Market Overview
| Study Period | 2017 - 2029 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2029 |
| Market Size (2025) | USD 42.64 Billion |
| Market Size (2029) | USD 51.14 Billion |
| Growth Rate (2025 - 2029) | 4.65% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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China Electric Bus Market Analysis by Mordor Intelligence
The China Electric Bus Market size is estimated at 42.64 billion USD in 2025, and is expected to reach 51.14 billion USD by 2029, growing at a CAGR of 4.65% during the forecast period (2025-2029).
China's electric bus industry has witnessed remarkable technological advancement and electric bus infrastructure development, positioning the country as a global leader in sustainable public transport. The nationwide electric bus charging infrastructure has expanded significantly, with the country boasting 1,760,000 charging stations by 2022, creating a robust foundation for electric bus operations. This extensive network has been complemented by continuous improvements in battery technology, with manufacturers implementing advanced safety features and enhanced energy management systems. The integration of smart charging solutions and vehicle-to-grid capabilities has further strengthened the operational efficiency of electric bus fleets.
The industry landscape is being shaped by strategic partnerships and collaborative innovations among key stakeholders. Major manufacturers are actively pursuing technological breakthroughs, as evidenced by Yutong Bus's unveiling of new 10.5m and 12m hydrogen fuel cell buses at the 2023 Zhengzhou International New Energy Vehicle Expo. These developments showcase the industry's commitment to diversifying propulsion technologies and expanding product portfolios. The market has also witnessed a surge in product innovation, with manufacturers announcing 105 new XEV models in 2023, reflecting the industry's dynamic response to evolving market demands.
Manufacturing capabilities have undergone significant enhancement, with companies investing in state-of-the-art production facilities and advanced manufacturing processes. The integration of artificial intelligence and automation in production lines has improved efficiency and quality control, while the adoption of modular design approaches has enabled manufacturers to offer customized solutions more effectively. Battery technology has seen notable progress, with the average cost of lithium-ion batteries decreasing to 144 USD/kWh in 2023, making battery electric bus increasingly cost-competitive with traditional alternatives.
The industry has demonstrated a strong focus on developing next-generation electric bus technologies, particularly in autonomous driving and connectivity features. Companies are incorporating advanced driver assistance systems (ADAS) and implementing 5G connectivity solutions to enhance operational safety and efficiency. This technological evolution is complemented by the emergence of innovative business models, including battery leasing programs and integrated fleet management solutions, which are helping to reduce the total cost of ownership for operators while improving service reliability. These advancements are supported by robust research and development initiatives, with manufacturers establishing dedicated innovation centers and forming strategic alliances with technology providers.
China Electric Bus Market Trends and Insights
Government initiatives and strong OEM investments drive rapid drowth in electric vehicle sales in China
- The programs launched by the government to reduce gas emissions caused by vehicle fuels are encouraging consumers to shift to green vehicles. In November 2020, the government of China announced a ban on fossil fuel vehicles by 2035, clearly stating the selling of 100% new energy vehicles under the new energy program. As a result, the demand for electric cars increased. Adopting such regulations enhanced the sales of electric cars and various types of battery packs used in them in China in recent years.
- The government is introducing various schemes and incentives for customers and manufacturers to promote and enhance the demand for electric vehicles in the country. In May 2022, the government announced the reintroduction of the subsidy program to increase the sales of electric vehicles. Moreover, the government will allocate a subsidy of USD 1500 to customers opting for an electric car. Such factors have encouraged customers to invest in electric mobility, which further has increased the sales of electric cars by 2.90% in 2022 over 2021 in China.
- The growing demand for electric vehicles has forced OEMs to plan to increase development and production in the electric vehicle category. In 2021, General Motors announced its plans to raise its spending on electric and autonomous vehicles to USD 20 billion by 2025. The company is expected to launch 20 new electric models by 2023 and aims to sell more than 1 million electric cars a year in China. As a result, these factors are expected to drive the electric vehicle market in China during the 2024-2030 period.
