New Strategy of King Long Bus for the Challenge of High-speed Railway
2010-06-22 Source：www.chinabuses.org
Summarize：www.chinabuses.org: The domestic auto transport is seriously affected by the forthcoming era of high-speed railway. It is also a challenge for Kinglong Bus, actually about 40% of its sales come from highway bus transport. Recently, it is known from Kinglong Bus that Kinglong Bus has started to adopt the strategy of "Countryside Surrounding City" to seize the opportunity of the markets in the second or third line cities and rural passenger transport market.
www.chinabuses.org: The domestic auto transport is seriously affected by the forthcoming era of high-speed railway. It is also a challenge for Kinglong Bus, actually about 40% of its sales come from highway bus transport. Recently, it is known from Kinglong Bus that Kinglong Bus has started to adopt the strategy of "Countryside Surrounding City" to seize the opportunity of the markets in the second or third line cities and rural passenger transport market.
Strive for the markets in the second or third line cities
"The impact of the high-speed railway on passenger transport companies is no doubt."said Xue Xiangdong, the deputy general manager of Kinglong Bus. The decline range of buses is the sharpest, while the recovery speed is the slowest. High-speed railway directly affects the operation of hot travel routes of highway bus transport, also makes a big influence on Kinglong Bus.
Xu Xiangdong revealed, "Kinglong Bus is actively confronting such great challenge." Based on the research, the impact of the high-speed railway is comparatively small in the second or third line cities. With the increasing development requirements of medium, small cities as well as urbanization, Kinglong Bus adopts the strategy of "Countryside Surrounding City" and holds the markets in the second or third line cities as the major supporting point for future sales achievements.
Kinglong Bus has formally launched intercity bus XMQ6120C and obtained big orders from Beijing, Shenzhen and Hangzhou, moreover, the sales volume has exceeded 400 units in a short time. In addition, Kinglong Bus issues light bus products and 7.5-meter bus with rear engine for market demand and develops some new market segments.
Sales Objective of 6 Billion Yuan
This March, Kinglong Bus brought forward the sales objective of 6 billion Yuan in 2010. However, it is suspicious for some experts because that the high-speed railway is open and highway bus routes are shrinking in some areas. As for that, Xu Xiangdong replied that "Kinglong Bus has the accumulated sales of 8,819 buses in the first 5 months, year-on-year growth of 121.2%." He showed that the sales objective was reasonable and reachable for them.
Also, he showed that the "Xiamen Auto Industrial Town" in Jimei has formed the auto industry chain with Kinglong Bus as the head, which worthy 10 billion Yuan, covering more than 20 auto products suppliers. It offers favorable conditions for Kinglong Bus for efficient, quick and low-cost resources. Meanwhile, Kinglong Bus opens the markets in the second or third line cities based on the selling points in large cities.
It is known that the month production of light buses for Kinglong Bus has come to over 700 units. In May, the single month sales of light buses has broken 1000 units. In the first five months, the accumulated sales volume of light buses is 3,725 units, year-on-year growth of 640.56%. At present, Kinglong Bus ranks in the top five in major China bus builders for light buses.
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