THE BUS INDUSTRY : Why China is conquering in the Bus manufacturing Industry
By 1949, China under the great leader Chairman Mao embarked on an ambitious strategy to industrialize China. Decades later, Mao’s dream seems to have taken center stage in catapulting China to the top 5 of the world’s most industrialized nations.
In marking its footprint in the industrial age, the bus industry in Africa has not been spared of its arm twisting, draconian foreplay and heavy-handed business dealings from China.
Up until the early 90s, Uganda had a bus-body building center around Namanve which seized to exist due to among many other factors the lack of raw materials, inadequate market and unreliable government subsidies.
A few years ago, the African bus industry was dominated by makes like Isuzu, Scania and Tata. In fact, at one point, sales for Isuzu make were in billions of dollars.
Fast forward to 2020 and the Chinese-make of buses has dominated all spheres of public transport across the sub Saharan Africa. Every 3 in 5 buses on Sub Saharan Africa roads will be a Chinese make in the basis of Yutong, Zhutong and until recently the Ashok Leyland company from India(owned by Chinese too).
Considering its hugely industrialized economy with a lot of technology going on, it is only fair to assert that China is an achieved state, and its rapidly rising economy up way since the 1980’s has seen it to this achievement in this day and age.
For example, Yutong, a Chinese bus manufacturer officially entered the African market in 2004. 15 years later, its total sales volume in the African market has exceeded 15,000 units and the total export volume to Africa counted for 45% of China’s total bus exports to this area. Yutong also claims that it has set up a comprehensive sales and service network in nearly 50 African countries including South Africa, Ethiopia, Nigeria, Tanzania, etc. and has had KD factories in Nigeria, Ethiopia and other countries.
Other brands from China have also shown considerable growth in the African market with very applaudable trends.
To understand this upward expansion of the china bus brands in Africa, we take you through some of their most lethal selling points.
According to one bus owner we spoke to who owns 25 buses all from the Yutong brand, some things were noteworthy. Beyond the exquisite interior and exterior, smooth hauling engine and cutting-edge technology, China bus manufacturers also understand that; Comprehensive, efficient and trusted service is an important guarantee for bus operation. Through various service measures, these bus manufacturers from China provide overseas customers with trusted service guarantee.
China understands that Africa is a very important strategic development partner. Could this also be the reason fueling the rapid implementation of the belt and road initiative? Or could it also be the reason why China’s bus companies are shifting from just selling products to providing integrated solutions. Our analysis has found that companies like Yutong are now helping bus owners optimize routes planning and improve management level, operational scheduling and other capabilities. Could this explain why their sales graph keeps rising yearly unlike their counterparts like Scania? Today, China conquers!
China’s shift in energy conservation for mobility.
It impossible to speak of mobility and not mention China’s impressive shift to electric bus.
Climate change is just a concern for China as it is for the rest of the world. To this end, China has battled its pollution problem with an impressive conversion of its motors from battery-dependent to electric. Fiery efforts and huge funds have been directed towards improving China’s air quality among which is the attempt to electrify public transport.
Today, about 17 percent of the world’s buses are electric — 425,000 in total. But 99 percent of them are in China, where a national mandate promotes all sorts of electric vehicles.
It has also been speculated that China manufactured buses consume less fuel, have less carbon emissions and are long lasting hence reducing on disposal of waste to the environment. Hopefully China will manage to add more dependable solutions even in the transport sector, like giving their buses an electric status, rather than the now old fashioned lithium-running bus batteries.
Since China owns the leading clean energy and transportation technology companies that have strategically positioned themselves in the electric vehicle industry over the years, then its noteworthy to understand why China is so far the leading seller of buses on the African continent. BYD and CATL have in the recent years attracted the needed growth-capital through battery supply, and in turn secured the opportunity to have just enough funds to produce electric buses.
At The Bus Man, we can only marvel in appreciation at China’s impressive business acumen.