Understand The Key Trends Shaping This Market
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- China's population, influenced by factors like aging demographics and reduced birth rates, is anticipated to decline further, reaching 1,395.21 million by 2030
- A stable and optimistic growth trend is anticipated for 2024-2030, supported by technological innovations and a growing consumer base
- China's MaaS revolution is a journey of growth and projections in shared mobility
- The declining cost of lithium-ion batteries drives electric vehicle demand in China
- The demand for crude oil in China is expected to decline slightly owing to strong demand for EVs
- China's GDP per capita expected to continue rising driven by long-term economic strategies, innovation, and global positioning
- Achieving steady inflation is a strategic imperative for China's sustained economic dominance
- China's electric vehicle charging station market soared to 1,000,000 slow charging and 760,000 fast charging stations in 2022, with future projections on the rise
- New Chinese electric vehicle debuts are driving the demand for battery packs
- China's HEV sector for passenger cars is witnessing significant shifts, with BYD Auto's production surging, indicating strong market dominance and policy support
Segment Analysis: Fuel Category
BEV Segment in China Electric Bus Market
Battery Electric Vehicles (BEV) maintain their dominant position in China's battery electric bus market, commanding approximately 95% market share in 2024. This overwhelming market leadership is driven by China's robust charging infrastructure development, favorable government policies, and increasing environmental consciousness among public transport operators. Major cities across China have been rapidly transitioning their public transportation fleets to battery electric buses, supported by substantial government subsidies and incentives. The segment's growth is further bolstered by technological advancements in battery technology, resulting in improved range and performance capabilities. Chinese manufacturers have also played a crucial role in this segment's dominance by continuously introducing innovative battery electric bus models with enhanced features and competitive pricing strategies.
FCEV Segment in China Electric Bus Market
The Fuel Cell Electric Vehicle (FCEV) segment is emerging as the most dynamic growth sector in China's electric bus market, with projections indicating an impressive growth rate of approximately 23% during 2024-2029. This remarkable expansion is primarily attributed to significant technological breakthroughs in hydrogen fuel cell technology and the government's increasing focus on developing hydrogen infrastructure. Chinese authorities are actively promoting FCEV adoption through specialized pilot programs and dedicated funding initiatives. The segment's growth is further supported by the advantages FCEVs offer in terms of quick refueling times and longer operational ranges compared to traditional electric buses. Major bus manufacturers are increasingly investing in FCEV technology, leading to enhanced product offerings and improved cost efficiencies.
Remaining Segments in Fuel Category
The Hybrid Electric Vehicle (HEV) and Plug-in Hybrid Electric Vehicle (PHEV) segments represent important transitional technologies in China's electric transit bus market. These segments cater to specific market needs where pure electric solutions may not be optimal, such as regions with limited charging infrastructure or routes requiring extended operational ranges. HEVs continue to serve as a practical stepping stone for operators transitioning from conventional to fully electric fleets, while PHEVs offer a balanced solution combining the benefits of both electric and conventional powertrains. Both segments benefit from ongoing technological improvements and are particularly relevant in tier-2 and tier-3 cities where full electrification infrastructure is still developing. The increasing adoption of electric city buses and zero-emission buses in these regions highlights the growing importance of these transitional technologies.
Competitive Landscape
Top Companies in China Electric Bus Market
The Chinese electric bus market is characterized by intense competition and rapid technological advancement among key players. Companies are heavily investing in research and development to introduce innovative features such as improved battery technology, autonomous driving capabilities, and enhanced passenger comfort systems. Strategic partnerships, particularly with technology providers and infrastructure developers, have become increasingly common as companies seek to strengthen their market positions. Manufacturers are expanding their production facilities and distribution networks both domestically and internationally, with a particular focus on emerging markets. The industry has witnessed a significant shift towards sustainable manufacturing practices and the development of comprehensive after-sales service networks. Companies are also adapting their product portfolios to meet diverse customer requirements, from urban transit to long-distance transportation, while simultaneously working on reducing total ownership costs through technological innovations.
