China Electric Bus Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The Chinese electric bus market was valued at USD 23 billion in 2020 and is expected to reach USD 94 billion by 2026, registering a CAGR of about 26% during the forecast period (2021 - 2026).
The outbreak of COVID-19 and the subsequent shutdowns have affected the e-bus market in several countries. The negative impacts of the pandemic are visible in the global supply chains as several orders get delayed. Hence, the reduction in production rate at the start of the year due to the pandemic-induced disruptions affected the market in 2020. However, the market regained its growth by the end of 2020.
China is a key player in the global electric bus market and is anticipated to sustain its dominance during the forecast period. In May 2020, more than 420,000 electric buses were in China, which is about 99.0% of the global fleet. The keen focus on electrification of public transit with prevalent subsidies and national regulations is a major factor contributing to China's high market share in the global electric bus industry.
Furthermore, the Ministry of Transport in China is offering subsidies and other benefits for the development of low emission bus fleets, thereby further positively influencing the market. For instance, more than 61,000 new energy buses were sold by Chinese bus makers during 2020 despite the pandemic. The bus production in China accounted for around 15,000 units during 2020.
During the forecast period, China may continue to witness growth in the adoption of electric buses, as more than 30 Chinese cities have made plans to achieve 100% electrified public transit by the start of 2021, including Guangzhou, Zhuhai, Dongguan, Foshan, and Zhongshan in the Pearl River Delta, along with Nanjing, Hangzhou, Shaanxi, and Shandong.Key Market TrendsIncreased Adoption of Electric Buses in the Country
China is one of the largest manufacturers and consumers of electric buses in the world. The country’s domestic demand has been supported by the national sales targets, favorable laws, and supportive subsidies.
China has been one of the few developing countries that have been taking initiatives to curb vehicular pollution with the introduction of electric buses. By 2019, it was expected that 25% of the state government vehicle purchases of electric buses in China might feature zero-emission technology. Moreover, in 2020, Chinese bus makers sold around 61,000 new energy buses, whereas the total bus production in China accounted for around 150,000 units.
China is a key player in the global electric bus market and is anticipated to sustain its dominance during the forecast period. The keen focus on electrification of public transit with prevalent subsidies and national regulations is a major factor contributing toward the high market share of China in the electric bus market. For instance,
During the forecast period, China may continue to witness growth in the adoption of electric buses, as more than 30 Chinese cities have made plans to achieve 100% electrified public transit by the start of 2021, including Guangzhou, Zhuhai, Dongguan, Foshan, and Zhongshan in the Pearl River Delta, along with Nanjing, Hangzhou, Shaanxi, and Shandong.Shenzhen Leading the Chinese Electric Bus Market
With the growing focus on replacing IC engine vehicles with battery-powered vehicles, Shenzhen is leading the country. It has also become the world's first city with an entire bus fleet that runs on electricity. As per the city authorities, they received significant support from the Chinese government, along with funding. As of December 2018, all 16,000 buses in the city were electric, and it is expected that soon all 22,000 taxis will be converted into electric taxis.
To achieve the complete electric fleet goal, a Shenzhen public bus operator was granted a total of CNY 500,000 (USD 72,150) worth of subsidies every year for each vehicle it runs. Additionally, CNY 400,000 was granted from Shenzhen authorities and CNY 100,000 from the central government per vehicle to encourage the use of e-bus nationwide. Apart from that, Shenzhen Bus Group estimated that it has been able to conserve 160,000 metric ton of coal per year and has reduced annual CO2 emissions by 440,000 metric ton. It also reduced fuel consumption by 50%.Competitive Landscape
The electric bus market in the country is consolidated by major players, like BYD, Zhongtong Bus Holding Co. Ltd, eHiger, CRRC Electric, and Yutong. BYD continues to rank top in the market studied, owing to its increasing orders for electric buses from the domestic and international markets. The major players in the market have also adopted different strategies such as new product developments, collaborations, and contracts & agreements to sustain their market position. For instance,
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