Analysis of China Bus Export Market in Jan.-Jun. 2010 Ⅱ

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Analysis of Exporting of City Buses in Bus Industry in Jan.-Jun. 2010

In Jan.-Jun. 2010, it has exported 1332 city buses, year-on-year growth of 301.20% (1000 units more), referring to amount of 449.0956 million Yuan, year-on-year growth of 336.27% in China. The average price is 337.2 thousand Yuan in this period of time and 27.2 thousand in Jan.-Jun. 2009.

The number of exported city buses accounts for 32.4% of the total in Jan.-Jun.2010 while 19.89% in Jan.-Jun. 2009. It tells the proportion of city buses increases, that is to say, the rising of city buses leads to the growth of exporting market in the first quarter of 2010.

Table: the exporting statistics of city buses in bus industry in Jan.-Jun.2010

（Unit：Vehicle; ten thousand Yuan）

Chart: the exporting statistics of city buses in bus industry in Jan.-Jun.2010

（Unit：Vehicle; ten thousand Yuan）

Shown above,

1. The number of exported Yutong city buses is the biggest (477 units), year-on-year growth of 453.49% and sales amount is 239.9206 million Yuan, year-on-year growth of 818.5%, ranking No.1.

2. Zhongtong Bus exported 238 city buses, year-on-year growth of 453.49%; export amount reached 157.198 million Yuan, year-on-year growth of 818.5%, ranking No.2.

3. King Long Bus exported 236 city buses, year-on-year growth of 146.42%; export amount reached 79.8832 million Yuan, year-on-year growth of 362.4%, ranking No.3.

4. Sunlong Bus exported 132 city buses and export amount reached 53.82 million Yuan, ranking No.4. It ranks No.19 in the domestic market in this period of time.

5. Higer Bus exported 172 city buses while 16 units in Jan.-Jun. 2009; export amount reached 51.91 million Yuan, year-on-year growth of 362.4%, ranking No.5.

6. Zonda Bus exported 161 city buses while 47 units in Jan.-Jun. 2009, and export amount reached 41.8694 million Yuan, year-on-year growth of 362.4%, ranking No.6.

7. Youyi Bus exported 249 city buses, year-on-year growth of 173.63%; export amount reached 41.83 million Yuan, year-on-year growth of 201.1%, ranking No.7.The overall growth of this company is not big in this period of time.

8. Foton AUV Bus exported 155 city buses while 101 units in Jan.-Jun.2009; export amount reached 38.2955 million Yuan while 23.6106 million Yuan, ranking No.8.

9. Changan Bus exported 156 city buses, year-on-year growth of 817.65%; export amount reached  31.72 million Yuan, year-on-year growth of 1328.8%, ranking No.9. The increasing of exported city buses actively promotes its development.

10. Ankai Bus exported 22 city buses (zero in Jan.-Jun. 2009) and export amount reached 29.46 million Yuan, ranking No.10.

Conclusion:

The growth rate of exporting of buses is obvious in Jan.-Jun. 2010; however, there are still some improvements as below for long-term good performance for China exporting market.

1. It is required to stabilize the existing markets and extend new markets. That means constant investments of resources, constant attention to market dynamics, and feasible marketing strategy. Also, it means to develop influence on the nearby regions to prevent putting all eggs in one basket. China’s bus exporting builders should consider adjusting overseas market layout and re-formulate strategy. For example, Yutong Bus has made great achievements through strategy adjustment: focus on South America, CIS regions, Middle East, Asia-pacific, Africa and Europe-America as development objective, and Cuba, Jamaica, Chile, Peru, Russia, Rumania and Slovakia as the main strategy countries. In particular, Yutong occupies 98% of market shares in Cuba, even though it rose the price of 40％ of the exported buses.

2. It requires confronting market demand based on actual change. The exporting structure of China bus market is changing. The number the exported light buses is big, however, the proportion is decreasing. The proportion and growth speed of medium-sized buses both increase. The growth rate of various types of buses ranks as light bus, medium-sized bus and large-sized bus. King Long performs well for sales (No. 1) in the filed of light buses.

3. It is better to adjust product marketing strategy to develop own advantages. The products chain for exporting bus builders is long, referring to more than 100 types. It is not uneconomical to receive all orders without selection and costs a lot in after-sales, dealer management and investments of corporation.

4. It is better to guide overseas customers and offer active consulting marketing service. The core competitiveness not only shows in products, but also brand construction and sales team in the mature overseas bus market. Especially, the degree of similarity of bus products is high. As for a good bus builder, you should learn better about your competitor such as product type and potential difference including .low cost service, brand value, suggestions beneficial for customers, which makes your sales mean consulting for customers. Good suggestion is a value-added service by itself; therefore, consulting marketing service is a good marketing strategy to surpass competitors.

5. Under the pressure of appreciation of the RMB, it requires price strategy adjustment. The profit is low for bus industry, and the price strategy should be adjusted to confront growing cost, uncertain international factors and fierce competition. The bus builders can make it according to the various products.

6. It requires transferring marketing concept and emphasizing brand marketing. At present, the effect of brand construction of bus builders has been displayed in China but not obvious in international market. The credibility of some advantageous brand is high with obvious market effect in the international market through enlargement of market scale. Therefore, these brands will be outstanding among the general brand “China bus”. 

7. The influence of American subprime crisis on exporting of China buses is not eliminated and economy of some countries have not yet recovered, so those factors should be considered for international strategy.