Local Giants Dominate Electric Bus Landscape
The Chinese electric bus market is predominantly controlled by domestic manufacturers who have established strong footholds through years of experience and government support. These local players, including state-owned enterprises and private companies, have developed extensive manufacturing capabilities and a deep understanding of regional market dynamics. The market structure shows a moderate level of consolidation, with several major players holding significant market shares while maintaining healthy competition. Joint ventures and strategic collaborations between domestic and international companies have become increasingly common, fostering technology transfer and innovation within the industry. The market has also witnessed vertical integration efforts, with manufacturers expanding into electric bus components production and electric bus charging infrastructure development.
The competitive landscape is further shaped by the presence of large automotive conglomerates that have diversified into the electric bus segment, leveraging their existing resources and expertise. These companies benefit from economies of scale and established supply chain networks, allowing them to maintain competitive pricing strategies. While mergers and acquisitions activity has been relatively modest, strategic partnerships and technology-sharing agreements have become increasingly prevalent. The market also sees regular entry of new players, particularly those focusing on specific niches such as autonomous driving technology or specialized vehicle applications.
Innovation and Adaptation Drive Future Success
Success in the Chinese electric bus market increasingly depends on companies' ability to innovate while maintaining cost competitiveness. Manufacturers must focus on developing advanced battery technologies, improving vehicle range, and reducing charging times to meet evolving customer demands. Building strong relationships with local governments and transport authorities has become crucial, as public procurement continues to drive significant market growth. Companies need to invest in robust research and development capabilities while maintaining flexible production systems that can adapt to changing market requirements. The ability to offer comprehensive solutions, including charging infrastructure and fleet management systems, has become a key differentiator in the market.
For new entrants and smaller players, success lies in identifying and exploiting specific market niches while building strong technological capabilities. Companies must carefully navigate the regulatory landscape, particularly regarding environmental standards and safety requirements, which continue to evolve. The development of strong after-sales service networks and maintenance support systems has become increasingly important for long-term success. Players must also consider the growing influence of environmental consciousness among end-users and adapt their strategies accordingly. The ability to form strategic partnerships, particularly in areas like battery technology and autonomous driving systems, will be crucial for maintaining competitiveness in this rapidly evolving market.
China Electric Bus Industry Leaders
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Chery Automobile Co. Ltd.
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Chongqing Changan Automobile Company Limited
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King Long United Automotive Industry Co. Ltd.
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Zhejiang Geely Holding Group Co. Ltd
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Zhengzhou Yutong Bus Co. Ltd.
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- September 2023: Yutong announced that it held a shipping ceremony for 87 apron buses exported from China to Saudi Arabia in the Yutong New Energy Plant. It is the largest batch of apron buses exported from China.
- July 2023: Yutong Group commemorated the bus delivery ceremony, which took place in Astana, Kazakhstan.
- July 2023: Yutong Group formed a partnership with Langfang Transportation to jointly promote the development of New Energy logistics transportation.
China Electric Bus Market Report Scope
BEV, FCEV, HEV, PHEV are covered as segments by Fuel Category.
Fuel Category
| BEV |
| FCEV |
| HEV |
| PHEV |
| Fuel Category | BEV |
| FCEV | |
| HEV | |
| PHEV |
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Market Definition
- Vehicle Type - The category includes Medium and Heavy Duty Buses.
- Vehicle Body Type - This include Bus category.
- Fuel Category - The category exclusively covers electric propulsion systems, including various types such as HEV (Hybrid Electric Vehicles), PHEV (Plug-in Hybrid Electric Vehicles), BEV (Battery Electric Vehicles), and FCEV (Fuel Cell Electric Vehicles).
