Five Bus Makers Invest 6.4 Billion on New Energy Buses

Thanks to the government"s supports and favorable policies, new energy buses are making new breakthroughs in China"s domestic vehicle market. A close look at the annual reports of six bus manufactured listed in A-share stock market shows that "new energy" is a frequently used word. Except Yaxing Bus, the other five bus makers have seven new energy bus projects under construction. The investment surpassed 6.4 billion RMB.

In Mar. 2014, Kinglong Automobile has started a project with an investment of 177 million RMB, which is planned to make key spare parts for new energy vehicles. After completion, Kinglong"s annual production volume will rise by 6,000 units, most of which are energy efficient and new energy vehicles, including citybuses, intercity coaches, special vehicles, etc. The company reveals that it will strengthen its efforts in developing new energy buses and expanding its overseas market in 2014.

GAC Group, which specializes in producing cars, is reported to start cooperation with BYD in the field of manufacturing new energy buses. In the joint venture with a staggering investment of 3 billion RMB, GAC Group holds 49% shares while BYD holds 51%. The company, located in Zengcheng City, will mainly focus on developing electric citybuses. According to sources, the new energy citybuses jointly developed by the two companies will be put into market at the end of this year.

Zeng Qinghong, General Manager of GAC Group points out that in collaboration with BYD, the company is chiefly eyeing the market in Guangdong. By 2015, 55,000 units of new energy buses will be put into operation in Guangdong, among which 10,000 units will be working in Guangzhou. Currently, the two parties are working closely to come up with the best charging systems for their green buses.

Given the fast growing momentum of new energy buses, businesses on the upper and lower stream will also reap a great deal of benefits. Songz, as a manufacturer of automobile air-conditioning devices, is now expecting to see higher profits and a rise in its profitability.