Core Insights - The domestic bus market in China showed significant growth in the first half of 2025, with passenger vehicle sales reaching 265,000 units, a year-on-year increase of 8.7%, more than double the growth rate of 3.9% in the same period of 2024 [2] - The growth in bus sales was particularly pronounced in June, with sales of 53,000 units, reflecting a month-on-month and year-on-year increase of 22.6% [2] - Key drivers of this growth include the rising penetration of new energy vehicles (NEVs), a resurgence in large public transport orders, and an increase in export activities [2] New Energy Vehicle Market - In the first half of 2025, sales of large and medium-sized buses (over 6 meters) reached 55,857 units, a year-on-year increase of 6.58%, with NEV sales accounting for 20,788 units, up 33.14% [3] - The growth in NEV sales is largely attributed to the government's "old-for-new" policy for electric buses, which increased subsidies for replacing old buses [3] - Local policies, such as higher subsidies in Jiangsu and Qinghai for replacing old buses with new energy buses, further support this growth [3] Export Market Performance - The export of large and medium-sized buses reached 25,396 units in the first half of 2025, a year-on-year increase of 16.51%, accounting for 50.02% of total bus sales [5] - Since 2016, domestic bus manufacturers have increasingly focused on overseas markets, with significant growth in exports observed in 2023 and 2024 [5] - Major companies like Yutong, King Long, and Zhongtong have prioritized export growth, with Yutong securing multiple large orders in Central Asia [5] Financial Performance of Key Companies - King Long Automobile expects a net profit of 116 million yuan, a year-on-year increase of 74.71%, while Zhongtong Bus anticipates a net profit between 165 million and 210 million yuan, reflecting a growth of 48.72% to 89.28% [6] - Both companies attribute their profit growth primarily to the increase in export business [6][7] - The overall performance of the bus industry in the first half of 2025 is considered strong, driven by high export growth and the need to expand into overseas markets due to domestic overcapacity [7]