China's four guest companies will compete for overseas markets

On September 10, the organizer of the IAA, the world's largest commercial vehicle show in Germany, told reporters that the Hannover Commercial Vehicle Expo 2010 will be held in Hannover, Germany from September 23 to 30. Zhengzhou Yutong Bus Co., Ltd. Four Chinese bus companies, including the company, Xiamen Jinlong Automobile Group Co., Ltd., Zhejiang Jinhua Youth Bus Group, and Zhongda Automobile Group Co., Ltd., participated in the exhibition to compete for overseas markets.

This is the first time that China’s commercial vehicle companies collectively debuted at the international auto show on a relatively large scale after the financial crisis. Among them, Yutong and Young Bus are participating in the Hanover Motor Show for the first time. The reporter was informed that Yutong’s major leaders from overseas have gone to the Hanover Motor Show. According to industry analysts, the economic recovery in Europe and the increase in the strength of China's commercial vehicle companies urgently need to open up overseas markets as the main reason for China’s four bus companies exhibiting.

Wang Xiang of Yutong’s Overseas Markets Department said that the European market in 2010 will be one of Yutong’s important breakthroughs overseas. Yutong Company stated that it will carry out technological transformation projects for 20,000 buses through self-financing, bank loans, etc. The capacity will be expanded to 50,000 units in the next two years, and exports will be an important way to increase sales. Wu Xiaoguang, marketing manager of Yutong Bus Group, stated that Yutong attaches great importance to the overseas market. This year Yutong’s first exhibitors are expected to export 4,000 units this year.

Yutong Bus fully recovered its exports in the first half of the year and successively delivered batches to Africa, South America, and the Middle East. Affected by this, the company sold 16,983 passenger cars in the first half of the year, an increase of 49% year-on-year, of which large, medium and light passenger cars sold 6,939 cars, 8075 cars, and 1969 cars respectively. The combined sales volume of large and medium-sized passenger vehicles increased by 55% year-on-year, which was significantly higher than the industry average (39.6%). The company’s domestic market share increased by 2.5 percentage points from the end of 2009 to 21.7%.

Guoxin Securities analyst said that the annual sales of the bus industry are characterized by "low before and after high", and the fourth quarter of each year is the traditional peak season. At present, the domestic sales and exports of Yutong buses in the large and medium-sized bus industry are steadily increasing. It is expected that Yutong’s sales and profitability in 2010 will exceed the first half of the year.

A manager of the Zhongda Bus Planning Department told reporters that the total sales volume of Zonda Bus in 2010 is 3,000 units, and plans to sell 40% of the total sales in overseas markets, an increase of 20% over the same period of last year.

The Youth Bus will exhibit a luxury passenger car and a low floor bus. The current show car has been shipped to Europe.

Jinlong Bus stated that in recent years, Jinlong Bus has stepped up its pace of going out and overseas sales have steadily increased. As of the end of August, Jinlong Bus has cumulatively exported 4096 passenger cars this year, an increase of 155% year-on-year, and the export volume has exceeded the whole year.

On September 8, Alix Partners, a global business consulting firm specializing in the automotive industry, released the 2010 global commercial vehicle industry outlook report. According to the report, from 2010 to 2014, the world will increase the production of medium- and heavy-duty trucks (greater than 6 tons) to approximately 1.8 million vehicles, of which China will account for 24% of the new production and about 439,000 vehicles. Become the world's largest manufacturer of commercial vehicles.

The biennial Hannover Commercial Vehicle Show in Germany is the platform to showcase the latest technologies of international commercial vehicles. Internationally renowned coaches, trucks, special vehicle OEMs and parts and components companies will participate. The number of companies participating in the auto show in China is relatively small. At the 62nd Hanover Motor Show in 2008, only one company, Jinlong, participated in the Chinese bus company, and the heavy truck company FAW liberated the J6 heavy truck.