Overseas Market Becomes New Driving Forces for China’s New Energy Buses

 

 

In 2009, China officially launched a new initiative which aims at putting 1,000 units new energy buses in each of the ten designated cities in across China. Since then, the new energy bus industry has been growing robustly. So far, China has accumulated rich experience in developing and operating such environmentally friendly vehicles and the nation’s manufacturing technologies of new energy buses have reached or even exceeded the international standards. Yutong, the leading bus maker in China, sold over 26,000 units new energy buses in 2016 alone, making it the world’s No.1 new energy bus maker.

 

 

Compared with China, countries in Europe, where a few internationally famed bus brands are located, have seen only slow progress in this promising field due to governments and enterprises’ much less enthusiasm. They are yet to learn much more in the production, sales and operation of new energy buses. 

 

 

Now, even without government’s subsidies, new energy buses from China still hold an edge against traditional buses. According to a report released by Daimler, the average price of a Benz bus chassis is 100,000 euros. After putting all spare parts together, the bus will cost about 1.5 million RMB. In contrast, a BYD K9 electric bus is priced at 1.8 million RMB. Considering the much higher fuel costs of those buses fueled by diesel, a BYD K9 electric bus is still competitive. 

 

 

While actively promoting new energy buses in the domestic market, China has also spared no efforts in expanding its business presence of such environmentally friendly vehicles in the overseas market. As early as 2009, King Long exported China’s first hybrid city bus to Singapore. Not long after, Yutong, Higer, Golden Dragon, BYD and several other well known bus brands in China have succeeded in set up their own presence abroad. 

 

 

Currently, China’s new energy buses enjoy huge popularity in South America, the Middle East and Africa. Even in Europe and other developed regions, Chinese new energy buses have been gaining increasing recognition from local bus operators and passengers. In 2015 at World Climate Conference held in Paris, Yutong electric bus was put on display as the only bus brand from outside Europe. Also at Busworld Expo in Belgium, Yutong electric bus made a high-profile debut in the European market and was later put into operation in Paris and a number of other cities in Europe. In March, 2016, Golden Dragon and a Dutch bus maker jointly rolled out an electric city bus with whole aluminum body structure. The new vehicle soon received orders from France-based Transdev. So far, Golden Dragon whole-aluminum electric city buses have made their way in Netherlands, France and Norway, etc. BYD, the world’s largest electric vehicle manufacturer, has also successfully entered U.S.A., Canada, South Korea, the UK, Netherlands, and Australia, etc. To date, the number of BYD electric buses working in the overseas market has reached over 10,000 units with an accumulated mileage of 200 million kilometers. They have realized commercial operation in over 170 cities in more than 50 countries across the world. 

 

 

In recent years, new energy buses have not only kept a fast growing momentum in the domestic market, but also delivered impressive sales performance in the overseas market. According to some estimates, China takes up one third of the world’s total demand for medium- and large-sized buses and coaches, which stands at about 500,000 units each year. Developed countries, such as Japan, South Korea, U.S.A., and those countries in Europe, account for a share slightly more than one third. The rest goes to India and those developing countries in South America. 

 

 

Against the backdrop that the whole world is combating agasint climate change and deterirating environmental problems, new energy vehicles have given us hope and are providing the way. Thus, China’s bus makers are blessed with precious business opportunities. 

 

 

In some countries, some brands from China has long become the dominant one in the local market. Take Yutong for example, it accounts for 99% bus market in Cuba. On October 31, 2016, Yutong released a new energy bus in Cuba, the first one in the country. Another example is Higer. The bus maker has set up its production base of electric buses in some overseas market. In December 2016, its electric bus production base was officially launched in Kazakhstan with the country’s leading research center Parasat. This year, Higer electric buses, jointly developed by the two parties, are expected to serve at 2017 World Expo held in Kazakhstan.