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The Road of China Buses Part III

30-09-2007

Growing markets and quality

Although the price of each bus is still low with comparing to the products from MAN and Volvo, the market grows very fast. The price of China buses increased from an average of $16,400 per unit in 2004 to $30,100 per unit in 2005, and in 2006, the average over $33,750 US dollars.

Yutong's buses sold to Cuba even reached as high as $70,000 per unit last year. China bus manufacturers also began to find their own trade opportunities instead of waiting for orders as before. Mr. Xu, who came from Suzhou Kinglong, said to China Business Weekly that when the Qatar government prepared for the Asian Games, their first consideration of purchasing buses is from Europe. "The order is there. So we invited the officials immediately to our Suzhou factory to pay a visit" he says. "Due to our active approach, Suzhou Kinglong successfully won the big order from Qatar". Xiamen Kinglong signed a cooperation agreement with Ukraine last year to export 500 complete knocked down (CKD) buses within two years. Zonda Industrial Group in Yancheng of East China's Jiangsu Province also exports CKD units to Vietnam, with 50 assembly sets sent last year and 2,000 more CKD units scheduled this year.

At present, domestic bus manufacturers start to target the developed regions, such as USA, Australia, Great Britain, New Zealand, etc. Europe and North America is the potential markets. This is not only because of the huge potential market there, but also it has the most strict market standards in the world.

As for the developing markets, such as Eastern Europe, the Middle East, Southeast Asia, Africa and Latin America, etc, some bus manufacturers have successful and stable footholds. "Science and technology decides leading, Harmonious roots solicitude." China buses will hold the new chance and challenge, keeping the same step of the period.
(The end)



Editor:Frederick Wei from Chinabuses.com


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