China to Emerge as the World's Largest Market for Green Energy
Transit Buses, Projects Frost & Sullivan
SHANGHAI, Nov. 29, 2012 /PRNewswire/ -- Rapid urbanization
and the consequent rise in the demand for public transit systems
could well make China the largest
market for transit buses in the world. Being a largely state-driven
market, it is expected to benefit the most from the upcoming
hybridization and electrification programs. This provides global
original equipment manufacturers (OEMs) and suppliers with
opportunities to develop strong and sustainable partnerships with
Chinese OEMs and suppliers.
New analysis from Frost & Sullivan
(http://www.automotive.frost.com), Strategic Analysis of the
Chinese Hybrid and Electric Transit Bus Market, finds that the
total hybrid and electric transit bus sales in China are expected to reach over 12,000 units
by 2018, from 3,374 units in 2011. By 2018, the hybrid and electric
powertrain penetration in transit buses is anticipated to be more
than 14 percent.
The total transit bus sales are likely to exceed 80,000 units by
2018, cementing China's domination
of the global transit bus market. This is compelling OEMs to
develop innovative products, technologies, and supply chains that
can help reduce the high upfront and lifecycle costs of these
vehicles.
"The market for hybrid and electric transit buses is
experiencing considerable momentum due to volatile energy prices,
consumers' awareness about fuel efficiency, and recent green
incentives by the Chinese government aimed at promoting alternative
powertrain technologies," said Frost & Sullivan Industry
Analyst Bharani Lakshminarasimhan.
"Of all alternative powertrain technologies, hybrid technology
places the least pressure on existing infrastructure."
However, customers consider hybrid and electric buses
prohibitively priced and their unproven reliability and duty cycle
limitations discourage large-scale investment. Nascent battery
technology and poor charging infrastructure along transit corridors
are additional deterrents.
The price sensitivity of Chinese customers is accelerating the
implementation of strategies aimed at reducing the upfront costs of
the base vehicle, hybrid/electric drivetrain, or both. OEMs' desire
to differentiate themselves is impelling them to reduce operation
costs and improve product quality. Key components such as modules
and battery systems could become more expensive in the short term
due to OEMs' dependence on foreign suppliers.
In such a scenario, partnerships are the way forward.
Collaborations with foreign suppliers will help local OEMs to
develop cost-effective hybrid and electric components. The
motor/generator manufacturing base will expand, as foreign and
local suppliers establish their units, catering to both the local
and export markets.
"Simultaneously, for western suppliers, partnering with local
OEMs will help them gain access to many markets such as
Africa, South America, Middle East, and the Association of Southeast
Asian Nations (ASEAN)," noted Lakshminarasimhan. "Localized
production facilities and collaborations with transport authorities
remain key differentiating factors for rapid market growth."
If you are interested in more information on this research,
please send an email to Zhenhua
Chen, Corporate Communications, at zhenhua.chen@frost.com,
with your full name, company name, job title, telephone number,
company email address, company website, city, state and
country.
Strategic Analysis of the Chinese Hybrid and Electric Transit
Bus Market is part of the Automotive &
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Strategic Analysis of the Chinese
Hybrid and Electric Transit Bus Market
NADC-18
Contact:
Zhenhua Chen
Corporate Communications – China
P: +86 21 5407 5780
M: +86 1381 6974 015
E: zhenhua.chen@frost.com
http://www.frost.com
SOURCE Frost & Sullivan