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The Challenge of China Buses & Coaches Industry

2008-09-02    Source:english.chinabuses.com

In 2008, China has many opportunities to develop. As for China buses & coaches industry, it faces big challenge in this year. One is high world crude prices, which led China to raise benchmark gasoline and diesel oil retail prices by 1,000 yuan (147U.S. dollars) per tonne. Citigroup economist said that with the consumer price index falling to a 10-month low of 6.3 percent last month, there might be another increase in fuel prices after the Olympics, as the government control of fuel prices was meant to curb inflation.


Another issue is costs. Production costs were rising as the prices of inputs like electricity, steel, rubber, glass and plastics had been rising since the second half of last year, which added to the burdens of buses&coaches manufacturers.


Third is China's tight monetary policy. Curbing commercial loans and raising interest rates to avoid economic overheating is creating challenging conditions for industry as the second half proceeds.



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