How to Develop Chinese Bus Enterprises during Structural Adjustment Period
“In the past two years, the structural changes in the passenger car market in China have taken place, and it will be impossible to continue maintaining high-speed growth for many years in the future,†said Cao Jianwei, assistant president of Yutong Bus at the Global Automobile Forum held in Wuhan recently.
In this market environment, how can bus companies seek long-term development? As a representative of the leading passenger car companies in China, Cao Jianwei elaborated his views and shared the experience of Yutong Bus.
Stabilize the domestic market: Product innovation to develop new market segments
Cao Jianwei stated that factors such as safety and environmental protection currently have a significant impact on the passenger car industry. “In particular, the increase in urban hazy weather has brought great opportunities to urban public transport and new energy passenger vehicles. The state has increased support for new energy vehicles. Strength, its broad prospects are predictable."
According to him, in 2013 Yutong sold 3,000 new energy passenger vehicles, which increased by 100% compared to the same period of last year. "In the first 8 months of this year, Yutong sold nearly 3,000 new energy passenger cars. With the gradual clearness of the subsidy policy, new energy buses still have very large room for growth this year."
Compared with the new energy bus market, high-speed rail and private cars have a greater negative impact on the passenger transport market. "Because these two factors are irreversible for long-distance passenger transportation." In response to this market change, Yutong Bus adopted product innovations and other measures. “Because of the declining road passenger transport market, customers have put forward higher requirements for the operational efficiency and operational capability of vehicles. To this end, Yutong Bus has successively introduced 10 m, 11 m, and 12 m layers of semi-trailer products to increase the number of passengers. Effectively help customers improve ROI, and quickly recover the investment." Cao Jianwei said that in the layer of semi-highway passenger car market, Yutong's market share has now reached 50%, in particular, 10 meters of semi-trailer can reach 70%.
In addition to stabilizing the market through product innovation, Yutong Bus actively explores emerging markets to promote overall sales growth. "Taking the school bus market as an example, there was no school bus in China at first, but due to the encouragement and attention of the national government departments in the past few years, 'Hangshengdi' created a new school bus market. Yutong's school bus standards, products, marketing, A great deal of work has been done in many aspects such as operations and services, and excellent results have been achieved. At present, school bus sales have accounted for 20% of Yutong's total sales.â€
Following the school bus, Cao Jianwei believes that the next opportunity for development in the passenger car market will be RVs. He predicts that in 3 to 5 years, China will cultivate an emerging RV market. “Yutong Bus has established a special car company to transform the RVs by grasping the consumer expectations of the society and the forward-looking needs of customers. From the development trend of the developed countries, we can optimistically foresee that the prospects of the Chinese RV market are very promising. The vastness is a new incremental market segment that the bus industry needs to develop."
Stepping up transformation and international brands competing on the same stage
At present in China, although the market share of domestic passenger car brands exceeds 90% or even higher, Cao Jianwei stated that with the economic development, Chinese bus companies may be short-sleeved with domestic and foreign counterparts at the same time.
In order to enhance competitiveness, he believes that domestic passenger car companies need to improve their technological capabilities and solve their own competitiveness problems; improve product capabilities and management capabilities, and insist on “beyond the national borders†and vigorously through product innovation and business model innovation. Expand the international market.
“In China, because customers are more powerful, they can repair their own vehicles, and spare parts are also easy to buy. While they are completely different in foreign countries, bus companies must provide good and timely products and services, but also to ensure that customers make money, can continue "Consumption." Cao Jianwei analyzed that Chinese bus companies must also consider the uniqueness of the local market environment when developing overseas markets.
“Yutong had obtained Venezuela’s orders for 1,500 passenger cars some time ago, including not only vehicles, but also accessories, after-sales networks, and the construction of smart bus network systems.†Cao Jianwei believes that Yutong’s experience shows that Chinese auto companies need to go overseas. From simple manufacturers to service providers, fully integrate resources, not only to provide products, but also to establish parts and service networks, while providing some guidance and support for financing. “For example, Venezuela will be responsible for the design and maintenance of BRT systems to Yutong. Chinese bus companies must adopt comprehensive services to turn unfavorable factors and challenges into favorable factors and opportunities.â€
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