M&A Analysis and Research on Bus Industry of China

Abstract:
•  The status quo and background for M&A in China 's bus industry

From yearly performance in this industry, total annual sale, market shares among different sectors looked up with speed faster than the past two years. Big and medium model manufacturers feel comfortable in response to national policy, domestic sales and export and got on the right direction. Both decision-maker and marketing personnel are more familiar to this market. In addition, the corporate goal has shifting from fervently grabbing the market to pursuing sustainable development with clear-mindedness. Just as development in national economy in 2008, China 's bus industry is striving forward.

2 The Motives behind M&A in China 's bus industry

With years of adjustment in industrial structure, bus industry has been on a plateau so far. Under this backdrop, strong competitiveness, corporate inner management, caliber cultivation, innovation and marketing techniques are all the about for a bus manufacturer to stand firmly on the market. Upon the industrial list, the top ones have been featured an outpouring concern into corporate management as to boost performance for sale. It's worth noting that low threshold into the market makes the competition so fierce that companies have been single-minded in pursuing sales rather than product profit which is detrimental to the industry. The lesson can be drawn from home appliance marketing in extremely low price so as to keep the bus industry on the right tract. The current market can be described as chaotic as the reason for M&A behind this industry as one of the main research companies identified:

A. The development room is large. It is attractive to multi-nationals and big companies to set tremendous consideration on industrial trend, mobilization of personnel and budget in R&D and harnessing the potential from bus market. These new comers will engage in M&A over rivalries based on advantage in capital and management.

B. Though the room has been expanding, the competition is so hard. The image-building campaign is facing both manufacturers and dealers. With the brand value being highlighted and withering market for small companies, big ones will take over those firms in dire strait.

3. M&A trend in China 's bus industry

Upon the corporate development in 2006, the capacity among big companies is stupendous. Take Xiamen King Long Motor Group Co., Ltd for instance, it has been experienced a good year. Based on the data of ours its production in 2006 was 10,037 with sales on 9,946 at RMB 377,000,000 which was increased 26.6%, 29.7% and 29.8% respectively. The growth can be seen in both quantity and sales in single unit. Suzhou King Long Motor Group Co., Ltd has achieved 13,345 in sales growing 31.09% with RMB 3,502,000,000 in return up 32.83% over last year. For Yutong Group, its sales broke the record with RMB 10,139,800,000 in one year while in bus production the growth was mammoth .

A. Cooperation among big companies. On one hand, integrated resources will boost complementary strength among the same sector and scale in product marketing, design and R&D through marshaling synergies from research, talent and capital. On the other hand, cooperation will help reduce inner cost, recalibrate direction for marketing and policy and stir up competitiveness and share. With ferocious competition going on, resources integration will heat up again.

B. Joint venture. The advantage in capital, technology, brands and management are beneficial to domestic companies to make their image accepted internationally.

C. the M&A and consolidation will enter into new stage years to come while integration cross the spectrum of industries or take-over between up-stream and down-stream sectors can not be ruled out.

The gap will be enlarged between big company and medium and small manufacturers as described in Matthew Effect. Bus manufacturers should take a long view into the future as to spur over all capacity and corporate know-how along with core competitiveness if they want to forerun over adversaries.

	Chapter 1 Character and Analysis on Bus Industry
Section 1 the Definition of bus industry and its classification
Section 2 Investment character of bus industry
A. Growth rate of this industry
B. Entering barriers in this industry
C. Product mix
D. Industrial density
E. Profitability of this industry
Section 3 Industrial structure among bus manufacturers 
A. Ownership structure of bus manufacturers
B. Scale of bus manufacturers
C. Allocation of bus manufacturers


	Chapter 2 The Market Development Trend in World Bus Industry
Section 1 the Status quo and character of the world bus industry 
A. the development character of the world bus industry
B. the Demand and supply in the world bus industry
C. the market prospect of the world bus industry 
Section 2 the development among world famous brands 
A. List of top manufacturers
     B. the Savvies and goals


	Chapter 3 Related Industries to Bus Manufacturing  
Section 1 the Status quo of market development in this sector
Section 2 the Analysis on manufacturers in auto parts
A. the development mode of automotive parts industry in China
B. the Status quo of automotive parts industry in China
Section 3 the Dynamics in steel industry 
A. the Performance in steel industry 
B. the outlook analysis on steel industry 
C. Macro-economic environment and challenges in steel industry 
D. the Prospect of steel market trend 
Section 4 the Dynamics in petrochemical industry 
A. Retrospect 
    B. Prospect


