October, there were 21,900 buses sold in the Chinese market, down 17.49% month on month, down 13.18% year on year, said Auto Industry News today. Many bus makers are expected to seek their sales growth in the public transportation, rural bus service and bus exports.
Guangdong Midea Group, China's home appliances giant, has come up against a brick wall five years after its high-profile foray into the auto industry. Midea has suspended its bus production, and Midea Bus is discussing about partnership issues with bus-maker Zhengzhou Yutong Group. Midea Bus has disclosed that it will not accept new orders until the top management gives the approval.
Amid the financial crisis and market slump, bus-makers in China are seeking ways to boost their sales in three market sectors: the public transportation, the rural bus service and bus exports to some countries and regions. The Chinese government has started its rural transportation network program to link bus services with all village units across the vast country. This means a huge market for China's bus manufacturers.
In the first eleven months this year, Huanghai Bus produced 3,965 buses and sold 4,366 buses for public transportation. This segment has ensured steady sales growth for the company to ease the impact of the financial crisis on its newly launched travel coach making project.
The overseas market is seen as a good way out for Chinese bus makers. King Long United Auto, a Xiamen-based bus and coach maker, expects its export revenue to rise by 90% this year to $200 million, defying the global auto market downturn. The company will chalk up 5.3 billion yuan ($774 million) of sales, 25% of which will come from its overseas business.
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