Business
Electric Bus Wars: Can China Maintain Global Dominance Amid Tariff Challenges and Maturing Domestic Market?
Will a full tariff setback deter China's ambition to monopolize the global electric bus market?
As the Chinese market continues to grow, overseas sales are crucial for the future success of companies like Yutong and Foton, who are competing with European manufacturers of electric buses.
In the initial installment of a trilogy focusing on electric vehicles (EVs), Eric Ng examines the stability of China's leading role in the commercial EV market, specifically electric buses and coaches, in the face of increasing geopolitical strain and trade protectionism.
Kent Chang, the Asia-Pacific CEO of Yutong Bus, which is China's and the globe's biggest bus and coach manufacturer, has been actively pursuing new clients. Following his attendance at trade exhibitions in Chile in August and Australia in September, his forthcoming visits are to the Philippines and Thailand.
He's not the only one. At last month's biannual National Coach and Bus exhibition in Brisbane, Chinese counterparts such as King Long United Automotive Industry and Foton Motor Group were also present. BYD, the biggest manufacturer of electric vehicles globally, showcased its lineup too. Collectively, their significant presence symbolizes China's dominance in the transformation towards electric public transportation.
Over the course of ten years, China has managed to switch 80% of its public buses from traditional fuel sources to electric and hydrogen fuel cell systems. The country's leading manufacturers are now ambitiously looking to duplicate this achievement on a global scale, even in some challenging markets. However, they are set to face hurdles due to the increasing trade restrictions and protectionist policies in North America and Europe.
As the Chinese local market becomes more established, international markets are crucial for potential profit growth. This is highlighted by the massive initiatives from multiple governments to transition away from diesel and gas-run buses. Competitors such as Sweden's Volvo Group and Scania are also keen on securing these contracts.
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