(Yicai Global) March 28 -- Zhengzhou Yutong Bus Co. [SHA:600066], the world's largest bus manufacturer, will not pitch in the US market as it believes it can make enough money in countries that are more welcoming of Chinese products.
Tang Yuxiang, chairman of Yutong, said the company had tapped into more than 130 overseas markets, including Singapore, Russia and Saudi Arabia, Bloomberg reported today. Thanks to such move, the company's sales last year climbed by nearly 6 percent, and its profit grew for 21 consecutive years.
"We will not do business in North America," said 63-year-old Tang. "The relations between China and the US are not quite amicable, and we prefer entering markets that are friendly to China."
Despite not entering the US and Canadian markets, Yutong's sales in public transport buses, tour buses and school buses have far exceeded other competitors including China's BYD Auto Co. [SHE:002594] and Germany's MAN. Yutong buses can be found throughout the nation, from Beijing to Shanghai to Lhasa. It has also become designated vehicles during the two sessions.
Unlike Yutong Bus which is not interested in the North America market, other Chinese automakers have been striving for entering the US market since 2005. GAC Group just announced its plans to seek development in North America, with an aim to enter the US market as early as in 2018.
Last year China exported products worth USD462.8 billion to the US, where BYD has a dominant market position. BYD provided electric passenger cars to bus transport administration of Long Beach, California, and its electric car plant in Lancaster, California, also started production three years ago.
Li Ke, BYD's senior vice president, said earlier this year that the company expects to enter the passenger car market after enhancing its bus brand popularity in the US.