Yutong Speeds up Its Overseas Expansion In Response to China’s One Belt One Road Initiative
2017-05-09
“China’s One Belt One Road Initiative has brought many opportunities and challenges for our company”, says Tang Yuxiang, president of Yutong “On the back of a number of favorable policies and the recovering global economy, we have been maintaining a fast growing momentum in the global market in recent years”, Tang adds
In April this year, Yutong successfully secured a deal of 500 units city buses with Yangon Public Transport Company in Myanmar, marking a huge step forward in its overseas expansion. According to the bus maker, the buses will be delivered to their customer in the coming June.
In 2016, Yutong sold 70,988 units large- and medium-sized buses, accounting for 15% of the world’s total sales volume. For the sixth consecutive years, the bus maker ranked the first place in the global market. In the meantime, its export volume stood at 7,121 units, accounting for 37% of the total bus exports in China. In addition, the value of its buses exported abroad made up 35.2% of the total value of all Chinese buses sold in the overseas markets.
“China’s One Belt One Road Initiative has brought many opportunities and challenges for our company”, says Tang Yuxiang, president of Yutong. “On the back of a number of favorable policies and the recovering global economy, we have been maintaining a fast growing momentum in the global market in recent years”, Tang adds.
When talking about Yutong’s miraculously fast rise in the international market, Cuba is inevitably the first country that jumps to people’s mind. As a country which was practically isolated from the outside world in late 1980s and 1990s, Cuba only had 1,000-plus units buses which were remodeled from heavy trucks from Soviet Union. In late 2004, Cuban government made an important decision to upgrade the country’s public transport system. After a thorough investigation and research of buses manufacturers in Brazil, South Korea, China and Europe, the country had its eye on Yutong.
To win the heart of its customers in Cuba, Yutong did a lot of preparation work, such as getting to know the special operation conditions and rolling out tailor-made products. In April and September, 2005, Yutong exported 400 units and 630 units buses to Cuba. In the same year, 1,000 units Yutong buses made their way to Iran. In that year, its export value broke the 100 million USD threshold. Soon, Yutong CKD factories opened in Cuba and Iran, creating a new business mode for Chinese enterprises to expand in the overseas market.
With the rising number of orders from abroad, Yutong had never neglected the construction of its marketing and after-sales networks in the foreign countries. Take Cuba for example, it has several technicians and engineers stationed in Cuba. Moreover, it has made an investment of 800,000 USD and built an inventory, two large repair & maintenance centers and 14 service stations. Despite the severe impacts of global financial crisis in 2008, Cuban customers could get spare parts they urgently need and make the payments in due time.
Currently, the number of Yutong buses in Cuba has reached 4,497 units, accounting for over 90% of all buses in the country.
By adopting a unique marketing strategy in each and every country, Yutong continued its successful stories along the 40-plus countries along the Belt and Road region.
In Kazakhstan, Yutong buses have reached over 1,200 units. In its capital city Alma-Ata, the number of Yutong natural gas powered city buses has totaled 700 units. In 2016, 200 units city buses arrived in Lahore for operation in Pakistan. In Iran, nearly 600 units Yutong buses are now in smooth operation.
In Europe, Yutong’s export volume merely stood at 114 units in 2011. However, the figure jumped to 995 units in 2016. In 2015 alone, over 100 units Yutong buses were put into operation in the UK and France. In addition, Yutong was invited to attend the 23rd FNTV held in France and was put into service for the UN Climate Conference.
Apart from providing quality buses, Yutong is also ready to offer a whole package of other services, such as vehicle management, spare parts distribution and after sales services. “No matter in appearance or quality, Yutong can meet our standards. Moreover, its vehicles are very competitive in price”, says Richard, president of the UK-based Pelican. The company started cooperation with Yutong in October, 2012. In April, 2014, the company sold the first Yutong bus in the UK. Eighteen months later, Yutong made its way to the top bus brand club in the country with an annual sales volume over 100 units. In France, Yutong also maintains a fast growing momentum. In 2013, the company only sold 15 units in the country. However, in just two years, its annual sales volume jumped to over 250 units, accounting for 12.5% of the whole market.
