Can the sales of new energy buses in the second half of the year be realized?

Factory direct 0603 emerald green, 0603 green (0.6 thickness) - large quantity at low prices

6.3V220UF - Volume: 5X8, own factory direct sales - solid capacitor - surface mount aluminum

Full range of MOS power ICs available

L0504-Murata common mode inductor 90Ω 150mA

As the second half of 2017 approached, the passenger car market showed a mixed performance during the first half of the year. On one hand, there were positive developments with overseas brands making frequent appearances and new models launching regularly, especially high-end road buses gaining renewed interest. On the other hand, the new energy bus segment continued to struggle.

Production and Sales Decline Across All Models

According to the latest data from the China Association of Automobile Manufacturers, the production and sales of passenger cars in the first half of 2017 fell by 15.34% and 13.98% respectively compared to the same period last year. This marked a significant drop in both production and sales. Large passenger cars saw a decline of 18.26% and 17.38%, while medium-sized buses experienced an even sharper drop of 37.54% and 36.36%. Light buses also saw a decline of 9.71% and 8.32% year-on-year.

Despite the overall downturn, June marked a turning point as the market began to show signs of recovery. For the first time in months, sales in June achieved a 1.87% growth compared to the same period last year, signaling a potential shift in momentum.

Industry insiders attributed the slowdown to factors such as slower domestic economic growth and increased competition from public transport systems. Over the past five years, only 2015 saw double-digit growth at 16%, largely driven by the expansion of new energy buses.

However, the new energy bus sector faced a sharp decline due to policy changes and subsidy reductions. From January to May 2017, sales of new energy buses over 5 meters dropped by 72.89% compared to the same period in 2016, confirming earlier predictions that the growth rate would slow down in 2017.

A Glimmer of Hope in a Dull Market

Although the first half of the year was challenging, the market still delivered some surprises. New models, industry mergers, and major orders stood out as key highlights. High-end road buses like Yutong C12, Jinlong Longwei II, and Ankai A9 made their debut, while fuel cell buses from companies like Futian and Zhongtong also gained attention.

Mergers and acquisitions were also on the rise, with Dongxu Group acquiring Shenlong Bus and investing heavily in new energy vehicle production. In terms of orders, BYD delivered 1,100 electric buses to Shaanxi, and Futian secured a large order for 1,320 pure electric buses in Beijing. Export activity also picked up, with Myanmar becoming a major market for Chinese bus exports.

Signs of Recovery in the Second Half

Industry experts believe that several factors contributed to the first-half decline, including overconsumption, market saturation, subsidy cuts, and higher operational standards. However, with the launch of bidding plans in June, the market started to show signs of recovery.

Ren Shifa, an industry insider, believes that improved policies and local subsidies will help the market rebound in the second half of the year. Xu Yanhua, deputy secretary-general of the China Association of Automobile Manufacturers, noted that while the new energy bus sector faced challenges at the start of the year, clearer policies are expected to drive steady growth later this year.

Looking ahead, despite the current hurdles, the long-term trend toward electrification remains strong. Many industry analysts expect a surge in new energy bus sales in the second half of the year, driven by accumulated demand and favorable policy support.

This is a comprehensive overview of the new energy passenger car market in the second half of 2017. For more updates and detailed insights, stay tuned for more content from the electronic engineering team.