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The whole marketing environment always has a big effect on minibus sales. What’s the recent international market status? What about the effect on our KINGSTAR 17 seater minibus sales?

Under the huge fluctuations of the stock market, the market capitalization ranking of the listed companies in the new economy is constantly changing. Tencent and Alibaba were still in the first echelon and were still strong throughout most of the year. By the end of the year, however, they were faced with suppression and risks of internet platform monopoly. E-commerce platforms getting stronger and stronger, new ideas emerge endlessly. Some well-known listed companies share prices soared, and the market capitalization continually exceeds old brand internet companies. And for the automobile area, it is the same, the top three electric automobiles staged a “big market”!

17 seater minibus

1.Trading Situation of Different Industries

As the big news from China Custom on 13th April. In The First Quarter, fabric export including mask but not limited to has increased 30.6%; Export of mechanical and electrical products increased by 43%, accounting for more than 60% of the total export value, among which the export of mobile phones and automobiles increased by 38.5% and 98.9% respectively.  

In China, economic recovery is quite different in all industries. The first recovery industry is masks and other anti-epidemic materials. On the one hand, China is a major producer of epidemic prevention material and products. On the other, China’s production capacity recovered most quickly. It should be noted that the threshold for the production of epidemic prevention materials is not high. And with the gradual recovery of production capacity in various countries, the export growth rate of this part has dropped to the normal range.

However, mobile phones, automobiles (Bus, 17 seater minibus and etc) is taking over the place of anti-epidemic materials, becomes the new breaking point of China’s export. On one hand, it is because of the hot of “close economy” and “isolated economy”, all scenes are also moving online at an accelerated pace. It has led to an explosion in demands; On the other hand, mobile phones and automobiles are industries with long supply chains. Oversea production is likely to be halted due to the core components of the chip’s supply. In these areas, China is developing new advantages in the whole supply chain.  

2.Freight Cost, Raw Material and Employment Cost Increased Continuously.

Although export trading started well in the first quarter, trading enterprises are still facing some difficulties and challenges. For example, sea freight rates are hovering at a high level. And the transport capacity is insufficient, which affects the order receiving of enterprises. The rise in raw material prices leads to an increase in production costs; The situation of difficult employment in some areas is still severe.

3.The Production of Passenger Cars in China is Declining Year by Year

The first passenger car rolled off the production line in Changchun China in 1956. It was the first batch of passenger cars in New China. After that, all kinds of passenger cars appeared as required by the market. Such as 7-11 seater minibus and etc. With the rapid development of the domestic market, through the introduction, digestion, and absorption, and the promotion of laws and standards, the production of passenger cars in China has gradually improved and has completely met the demands of the domestic market. At the same time, technical progress and higher cost performance have been highly recognized by domestic and foreign markets, domestic passenger car (Bus, 17 seater minibus and etc) technology and the market gradually connected with international.

From the point of view of the changes of passenger car (Bus, 17 seater minibus and etc) production, since 2015, the passenger car production in China has shown a trend of decline year by year. In 2019, the national passenger car production is 441,900 units, 2.7% declined year-on-year. In 2020, due to the impact of COVID-19, China’s passenger car production continues to decline. By the end of 2020, China’s passenger car production has reached 434,700 units. This is compared with the same period in 2019 declined 1.7%.

From the perspective of the changes in the production-sales ratio of passenger cars (Bus, 17 seater minibus and etc),

the domestic production-sales ratio of passenger cars fluctuates around the equilibrium level in recent years. Under the background of declining sales year by year and persistently depressed market, it is obvious that the manufacturer’s big pressure of reducing production capacity of a passenger car. Also, the automobile (Bus, 17 seater minibus and etc) industry is eager to seek new market opportunities.

4.The Potential of Passenger Cars Export

Domestic passenger car (Bus, 17 seater minibus and etc) export situation shows that, from 2018 to 2019, domestic passenger car export has maintained a positive growth and reached 61,789 units in 2019, with a year-on-year growth of 11.3%, accounting for 13.9% of the total passenger car sales. Under the background of a sharp decline in the overall sales volume, the passenger car export market has maintained a vigorous development trend.

In 2020, due to the influence of global COVID-19, the export market of passenger cars (Bus, 17 seater minibus and etc) has suffered a severe decline. By the end of 2020, the export volume of passenger cars (Bus, 17 seater minibus and etc) in China has reached 4,041 units, with a cumulative decrease of 35.2%. However, from the perspective of long-term development trends, the export market has great potential. Moreover, tapping overseas markets will become one of the main ways to solve the overcapacity of the domestic bus industry.

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