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China Buses Gear up for World Market (2)

Chinese bus makers, with their advantage in labor cost and market scale, have built up their competitive edge on the world market. Take Yutong as an example. It won more than 140 million US dollars worth of order for its 2,400 buses. It exports to some 30 countries and regions in America, Africa, Middle East, Russia and South Asia. Other major Chinese bus makers, including King Long and Golden Dragon, have also expanded their offshore market.

Unlike the conventional practice of "exchanging market for technology", leading bus makers like Yutong and Kong Long have independently developed their own technologies and brands, which have to some extent improved the structure of Chinese auto exports which is characterized by low market, lower prices, low profits, and low quality.

Yutong's prices are very close to those of its arch rival South Korean buses. It has China's only national technical center and first post-doctorate station. It exported not only components and buses, but also technologies and brands to Cuba. That has created the largest order in China's bus export, which has significant influence on the market and the world. King Long has been increasing its investment into research and development.

Shen Ningwu, vice secretary-general of China Association of Automobile Manufacturers, recalled Dong Feng Automobile's exports to Philippines 10 years ago, which ended up with consumers losing confidence in Chinese products due to Dong Feng's failure to provide maintenance service and auto parts supply.

After-sale service is indeed Achilles heel of Chinese auto exporters. But giants like Yutong and King Long have made difference now. Yutong, for instance, has its marketing networks in nearly 20 countries and regions and has built six parts centers in Cuba, South America, Russia, Egypt, and Dubai. A spare parts warehouse is also operational in Cuba which has bought 800 Yutong coaches.

In 2005 China exported 170,000 automobiles, soaring 120 percent over 2004. 6,433 of them were coaches. That is the first time that China has exported more autos than it has imported.