Bus manufacturers raise sales forecasts

CHINA'S major bus makers raised export forecasts for this year despite a series of patent infringement disputes that have damaged their brands in the global market.

Xiamen King Long United Automotive Industry Co Ltd expects its bus exports to double to 5,000 units this year from 2006, after seeing a 200 percent jump in 2005, according to Zhang Wanyi, general manager of King Long's overseas business department.

The nation's second-largest bus manufacturer said expanding overseas will help its total vehicle sales top 30,000 this year, compared with 24,000 units in 2006.

"The overseas markets have higher growth potential for King Long as China's price-competitive models are in demand, especially in Russia and countries in the Middle East," Zhang told Shanghai Daily yesterday during the ongoing 2007 Busworld Asia Exhibition.

China's major bus makers including Yutong Group and Zhongtong Bus Holding Co Ltd are aggressively pushing sales overseas. The firms tout cost advantages - 30 to 50 percent lower than global rivals such as Volvo AB and DaimerChrysler AG's Mercedes-Benz models - to potential customers.

Overseas expansion also helps Chinese bus makers offset intensifying domestic competition as about 100 manufacturers vie for a slice of the action.

Nonetheless, China's smaller bus makers have drawn criticism from overseas manufacturers over patent infringements.

Germany's Neoplan AG sued Jiangsu Province-based Zhongda Industrial Group Co Ltd last year for copying its design.

"Such disputes do not shake our confidence in search of sales overseas," said Zhao Yan, a public relations official from Yutong, the nation's biggest bus maker.

"Chinese companies are stepping up measures to increase their innovation and research and development capability. Time is needed to establish the nation's own brand in the fast expanding bus market."

China's bus makers sold a combined 191,000 units last year, a seven percent increase from 2005.