| Keyword | Definition |
|---|---|
| Electric Vehicle (EV) | A vehicle which uses one or more electric motors for propulsion. Includes cars, buses, and trucks. This term includes all-electric vehicles or battery electric vehicles and plug-in hybrid electric vehicles. |
| BEV | A BEV relies completely on a battery and a motor for propulsion. The battery in the vehicle must be charged by plugging it into an outlet or public charging station. BEVs do not have an ICE and hence are pollution-free. They have a low cost of operation and reduced engine noise as compared to conventional fuel engines. However, they have a shorter range and higher prices than their equivalent gasoline models. |
| PEV | A plug-in electric vehicle is an electric vehicle that can be externally charged and generally includes all-electric vehicles as well as plug-in hybrids. |
| Plug-in Hybrid EV | A vehicle that can be powered either by an ICE or an electric motor. In contrast to normal hybrid EVs, they can be charged externally. |
| Internal combustion engine | An engine in which the burning of fuels occurs in a confined space called a combustion chamber. Usually run with gasoline/petrol or diesel. |
| Hybrid EV | A vehicle powered by an ICE in combination with one or more electric motors that use energy stored in batteries. These are continually recharged with power from the ICE and regenerative braking. |
| Commercial Vehicles | Commercial vehicles are motorized road vehicles designed for transporting people or goods. The category includes light commercial vehicles (LCVs) and medium and heavy-duty vehicles (M&HCV). |
| Passenger Vehicles | Passenger cars are electric motor– or engine-driven vehicles with at least four wheels. These vehicles are used for the transport of passengers and comprise no more than eight seats in addition to the driver’s seat. |
| Light Commercial Vehicles | Commercial vehicles that weigh less than 6,000 lb (Class 1) and in the range of 6,001–10,000 lb (Class 2) are covered under this category. |
| M&HDT | Commercial vehicles that weigh in the range of 10,001–14,000 lb (Class 3), 14,001–16,000 lb (Class 4), 16,001–19,500 lb (Class 5), 19,501–26,000 lb (Class 6), 26,001–33,000 lb (Class 7) and above 33,001 lb (Class 8) are covered under this category. |
| Bus | A mode of transportation that typically refers to a large vehicle designed to carry passengers over long distances. This includes transit bus, school bus, shuttle bus, and trolleybuses. |
| Diesel | It includes vehicles that use diesel as their primary fuel. A diesel engine vehicle have a compression-ignited injection system rather than the spark-ignited system used by most gasoline vehicles. In such vehicles, fuel is injected into the combustion chamber and ignited by the high temperature achieved when gas is greatly compressed. |
| Gasoline | It includes vehicles that use gas/petrol as their primary fuel. A gasoline car typically uses a spark-ignited internal combustion engine. In such vehicles, fuel is injected into either the intake manifold or the combustion chamber, where it is combined with air, and the air/fuel mixture is ignited by the spark from a spark plug. |
| LPG | It includes vehicles that use LPG as their primary fuel. Both dedicated and bi-fuel LPG vehicles are considered under the scope of the study. |
| CNG | It includes vehicles that use CNG as their primary fuel. These are vehicles that operate like gasoline-powered vehicles with spark-ignited internal combustion engines. |
| HEV | All the electric vehicles that use batteries and an internal combustion engine (ICE) as their primary source for propulsion are considered under this category. HEVs generally use a diesel-electric powertrain and are also known as hybrid diesel-electric vehicles. An HEV converts the vehicle momentum (kinetic energy) into electricity that recharges the battery when the vehicle slows down or stops. The battery of HEV cannot be charged using plug-in devices. |
| PHEV | PHEVs are powered by a battery as well as an ICE. The battery can be charged through either regenerative breaking using the ICE or by plugging into some external charging source. PHEVs have a better range than BEVs but are comparatively less eco-friendly. |
| Hatchback | These are compact-sized cars with a hatch-type door provided at the rear end. |
| Sedan | These are usually two- or four-door passenger cars, with a separate area provided at the rear end for luggage. |
| SUV | Popularly known as SUVs, these cars come with four-wheel drive, and usually have high ground clearance. These cars can also be used as off-road vehicles. |
| MPV | These are multi-purpose vehicles (also called minivans) designed to carry a larger number of passengers. They carry between five and seven people and have room for luggage too. They are usually taller than the average family saloon car, to provide greater headroom and ease of access, and they are usually front-wheel drive. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all its reports.
- Step-1: Identify Key Variables: To build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built based on these variables.
- Step-2: Build a Market Model: Market-size estimations for the historical and forecast years have been provided in revenue and volume terms. Market revenue is calculated by multiplying the sales volume with their respective average selling price (ASP). While estimating ASP factors like average inflation, market demand shift, manufacturing cost, technological advancement, and varying consumer preference, among others have been taken into account.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables, and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms.
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