The storm caused by the financial crisis has deeply affected the domestic passenger car production industry. At the World Bus Alliance Asia Exhibition held in Shanghai from August 8th to 9th, 2009, not only the exhibiting companies have shrunk but also the new models displayed have been significantly reduced. At the scene of a slightly deserted exhibition, bus procurement became one of the few bright spots. The traditional passenger car manufacturers participating in the conference put the sample of the bus in a conspicuous position, in the hope that they could attract the favor of the World Expo procurement and take the opportunity to open the national market.
The passenger car industry is obviously inferior to the passenger car industry
“The bus companies are now having a hard time,†said Zhou Weiguo, director of the office of general manager of Suzhou Jinlong, one of the leading domestic passenger coaches. “Suzhou Jinlong’s sales last year were more than 16,000 vehicles. This year's sales will definitely drop. How much we drop is not the end of our hearts."
The departure from the trend of the passenger car industry is the boom in the passenger car industry. According to the latest data released by China Automobile Association on April 9, 2009, China's auto sales in January-March 2009 were 2,678,800, an increase of 3.88% year-on-year. Among them, the sales volume of passenger vehicles was 1,957,700, an increase of 7.81% year-on-year. Commercial vehicle sales were 683,100 units, a year-on-year decrease of 6.13%. As an important segment of commercial vehicles, the bus industry naturally can not escape the fate.
As for the passenger car industry, the situation is obviously inferior to the passenger car industry. Zhou Weiguo believes that one of the important ones is that passenger cars are not supported by industrial policies like passenger cars. In the “Reform and Revitalization Plan for the Automotive Industry†formally released by the government, consumer incentives such as purchase tax reductions and “cars going to the countryside†constitute a direct benefit to the passenger car industry, while commercial vehicles benefit little. If the truck industry can still get a share of the government's large-scale infrastructure investment, the demand situation in the bus industry is undoubtedly the most bleak.
The Deputy Director of Passenger Vehicle Sales of Zhejiang Youth Automotive, Wang Xubiao, also analyzed with reporters. The reasons for the poor situation in the passenger car industry are that due to the economic downturn, various business activities in the society have been reduced, and the demand for passenger cars has also greatly declined. Secondly, the high-speed railways and EMUs that have been successively opened in various places have played a significant role in the diversion of road passenger transport. For example, the Hewu Railway, which has recently been put into operation, has shortened the time from Shanghai to Wuhan to about 5 hours, plus comfort. For reasons, it is difficult for highway passenger transport companies to compete with them. Once the passenger traffic of the road passenger transport enterprises has dropped significantly, passenger car manufacturers will bear the brunt. "We expect that in the future under the influence of high-speed rail and other factors, passenger car production will have a bipolar development: First, high-end luxury business customers, and second, small passenger cars for short-distance passenger transportation," Wang Xubiao believes.
Bus procurement into a bus company safe haven
While the demand for road passenger cars is sluggish, the procurement of city buses has shown a trend of excellence. In particular, from March 2009 onwards, bus procurement in the national bus industry will gradually reach its climax. For example, at the previous Beijing Bus Show, bus companies in Tianjin, Hangzhou, Jinan and other cities collectively threw out about 2,000 bus purchases, together with the Shanghai World Expo and the Guangzhou Asian Games scheduled for next year. As a city window bus there is also a great demand for updates, but also attracted many bus companies have come to snatch this piece of cake.
Lu Yuliang, chief economist of Shanghai Shenwo Bus, which is known for his expertise in bus manufacturing, said that due to the fixed financial subsidies and the government’s “bus priority†strategy, the demand outlook for buses is undoubtedly more determined than that of road passenger cars. Although the traditional passenger car industry leading manufacturers such as Zhengzhou Yutong are making greater efforts to develop buses, Shanghai Shenwo is not worried about its own market being squeezed. Lu Xiaoliang stated that in addition to the traditional provincial capital market, domestic second- and third-tier cities and rural public transport markets such as the “Village and Village Link†project will bring a huge increase in space for bus demand. “Unlike large-volume production of passenger vehicles, the procurement of buses is mainly customized. As long as we can provide personalized services to our customers, we will not have no market,†Lu said.
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