The recent performance forecasts from Yutong Bus for the year 2024 signal a remarkable turnaround for the companyIt has been projected that Yutong will achieve a net profit attributable to shareholders of between 3.82 billion to 4.27 billion yuan, marking a staggering increase of 110% to 135% compared to the previous yearThis optimistic outlook is fueled significantly by an impressive boost in export sales, which has emerged as a vital component propelling the company's overall performance upwardIn a scenario where the domestic commercial vehicle market is experiencing sluggish growth, exports have become a promising avenue for many commercial vehicle manufacturers striving for sustainable growth.

Export Success as a Growth Driver

According to the information disclosed by Yutong, the total number of buses sold in 2024 reached 46,918 unitsThis figure encapsulates a year-on-year growth of 28.48%. Among these, exports accounted for 14,000 units—indicating a substantial year-on-year increase of 37.73%. The domestic sales figures stood at 32,918 units, reflecting a growth of 24.91%. These sales expansions unequivocally underscore a strong recovery trajectory and contribute significantly to the increased profitability for Yutong.

Yutong representatives emphasized that the growing competitiveness of Chinese bus products on the international stage has enabled a sustained rise in export salesThe company's performance in overseas markets in 2024 has reached an all-time highNotably, Yutong secured over 2,000 orders in Latin America, saw the introduction of 600 buses into Mongolia for the first time, executed the bulk delivery of 100 dual-source trolleybuses to Kazakhstan, and delivered 274 buses to MexicoAdditionally, 46 units of Yutong’s pure electric airport shuttle buses found their way to Spain, with successful sales also reported in markets such as Greece, Denmark, Norway, and the Philippines.

In the domestic landscape, the burgeoning tourism industry is driving sustained demand for passenger transport, creating a flourishing environment for the company’s products

Advertisements

The rollout of policies that promote the replacement of old buses with new electric models has catalyzed a rapid recovery in the public transport sector, enhancing domestic sales performance across the board.

Similarly, China National Heavy Duty Truck Group (CNHTC) expressed its optimism during industry research, anticipating growth in production and sales in 2024—outperforming industry averagesThe company's export strategy remains robust, maintaining a leading market share within the heavy truck sector.

The trends in China's commercial vehicle export landscape have shown tremendous growth in 2024. Data from the China Association of Automobile Manufacturers (CAAM) reveals that the production and sales volumes of commercial vehicles stood at 3.805 million and 3.873 million units, respectively, reflecting a decline of 5.8% and 3.9% year on yearHowever, exports climbed to 904,000 units, indicating a significant year-on-year increase of 17.5%.

Evolution of Export Strategies

Industry insiders note a shift in the Chinese commercial vehicle sector from a focus on increasing market share through penetration strategies to cultivating existing market conditionsThis transition is becoming particularly pronounced as domestic demand wanes, forcing many firms to establish exports as their secondary growth avenueOne commercial vehicle executive, speaking anonymously, remarked on this transformation by stating that export markets offer a new trajectory for growth amidst domestic challenges.

Fuelled by advancements in technology and innovative practices, the scope of China’s commercial vehicle exports has expanded rapidly in recent yearsMarket analysts project that by 2030, China’s commercial vehicle export volumes may reach 1.5 million units, constituting about 27% of total sales in the sector.

In an effort to adapt to these evolving market conditions, numerous Chinese commercial vehicle manufacturers are fortifying their presence in international markets

Advertisements

This includes the establishment of joint ventures, overseas manufacturing plants, and strategic partnerships—shifting their operational focus from mere exportation to local production and integrated operational models.

A spokesperson from Yutong articulated the company’s commitment to leveraging its technological edge, revealing that it has engaged in local assembly operations in over a dozen countries such as Kazakhstan, Pakistan, Ethiopia, and MalaysiaThis shift reflects a significant transformation from a product-centered export approach to a strategy emphasizing technology transfer and brand licensing that aligns with local market needs.

Foton Motor has traced its international strategy since 2004, evolving through four distinct phasesInitially focused on vehicle exportation through agency models, Foton transitioned to a trade-plus-medium operational phase, building a comprehensive service and marketing framework from 2010 to 2017. The subsequent years from 2018 to 2021 saw Foton embrace local operations paired with international cooperationIn a bold move in 2022, Foton embarked on a pathway of full-fledged globalization, forming a complete international operation framework for its line of commercial vehicles.

Soaring Adoption of New Energy Vehicles

The National Passenger Car Market Information Association’s statistics for 2024 indicate robust growth in China’s new energy commercial vehicle sector, with domestic sales soaring to 532,000 units—an increase of 28.9%—accounting for 17.9% of the overall commercial vehicle marketNotably, Yutong demonstrated its prowess by achieving sales of 13,795 units in the segment of over six-meter new energy buses, a remarkable year-on-year surge of 93.26%.

Sales data from First Commercial Vehicle Network further showcases this electric revolution, revealing that 82,000 new energy heavy trucks were sold in 2024, reflecting an astonishing growth of 140%. This inflection point in the market has been largely characterized by the emergence of new energy vehicles as a pivotal growth segment.

In discussions with institutional representatives, CNHTC acknowledged a significant leap forward in its new energy operations, reaffirming its trajectory of strong growth

Advertisements

Advertisements

Advertisements