Yutong Buses Revolutionize Yangon’s Transportation

Chinese company’s export of buses and expertise modernize Myanmar’s public transport

In just a few years， China has surged ahead of other countries across East and Southeast Asia in its implementation of fast， efficient and cost effective public transportation. In addition to subway systems， buses have been key to improvements in ways citizens can get around. Such technology and expertise is now beginning to be exported， with Myanmar， China’s southwestern neighbor， as a key beneficiary.

The Zhengzhou Yutong Group， a bus developer based in central China’s Henan Province， signed a deal with the Yangon Region Transport Authority （YRTA） in April， agreeing to supply 10-meter-long buses to Myanmar’s largest city.

Export of Technology and Standards

Chen Xufei， an account manager with the Overseas Marketing Department of the Yutong Bus Company， was key to the agreement. However， the export process was not always smooth. Chen said that after asking the YRTA whether they required buses with steering wheels on the right-side or the left-side of the vehicle， the YRTA replied they had no preference. This confused Chen and his team of technicians. Upon further enquiry， they learned that most of the buses running on the streets of Yangon are second-hand vans imported from either Japan （where cars drive on the left-hand side of the road） or South Korea （right-hand side）. In addition， as its vehicles come from different countries， Myanmar has no unified emissions or safety standards for the cars on its roads.

“When we arrived in Myanmar， we found that the roads in Myanmar were designed for cars which should have the steering wheel on the left， so we suggested to our clients that they order buses reflecting this，” Chen said. “Apart from supplying buses， Yutong has also built a knock-down assembly plant [in which an automobile manufacturer produces individual parts domestically before they are exported and assembled at a plant in the local target market] in Yangon. Yutong has also been working with the local government to establish standards for local passenger cars and assistance in training local bus drivers.”

Yutong conducts extensive research before it enters a foreign market. Chang Hao， deputy director of the Overseas Marketing Department at the Yutong Bus Company， explained that “in the development of the overseas market， Yutong has never hurried to enter a foreign market which it doesn’t understand. Yutong must conduct thorough market research first， then formulate a strategy based on the target market’s characteristics， the usage habits of its clients， financing and policy conditions.”

In Myanmar， summer starts in April， and temperatures often soar past 40 degrees Celsius. The six-month-long rainy season then begins in late May or early June. Before Yutong began supplying buses， most of the buses in Yangon lacked air conditioning.

To suit Myanmar’s hot and wet climate， Yutong worked to develop a design that can ensure the bus chassis will not rust and corrode within its first 10 years of use. At the same time， Yutong also made some personalized adjustments on bus chassis and suspension to suit Myanmar’s generally poor road conditions.

In total， Yutong has exported more than 1，000 buses to Myanmar， and has occupied the largest market share of the bus segment in Myanmar for several years in a row. In addition to Myanmar， in the year 2016， Yutong delivered a combined 7，121 buses and coaches to the UK， France， Israel， Venezuela， Cuba and Saudi Arabia.

Apart from products and technologies， Chinese manufacturing standards and regulations are also being exported. Chang said that because of Yutong’s market share and brand credibility in Myanmar， China Compulsory Certification， a product conformity assessment system implemented by China which requires that products comply with national standards and technical regulations， has also become important standard used in Myanmar.

Unimpeded Trade

Wang Ningning， a Chinese maintenance technician that Yutong dispatched to Myanmar， said that one day as he drove home， a bus ahead of him pulled to the roadside with its four-way lights flashing. Wang pulled over， got out of his car and approached the bus driver to ask what happened. The bus had broken down， and company technicians were a great distance away. Fortunately， Wang had tools and some spare parts on his own car， and he quickly repaired the bus. The next day， the bus owner came to Wang’s office to thank for his help and expressed interest in purchasing Yutong buses.

“The Belt and Road Initiative sounds abstract on the surface， but to Yutong， we understand it in a very specific way，” Chang said. “Wang Ningning’s story is commonplace， as Yutong’s staff members in Myanmar do everything they can to help the local people. Yutong’s products and its staff’s actions give local people a greater understanding of Yutong as well as China as a whole.”

Chang added that in the early stages of building the knock-down assembly plant in Myanmar， Yutong provided a three-month training program for 50-plus managers and technicians from Myanmar at its China headquarters. Yutong’s Chinese technicians taught their Myanmar colleagues about new technology and proper methods of machinery operation. After three months， these Myanmar trainees said “there are still so much to learn and we don’t want to leave.” In response， Yutong extended the training program for an additional three months.

“As the Myanmar staff members’ and clients’ technical expertise has improved， they are developing an appetite for more and more ambitious projects，” Chang said. “Now， when they come to Yutong， they don’t just explore which products are available， but also examine Yutong’s current research and development efforts. They show strong interest in new products. In the future， Yutong will expand its Myanmar export portfolio to include hybrid and new energy models.”