	Chapter 4 The Impact of Economic Environment on Bus Industry
Section 1 Economic environment and prospect 
A. Macro-control and its impact on this industry
B. the Impact of the cycle of interest rate increases upon this industry 
C. National economic development  
Section 2 the Impact of demography on auto spending  
A. Major demographic figure 
B. Income change 
Section 3 Psychological change among customers
A. Homogenized Products 
B. Array of option 
C. Change in corporate system


	Chapter 5 Development Environment in Bus Industry 
Section 1 New policy and its impact on bus industry 
Section 2 the important rules and regulations upon bus market 
A. Anatomy of fueling tax, consuming tax and reform in public transportation 
B. the Code of Urban Bus Technology and Requirement in Grade
C. the Management & Regulation on Retreat of Unqualified Bus Product
D. Rising the bar through Auto Loan Management 
E. Dismantling the limits for length 
F. New rule on franchising business in urban public transportation 


	Chapter 6 Market Prospect of China¨s Bus Industry 
Section 1 the General performance of China¨s bus industry in 2007
A. Over all sales
B. Corporate marketing in general
C. Demand and supply within market
Section 2 the Status quo of bus market
A. the Character market development 
B. Ratio of output and marketing 
C. Layout of bus industry 
D. Inventory 
Section 3 Investment in bus industry 
A. Joint venture and cooperation in bus industry over the years
B. M&A and consolidation of bus industry
C. Investment forecast in bus industry 
Section 4 Market demand for bus 
     A. Market demand and profitability
     B. Prospect and development trend 


	Chapter 7 Market Analysis and Forecast in Different Models Crossing All Spectrum of
 Bus Market 
Section 1 Big model 
Section 2 Medium model
Section 3 Light model 
Section 4 Mini model 

	Chapter 8 The Market Analysis and Forecast in Different Grade
	Section 1 the Development character and trend on high-grade bus
A. the Status quo of domestic high-grade bus 
B. Market performance of high-grade bus in different price 
C. the Prospect of high-grade bus
	Section 1 Bus market in medium and low-grade bus

	Chapter 9 Market Analysis and Forecast in Different Type of Bus
	Section 1 Market analysis and prospect in public transportation 
A. Urban development and its relation to public transportation
B. the Status quo of public transportation  
C. Foreign public transportation and lesson to be drawn 
	Section 2 Market cycle and development forecast in commercial bus market 
A. Cyclical development in commercial bus 
B. Development of commercial bus market  
    C. Outlook of commercial bus market

	Chapter 10 Regional Market of Bus Industry 
	Section 1 Bus Industry in Beijing
	Section 2 Bus Industry in Shanghai
	Section 3 Bus Industry in Jilin Province
	Section 4 Bus Industry in Guangdong Province

	Chapter 11 Export and Import of China¨s Bus Products 
	Section 1 Bus import and forecast
	Section 2 Bus export and forecast
A. the Change in Export over the years
B. the analysis over current export
	Section 3 International competitiveness of China¨s bus industry 
A. Competitiveness in R&D
B. Price competitiveness
C. Other advantages
D. the Advantage of China¨s bus to compete with foreign counterparts

	Chapter 12 Competition of Bus Industry 
	Section 1 Competition of bus industry 
A. Current competition within the market
B. Bargaining capability among suppliers
C. Bargaining capability among customers
D. Threats from alternatives
E. Threats from newcomers 
F. Other factors
	Section 2 Competition trend of bus industry 
A. Linear competition to multi-level competition 
B. Competition trend of market price 
C. Public relations marketing 
     D. Core competitiveness relying on value

	Chapter 13 Market Competition in Categories
	Section 1 Market competition in big and medium model
A. Current market
B. Trend for big model 
C. Bus for public transportation as spotlight in bus market 
D. Service as deep-held value for bus industry in the near future
E. Bus export being the trend
	Section 2 Rebound in competition in light bus 
A. the Ferocious competition in Serialization, exceptional virtues and Homogeneity
B. Dominant competition and heated tug war with MPV
C. Light bus tends to be small and modified one for the medium size
D. Western products swarm in domestic market
E. Double engine competition
F. Cutting-edge ideas
	Section 3 Competition in Mini bus market
A. Competition of mini bus market 
S. New direction of mini bus market

