China Electric Bus Market Overview, 2029

China Electric Bus Market Overview, 2029

China has emerged as a global leader in electric buses, revolutionizing urban transportation and spearheading the transition to clean energy vehicles on a massive scale. The story begins in the early 2000s when China faced severe air pollution problems, particularly in major cities like Beijing and Shanghai. Determined to address environmental concerns and reduce reliance on imported oil, the Chinese government launched ambitious initiatives to promote electric vehicles, including electric buses. In 2009, the Chinese government introduced subsidies and incentives to encourage the adoption of electric buses, providing significant financial support to transit agencies and bus manufacturers. This policy created a favourable environment for the development and deployment of electric buses, leading to a surge in production and sales. As a result of government support and technological advancements, Chinese companies quickly emerged as leaders in the electric bus industry. Companies like BYD (Build Your Dreams) and Yutong became household names, producing innovative electric bus models with impressive range, performance, and reliability. The entry of electric buses into China's markets was marked by bold initiatives and large-scale deployments. Cities across China began replacing their aging diesel bus fleets with electric buses, transforming urban transportation networks and improving air quality. China's thriving tourism industry further adds to the allure of its electric bus market. With iconic attractions such as the Great Wall, the Terracotta Army, and the Yangtze River, China attracts millions of domestic and international tourists each year. Electric buses provide eco-friendly and comfortable transportation for visitors exploring cultural landmarks, natural wonders, and historic sites across the country. In tourist destinations like Guilin, Hangzhou, and Lijiang, electric sightseeing buses offer silent and emission-free travel experiences, enhancing the visitor experience while preserving the natural beauty of these scenic locales. Furthermore, China's ambitious initiatives to promote electric vehicles, including subsidies, incentives, and investment in charging infrastructure, create a supportive environment for the widespread adoption of electric buses.

According to the research report ""China’s Electric Bus Market Overview, 2029,"" published by Bonafide Research, the China’s Electric Bus Market is expected to grow at more than 9% CAGR from forecasting period 2024 to 2029. China's electric bus market continues to evolve, driven by innovation, government policies, and a commitment to sustainability. As the global demand for electric buses grows, Chinese manufacturers are expanding their reach into international markets, exporting their expertise and technology to cities around the world. China is a key player in the global electric bus market and is home to 98% of the world's electric buses. China is anticipated to sustain its dominance during the forecast period. In March 2021, more than 421,000 electric buses were in use in China, which amounts to about 99.0% of the global fleet. The keen focus on the electrification of public transit with prevalent subsidies and national regulations is a major factor contributing to the high market share of China in the global electric bus market. Moreover, China's Ministry of Transport is offering subsidies and other benefits for the development of low-emission bus fleets, thereby further positively influencing the market. For instance, 61,000 more new energy buses were sold by Chinese bus makers in 2020, despite the pandemic. Shenzhen and Guangzhou are leading cities in fully electric bus fleets, while more Chinese cities are expected to follow the same in coming years.

The report has been segmented on the basis of different types of criteria including vehicle type, application and end- user segment. On the basis of vehicle type, three types of electric buses- Battery Electric Buses, Hybrid Electric Buses, and Fuel Cell Electric Buses, the battery electric bus stands out as the dominant player in the Chinese electric bus market. This can be attribute to China’s effective policies that encourages the adoption of electric vehicles, aimed at reducing carbon footprint and combatting air pollution. Cities across China began replacing their aging diesel bus fleets with electric buses, transforming urban transportation networks and improving air quality. One of the most remarkable examples of China's embrace of electric buses is Shenzhen, a megacity in southern China. In 2011, Shenzhen launched an ambitious plan to electrify its entire bus fleet, aiming to become the world's first city with an all-electric bus fleet. With strong government support and partnerships with domestic manufacturers like BYD, Shenzhen achieved this goal ahead of schedule, demonstrating the feasibility and benefits of electric buses on a massive scale.

On the basis of Application, the electric bus market in China showcases a multifaceted landscape. One prominent application driving market growth is urban transit. China's rapidly urbanizing population and increasing concerns over air pollution and traffic congestion have created a significant demand for sustainable transportation solutions in its bustling cities. Municipal governments across the country, including in megacities like Beijing, Shanghai, and Guangzhou, are increasingly investing in electric bus fleets to address these challenges and provide residents with cleaner and more efficient public transportation options. Another noteworthy application of electric buses in China is in the tourism industry. With its rich cultural heritage, diverse landscapes, and iconic attractions, China attracts millions of domestic and international tourists each year. Electric buses play a crucial role in facilitating sustainable tourism experiences, offering eco-friendly transportation solutions for visitors exploring popular destinations such as the Great Wall, the Terracotta Army, and the Zhangjiajie National Forest Park.

On the basis of End- User, China's electric bus market has a diverse array of end- users, one significant end- user segment in China's electric bus market is the transportation industry. With the world's largest population and a burgeoning middle class, China's demand for intercity and long-distance transportation is substantial. Electric buses are increasingly being deployed in intercity bus services, airport shuttles, and tourism routes, providing efficient and environmentally friendly transportation options for travellers. Additionally, electric buses are gaining popularity among corporate enterprises and private businesses for employee transportation, campus shuttles, and logistics operations, driven by cost savings, government incentives, and corporate sustainability initiatives. Another significant end-user group driving market demand is municipal governments and public transit agencies. In China's rapidly urbanizing cities like Beijing, Shanghai, and Guangzhou, where traffic congestion and air pollution are pressing concerns, there's a growing need for sustainable transportation solutions. Electric buses offer an attractive option for these municipalities, providing zero-emission transit that aligns with China's ambitious environmental goals and commitment to reducing greenhouse gas emissions. Moreover, China's massive investment in urban infrastructure and public transportation systems, coupled with government subsidies and incentives for electric vehicle adoption, has accelerated the deployment of electric buses across the country.

At the beginning of 2020, the automotive goods and supply chain market were drastically impacted by COVID-19. Also, travel restrictions and lockdowns resulted in a slowdown in electric vehicle sales. The pandemic disrupted global supply chains, causing delays in the production and delivery of electric bus components and equipment. Chinese manufacturers faced challenges sourcing raw materials, components, and batteries from suppliers, leading to production slowdowns and temporary closures of manufacturing facilities. During the height of the pandemic, many cities in China implemented lockdowns and travel restrictions to curb the spread of the virus. As a result, public transit ridership plummeted, leading to reduced demand for new buses, including electric buses. Transit agencies postponed or scaled back their procurement plans, impacting sales and revenue for electric bus manufacturers. But to mitigate the economic impact of the pandemic, the Chinese government implemented stimulus measures and support policies to boost domestic consumption and investment. Some of these measures included subsidies and incentives for electric vehicle purchases, which helped bolster demand for electric buses and encouraged transit agencies to continue their fleet electrification efforts. Overall, while the COVID-19 pandemic presented challenges for China's electric bus market in the short term, the industry has shown resilience and adaptability. With continued government support, technological innovation, and growing environmental awareness, China's electric bus market is poised for sustained growth in the years to come.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Electric Bus market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Vehicle
• Battery Electric Vehicle
• Plug-in Hybrid Electric Vehicle
• Fuel Cell Electric Vehicle

By Application
• Intercity
• Intra-city

By End-Use
• Private
• Public

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Electric Bus industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.