As the bus market declined in the first half, most bus makers saw decreasing sales, operating profits and high asset-liability ratios. Yutong and King Long, on the other hand, saw increased revenues and gross profit margins and brought a glim of hope to the sector.
Macroeconomic downturn, slowed economic growth, replacement of road transportation by high-speed rail, sales drop of school buses, and purchase in advance due to State-IV emissions standards all contributed to a gloomy bus market in the first half of 2014.
New energy bus sales may witness a rebound in the second half thanks to the release of the catalogue of purchase-tax free NEV models. The bus industry may still see positive growth for the year.