Zhengzhou Yutong Bus Co., Ltd. (600066.SS), a leading bus maker in China, posted strong sales growth for the first eight months of this year, with H1 exports recovering from last year’s lows.
With 3,505 buses delivered in August, sales in the first eight months reach 23,507 units, up 52.01% year-on-year. Exports totaled 1,670 units in the first six months, and are projected to top 3,500 units for the whole year, close to the 2007 level.
In 2009, Yutong sold 28,186 units, while exports slumped 64% from the previous year to 1,010 units due to global financial crisis.
Yutong and MAN AG Buses formed a Chinese joint venture in 2002, which, however, was dissolved in January 2009 after suffering multi-year losses. When asked if Yutong was looking for a new partner which could help it increase overseas presence, Tang, Yuxiang said the emphasis should be placed on building on its own strengths to turn Yutong into a world leading brand.
During the first six months, the overall Chinese market of large and medium buses expanded 39.6% to 69,000 units, accounting for about 1/3 of global sales.