CHINO, Calif. – Chinese manufacturer CHTC Bus imported its first 15 motorcoaches this year and can now begin to earn its share of the U.S. market.
“We have operators who are buying those coaches right now and are just starting to run them,” said Mark Lein, director of sales at CHTC/USA.
“We are full-fledged and ready to go. Our goal is to grow and chip away at market share. There is enough pie here for everybody — we just want a piece of the market share to keep people working and provide more labor force for the U.S.”
China Hi-Tech Group Corporation, a state-owned business founded in 1998, has facilities in more than 20 Chinese provinces, operates 23 subsidiaries in 20 countries and employs more than 56,000 people around the world.
The company established its subsidiary CHTC/USA and announced during Motorcoach Expo 2015 in New Orleans its plans to enter the U.S. market with its HT 45 and HT 35 models.
The CHTC Commercial Bus Manufacturing Division works out of a 2 million-square-foot factory in Nanchang in southeastern China.
“The factory has been building buses and selling them throughout the world for about 30 years,” Lein said. “They were the first company to put Chinese buses in Australia and have sent about 2,500 there. They also have been selling buses in the Middle East, South America and the European Union. They have the ability to make 2,500 to 4,000 buses a year and decided to build buses for the United States.”
The CHTC website lists more than 100 models of motorcoaches, buses, automobiles, motor homes and other vehicles among its products.
The company studied U.S. regulations and talked with operators here before designing its coaches for the market, Lein said. “We called on customers and took their input. We took that back and made some changes to the motorcoaches. They went off one of their floor plans and built a bus to U.S. specs. Each country has different specs,” he said.
“Because CHTC has taken the time to talk with people and read the market, they are coming in with a lot of things that people are familiar with in the United States. The buses have the Cummins engine, Allison transmission, ZF axles and the REI video system on the TVs. CHTC is working with Hidral Gobel for Americans with Disabilities Act compliance and believe they have probably the nicest piece of ADA equipment on the market.
“The advantage we have is giving the customer a decent bus at a good price,”Lein said. “We will have good parts supply and service and feel we can come in and be very competitive.”
Mechanical components are imported into China so the coaches can be completely assembled in Nanchang. The body structure and chassis are built in China. The engine, transmission, axles and seats are installed there.
“Being assembled in China means labor rates are a lot better than they would be if the coach was shipped over and the components were added here,” Lein said.
CHTC lists its structural design and materials as additional selling points. Its marketing materials state: “Built from the world renowned Australian steel, processed by the most technically advanced smelting operation, the HT bus offers safety and strength unmatched by any conventional bus. The integral U-hoop of continuous steel provides a safe cocoon for passenger and driver. The combination of U-hoops and longitudinal beams provide amazing strength to withstand any side impact.”
CHTC also said this construction method “reduces the frame weight by 600 to 700 pounds when compared to conventional bus frames.”
The bus is wrapped in Australian Supergal® galvanized steel that “provides high-strength performance which can withstand anything Mother Nature throws at it” and “provides the added advantage of 15-percent weight reduction when compared to typical exterior materials,” the company said.
The HT 45 model lists a gross vehicle weight rating of 54,000 pounds with 56 seats in its standard configuration. It is powered by the Cummins ISX 425 EPA 2013 engine.
The 35-foot model carries a 37,800-pound GVWR, 40 seats and a Cummins ISL9 345 engine. Both use the Allison B500R transmission.
Both models share the same features, which include a premium sound system, LCD television monitors, an audiovisual connection panel, iPod connection and Wi-Fi compatibility.
Also, CHTC said, “We have ensured that our motorcoaches surpass collision and safety standards. All motorcoaches are equipped with an automatic engine bay fire extinguishing system, back-up camera, active radar anti-collision system, anti-lock braking system, electronic stability program, three-point seatbelts and more.”
“We decided to bring these two vehicles in first and go with them for the first three years,” Lein said. “CHTC is taking its time in coming into the U.S. People are going to find them a very reputable company.”
CHTC is opening in the U.S. with sales facilities in Orlando, Fla., and Chino, Calif. (where it also has a parts depot). CHTC also has service facilities around Los Angeles.
The company projects steady growth for the U.S. market, Lein said. “It has been reported that the motorcoach industry’s market growth is about 16 percent. Some people in the industry are saying that, in the near future, there will be more people visiting the U.S. than there are people here.
“There definitely is room for growth. If we could get to 1 percent or 2 percent of that market, that would probably be a fair number. We are not looking to sell 1,000 or 2,000 units a year, but we are looking to grow, help the operators and provide some stable jobs in the U.S.”