	Chapter 14 Marketing Savvies in Bus Industry
	Section 1 Marketing model 
	Section 2 Marketing tactic
A. Ads and their character among brands
B. Industrial competition with exceptional virtues 
C. Competition in post-sale service for bus manufacturers

	Chapter 15 Listed Companies 
	Section 1 Dongfeng Motor Corporation (stock code 600006)
A.  Corporate profile
B.  Auto sale 
C.  Corporate performance
D.  Corporate news
E.  Corporate outlook 
	Section 2  Jiangling Motors Co., Ltd (stock code 000550)
A.  Corporate profile
B.  Auto sale 
C. Corporate performance and dynamics
	Section 3  Yangzhou Yaxing Motor Coach Co., Ltd ( stock code 600213)
A.  Corporate profile
B. Corporate performance
C. Corporate performance and dynamics in business
	Section 4  Zhengzhou Yutong Group Co., Ltd., ( stock code 600066)
A. Corporate profile
B. Corporate performance
C. Auto sales
D. Marketing savvies
E. Business forecast
	Section 5 Beiqi Foton Motor Co., Ltd ( stock code 600166)
A. Corporate profile 
B. Corporate performance
C. Auto sales
D. Marketing savvies
E. Business forecast
	Section 6 Jiang Xi Changhe Automobile Co., Ltd ( stock code 600372)
A. Corporate profile
B. Production
C. Dynamics in Business
	Section 7 Anhui Jianghuai Automobile Co., Ltd (stock code  600418
A. Corporate profile
B. Corporate performance
C. Auto sales 
D. Business forecast 
	Section 8 Shenyang Jinbei Automotive Industry Co., Ltd. (stock code  600609
A. Corporate profile
B. Production 
C. Dynamics in business
	Section 9 Xiamen King Long Motor Group Co., Ltd (stock code  600609
A. Corporate profile
B. Corporate performance
C. Dynamics in business
	Section 10 Changan Auto Group (stock code  000625
A. Corporate profile 
B. Corporate performance
C. Auto sales
D. Marketing savvies 
E. Business forecast

	Chapter 16 Other Domestic Famous Brands 
	Section 1 China Faw Group Corporation 
A. Corporate profile
B. Sales  
C. Marketing success
	Section 2 Baoding Great Wall Automobile Holding Company
A. Corporate profile
B. Corporate performance
C. Development strategy and marketing philosophy 
	Section 3 Dandong Huanghai Automobile Co., Ltd 
A. Corporate profile 
B. Output and sales
C. Corporate marketing techniques
	Section 4 Jiangsu Yaxing Motor Coach Co.Ltd.
A. Corporate profile
B. Output and sales
C. Corporate strategy and business dynamics 
	Section 5 Changzhou Changjiang Bus Group Co., Ltd.
A. Corporate profile
B. Output and sales
C. Corporate strategy and business dynamics

	Chapter 17 Major Joint Venture in Bus Industry
	Section 1 SAIC-GM-Wuling Automotive Stock Ltd.)
A. Corporate profile 
B. Exceptional virtues 
	Section 2 Guangzhou Wushiling Automobile Co., Ltd.
A. Corporate profile
    B. Exceptional virtues

	Chapter 18 Bus Market Trend 
	Section 1 Trend in products mix and spotlight for investment
A. Diversified demands
B. Urban logistics offering one goal for light bus industry 
C. Diesel engines for big and medium bus proves the mainstream 
D. Diesel-burning light bus looks up 
	Section 2 Winning model forecast in major cities
	Section 3 the development of bus industry over 5 to 10 years 

	Chapter 19 SWOT Analysis of Bus Market 
	Section 1 Market for bus industry remains large
A. More room for public transportation 
B. Urban public transportation as striving force for the bus market as whole 
C. Coach facing more business opportunity
D. Bus market in rural area is large 
	Section 2 the Difficulty for bus market turnover  
A. Supply over demand looming large
B Price war grow fierce 
C. Skyrocketing price in raw material eating into profitability of bus industry 

	Chapter 20 Recommendation for China¨s Bus Industry 
	Section 1 Push forward exceptional virtues
	Section 2 Proprietary technology  
	Section 3 Famous brand built-up campaign 

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