Summarize：www.chinabuses.org: Part One: sales of city buses are decreasing a little due to the worst markets needs
27,913 city buses were sold from Q1 and Q2, slightly down over last year.
Selling of city buses are vulnerable to national macro economy. In recent two years, central government carried out tight control on real estate and infrastructure, and government direct investment on city buses are decreasing. However, market needs for city buses are increasing due to larger urbanization and booming populations in cities. City bus markets are still one of the major bus markets in 2012, and that's why sales decreasing of city buses are less than that of China bus industry.
There are no major events such as Beijing Olympic, Shanghai Expo in the first half year, so no centralized purchasing happened. Sales of city buses are mainly in second and third-tier cities.
| |
12m+ |
11-12m |
10-11m |
9-10m |
8-9m |
7-8m |
6-7m |
5-6m |
| 2011 |
1,038 |
7,292 |
6,706 |
2,751 |
3,508 |
5,097 |
1,532 |
384 |
| 2012 |
910 |
9,173 |
5,797 |
2,750 |
4,115 |
3,549 |
1,243 |
262 |
| Growth |
-12.3% |
25.8% |
-13.6% |
0 |
17.3% |
-30.41% |
-18.9% |
-31.8% |
Part Two: City bus product under adjustment
With robust needs in large cities and second and third-tier cities, sales of 8-9m and 11-12m city buses are always the mainstream. City bus priority policies are fully carried out in first-tier cities and some second-tier cities, and nearly all city buses are replaced in some places. But the progress is rather slow in some third-tier cities due to easy traffic congestion, no-sufficient funds and chaos operation conditions. With the strong promotion policies conducted in 2009, more and more passenger cars are owned by ordinary family as a faster speed, and the local traffic is rather bad in some places, so need for city buses are increasing. Large quantity of mini cars is bought by some countryside areas, and that's why sales of buses less than 8m are decreasing in some rural areas.
Part Three: fierce competition on sales of city buses
We can see from above that sales of city buses are more and more stable; some major bus builders retain some relatively stable customers. Last century, sales of Huanghai buses dominate in many cities, and now customers have more options.
Yutong Bus is the leader on sales of city buses, and their market shares are from 14% last year to 16% this year, and they are still seizing more shares with their strong technology and brand advantages. However, market shares of
Higer Bus are from 14% to 7% this year, partially due to their adjustment of market shares and control of market risks.
In general sales of Yutong, Kinglong, Higer and Golden Dragon take one third of China city bus markets, and some local bus builders will long exist as they can meet some specialized needs and local government's support.
Part Four: Natural gas city buses highlight city bus markets
Central government implemented development of natural gas buses in 2012, and many bus builders place sales of NG buses as a new sales growth point, and many public transport companies are willing to buy more NG buses. Xinjiang Yining City plans to replace all existing buses to NG buses in three years; 1,000 NG city buses will appear in Dalian in the 12th five-year plan period; there will be 2,500 NG buses in Nongbo, Zhejiang province in 2015. 11,522 NG buses were sold from Jan. to June, and 8,228 of them are long haul buses. Currently there are 29 domestic bus builders producing NG city buses, and over 800 NG buses models have been declared by related competent ministry. Over 100 NG stations were built and the figure will become 300 this year.
