As the domestic market is becoming increasingly saturated, Chinese bus companies are actively exploring overseas markets.

The global passenger car market has sold less than 400,000 vehicles a year. Of these, Chinese bus companies already account for more than 40% of the market. Hu Fengchao, overseas marketing director of Yutong Bus, pointed out in an exclusive interview with reporters that the development of passenger cars is generally related to the degree of development of the national economy. The more they are in developing countries, the greater the market demand is. “The biggest opportunity now is Latin America. There are two places in Africa, but the development in Africa is still not enough. Latin America is relatively better."

According to Hu Fengju, Chinese bus companies have entered the entire Central and South America except Brazil, Argentina and Mexico, and other markets have entered, with an average market share of 30%-40%.

Competing for South America On July 21, under the joint witness of Chinese President Xi Jinping and Venezuelan President Nicolas Maduro, Yutong Bus Chairman Tang Yuxiang and Venezuela’s Minister of Communications Haman Trudi signed a memorandum of cooperation on 1,500 buses. . Behind the big orders is Yutong Bus, which has established a joint venture with the Ministry of Industry of Venezuela and the Ministry of Land Transportation, with an initial designed capacity of 3,600 vehicles.

As the most promising South American market, almost all the global bus companies have gathered, especially the Brazilian car company Marco Polo using Mercedes-Benz chassis, but also has a home field advantage, controlling more than 60% of the market.

Hu Fengju indicated that with the development of China's economy, especially with the popularity of cars and high-speed rails, it has been difficult for the domestic passenger car market to experience rapid development in the past. However, many developing countries abroad, especially the economic development rate, are relatively high. The South American countries gave the opportunity for the Chinese bus companies to continue their development. "At least you can also grab someone else. In Venezuela, we are the Marco Polo and Mercedes (market)."

In the South American market, Marco Polo’s market share is above 60%, except for the 30%-40% market share snatched by Chinese car companies, leaving the rest with Mercedes-Benz, Volvo, MAN and other old passenger car companies.

Since Yutong obtained the first order for Cuba in 2005, Chinese bus companies have already mastered the markets of Cuba and Venezuela. In addition, 70% of the bus market in Chile has also been acquired by Chinese bus companies. Uruguay, Peru, Colombia, and Ecuador have also become the main battlefields of China's bus companies. Only Brazil, Argentina, and Mexico have set high trade barriers. It is difficult for these markets to have room for Chinese car companies.

Fierce competition also makes the overseas development model of Chinese bus companies mature. From the initial "waiting for the rabbit" style to wait for customers to come to the door, and later to send a few people overseas to "hunt type" "scatter bullets", which is the only one to hit, for simple trade. Now at least in South America, deep farming has been started.

Taking this example of Yutong’s acquisition of 1,500 large vehicles in Venezuela, Yutong buses must not only provide Venezuela with vehicles and related accessories, tools and maintenance, but also involve smart bus operation management systems. This shows that the cooperation between Yutong Bus and Venezuela has extended from the product and technology level to the construction of the local intelligent public transport system.

Hu Fengju said that the market determines the factory, and the bus market in Cuba and Venezuela has been basically occupied by Chinese bus companies. “The newly-built joint venture will first satisfy Venezuela’s domestic consumer demand and then consider radiating to neighboring countries”.

At present, Venezuela’s annual passenger car demand is between 3,000 and 4,000 vehicles, of which Yutong can obtain more than normal business. However, in Cuba’s passenger car market, Yutong not only occupied the entire market, but also received Castro’s support and recognition. Yutong’s business in Venezuela was introduced by Castro.

Yutong’s business in Venezuela has also been relatively smooth. Among them, the company received orders for more than 1,000 vehicles in 2012 and 2,000 in 2013. Hu Fengju introduced: "Yutong has formed a good reputation and influence in Venezuela, and this market will be enough to support the operation of a factory."

The potential market is Europe, America and Southeast Asia <br> <br> from the initial hundreds of vehicles, thousands of vehicles, to 24,000 in 2013, to 26,000 this year to almost, China's vehicle exports have accounted for the total passenger car market sales Of 14%. Chinese bus companies have become an important force influencing the development of global passenger cars.

"At least for now, I know that Volvo and Mercedes-Benz are using Yutong as a research object. When these first-line brands do research on customer satisfaction, they will regard Yutong as a very threatening opponent." Hu Fengju gave reporters a description of Yutong last year. At the press conference of the Belgian Bus Show, “We held a press conference. Basically, many customers and competitors have gone. There aren’t enough chairs, and there are two or three people on the outside.”

Hu Fengju said that these so-called competitors are Mercedes-Benz, MAN, Volvo and other mainstream bus companies. They are now very sensitive to Yutong’s move. “We are involved in tendering for some European customers. As long as we are involved, the prices of Mercedes-Benz and MAN will drop drastically. We will never think of the price they drop.”

The pricing of Chinese bus companies in overseas markets is generally 20%-30% lower than that of first-tier brands. Although these front-line brands will significantly reduce their prices when they encounter Yutong at the current stage, Hu Feng thinks that Yutong will definitely develop to the high end in the future. "I think Europe and the United States are a potential market for Yutong."

In fact, sales of first-line brands have become less and less over the years. Mercedes-Benz has sold 30 to 40 thousand vehicles a year worldwide, Volvo buses may have 8,000 to 10,000 vehicles, and MAN has sold about 5,000 vehicles a year. Among them, 80% of orders are sold outside of Europe, of which 90% are chassis sales.

In international trade, there are two barriers that Chinese bus companies often encounter. The most commonly encountered markets in Southeast Asia, South Africa, and Russia are trade barriers. In order to protect the local industry, the local market imposes higher tariffs on the entire vehicle. In this case, the company will generally establish a KD factory locally and export it as a spare part. However, European and American markets generally set technical barriers.

Hu Fengju said that developed countries such as Europe and the United States do not want Chinese bus companies to enter, fearing that Chinese cheap passenger cars will greatly impact the local market, so they set up many technical barriers and the threshold for certification is very high. "For example, if a Chinese bus company wants to enter Europe, it will first require that your emission standards reach Euro 6, so that you have to use its (Europe) engine."

At present, in the traditional European and American markets, Yutong is doing a better job in the two markets of Israel and France. Hu Fengju told reporters that Yutong's market share in Israel can account for 30%, and the French market has also developed well this year. “The sales volume in the previous year was only a few units, a dozen units, and more than 100 units were sold this year.”

For other markets in Europe, Hu Fengju said that they are advancing. "This mainly depends on our ability to keep up with our services." At present, Yutong’s entire overseas business unit has more than 500 employees, including half of its service personnel and 40% of its business staff.