The world’s largest bus manufacturer, Zhengzhou Yutong Group delivers more than about 25,000 new energy buses every year, which is equivalent to 375 per day. With more than 120,000 ‘new energy’ buses built by the Chinese bus maker that are operating in over 380 cities to date, it enjoys a global market share of 15%. Bond Wang, Director (Overseas Marketing Department), Zhengzhou Yutong Bus Co. Ltd., shares some insights with Dhiyanesh Ravichandran on the company’s global prospects concerning electric buses and its assessment of the Indian market
In 2018, Zhengzhou Yutong Bus Co. built 60,868 buses, including 24,748 ‘new energy’ buses, of which 7,216 were pure electric and the rest all hybrids. For nine consecutive years, it was the largest seller of new energy buses and continues to roll out a large number of electric buses in the world. With four manufacturing bases, the company boasts a production capacity of 70,000 units per year, including conventional diesel buses, holding a healthy share of over 37% in the Chinese domestic market. Its products are running in over 30 countries across the globe, including the regions of Europe, Latin America, the Middle East, Southeast Asia, Australia and Central Asia (including Russia), among others.
The European Advantage
Of the 7,216 electric buses manufactured by Zhengzhou Yutong Bus Co. in 2018, a huge chunk of 589 buses were sold in Europe – the fastest growing e-bus region in the globe. The brand aims to conquer the European e-bus market with a strong presence in Nordic countries such as Denmark, Finland and Iceland, along with respectable numbers in the UK, France, and so on. Last year at Busworld Europe 2019, the company launched the U12 electric city bus that was exclusively designed for the European market. Its fully electric ICe12 coach won the ‘ecology’ label award at the same expo. In France, 10 of its buses are being operated in what can be called as the first intercity bus line in the continent.
“Europe is definitely an interesting market. We are not just supplying products but are also working on specific projects to build up charging infrastructure for EVs here,” said Bond Wang, Director (Overseas Marketing Department). He added that some of the other regions driving demand for new energy buses include Latin American countries, Central Asia, the Middle East, and South Asia. Last month, the company delivered 100 units of E12 e-buses to various cities of Kazakhstan. Domestic demand in the Chinese cities is driving the biggest volumes, with Guandong Province inducting 100 zero emission buses in April 2020.
New Markets and Technologies
Wang predicts that in the next five years Europe and Latin American markets are expected to create a big demand for new energy buses. “From the company’s point of view, this is a lifetime opportunity. With electric buses trending across the globe, we have the first-mover advantage with immense experience in the development of electric powertrain technologies and manufacturing. Thus, we are not offering just a product but perfect solutions best suited for our customers’ applications,” he opined. It is not just about battery-electric buses.
Zhengzhou Yutong Bus Co.’s product portfolio is so vast as to include conventional diesel and dual-power hybrids along with buses of all sizes and application segments. For instance, a majority of buses sold by the company in Europe are large coaches for tourist and inter-city applications. “Unlike other OEMs from China, our approach to global markets is slightly different. Depending on the dynamics and prospects of the market, we devise our export and partnership strategies so that we offer the best products and services to our customers,” Wang said. Asked about Zhengzhou Yutong Bus Co.’s assessment of the Indian market and future investment plans, if any, Wang said he personally has great confidence in the Indian market concerning new energy buses.
“India is a good market for us as far as what we have gleaned from our research, but we want to take some more time to watch the market and developments on electric buses. This is going to be our strategic decision for the next three years at the least,” he said. He further added that Zhengzhou Yutong Bus Co. would like to maintain good relations with local manufacturers and competitors in the Indian market, and is not interested in disrupting their businesses in an unsettling manner as of now. “India has a strong manufacturing base as far as buses are concerned. Hence, we want to grow together with the local players and push the industry together for the transition to new energy vehicles,” he added.