Text | Qingcha

Foreword

In the galaxy of China's manufacturing industry, Yutong buses shine with unique light.

It is not the most dazzling technology company, nor is it the darling of the capital market, but with its perseverance and persistence, it has pushed domestic passenger buses to the world stage.

In 2024, revenue exceeded 37 billion yuan, sold to more than 130 countries, ranking first in the global bus industry.

Behind it is Tang Yuxiang, who came from rural Jiangsu and started from scratch.

How did he make a small factory on the verge of bankruptcy counterattack to become the world's number one?

Small factory breaks through

Yutong's predecessor was the Zhengzhou Bus Repair Factory established in 1963.

In that planned economy era, enterprises relied on unified purchase and sales to survive. However, with the institutional change, the repair and installation factory lost its market advantage and fell into trouble.

In the most difficult time, the factory workers had to rely on welding security doors to make a living.

A factory that once carried the hope of urban transportation was almost obscured in the torrent of the times.

In the early 1990s, China's urbanization accelerated and railways were unable to meet the surging passenger flow.

A large number of migrant workers need to rely on road passenger transport to enter and exit the city, which brings new demand to the bus industry.

At such a turning point, the young workshop director Tang Yuxiang keenly captured the opportunity.

He led the team to develop the first sleeper bus in China, allowing passengers to have a more comfortable rest experience during long-distance travel.

This innovation was quickly sought after by the market, and also allowed Tang Yuxiang to stand out and enter the core management position of the company.

In 1993, Zhengzhou Bus Factory completed its restructuring and was renamed Zhengzhou Yutong Bus Co., Ltd.

Four years later, Yutong was listed on the Shanghai Stock Exchange and became the "first bus stock in China".

This title gave Yutong a new stage, but it also brought heavy pressure.

At that time, China's bus industry was still in a low-level competition, and most companies were staying in the "assembly factory" stage and lacked core technology.

Tang Yuxiang knew that in order to gain a foothold in competition, he must master core R&D capabilities.

So, Yutong began to unswervingly invest in research and development.

In 2002, they jointly ventured with German MAN Company to master the core chassis technology and also learned advanced process management.

Since then, Yutong invested 4%-5% of its sales revenue every year in research and development, established a postdoctoral workstation, a national-level technology center, and launched the world's leading vehicle electrophoresis production line.

These investments have allowed Yutong to be the first to form technical barriers in the industry.

As early as 1999, Yutong launched China's first pure electric bus, more than ten years earlier than the new energy concept was popular.

BYD was just a battery manufacturer at that time, and Yutong was already at the forefront of the electrification road.

In terms of vehicle corrosion prevention, Yutong's vehicle electrophoresis process increases the salt spray resistance time from 240 hours of ordinary processes to 1,000 hours, greatly improving the vehicle life and quality.

Yutong also broke the monopoly of Toyota Coaster in China's high-end commercial vehicle market.

In more than ten years, four project managers have been replaced, and countless failures have been experienced, and the T7 business car was finally launched in 2015.

It not only breaks the market barriers of joint venture brands, but also allows domestic high-end commercial vehicles to gain a say in the market.

This series of breakthroughs marks that Yutong has grown from a small factory to a leader in China's bus industry.

Fighting the world

After gaining a foothold in the country, Tang Yuxiang turned his attention to a broader world.

Since 2003, Yutong officially launched its internationalization strategy.

Unlike the short-term exports of many companies, Tang Yuxiang proposed the "farming theory": Overseas markets are like land, which require careful cultivation, and from sowing to harvest, one step at a time.

Cuba is a classic battle for Yutong's internationalization.

Previously, many foreign car companies returned in Cuba, leaving behind a bad reputation.

Tang Yuxiang decided to find another way and establish a repair station and service network in the local area to solve after-sales problems.

At the same time, credit sales are allowed, without upper limit, so that customers do not have financial pressure.

Especially during the 2008 financial crisis, a large number of foreign companies evacuated Cuba, and Yutong not only stayed, but also provided $5 million in accessories support.

This integrity and responsibility made the Cuban government and people admire Yutong with admiration.

By 2016, Yutong's market share in Cuba exceeded 90%, almost becoming a national brand.

When locals see Chinese tourists, they will excitedly give a thumbs up and shout "Yutong".

Cuba's success is not an isolated case. In other countries, Yutong has also adopted a flexible strategy of "one country, one policy".

In Europe, they focus on environmental protection and safety standards of their products; in Africa, they provide durable and reliable models that adapt to harsh environments; in Latin America, they emphasize flexible financial and service solutions.

Through this differentiated approach, Yutong has gradually won the recognition of more and more customers.

As of June 2025, Yutong buses have exported more than 110,000 vehicles, with business covering more than 130 countries and regions.

Yutong can be seen on the streets of Cuba, the grasslands of Africa, or the urban bus system in Europe.

It is no longer just a Chinese brand, but also an important representative of China's manufacturing "going out".

Return of the King

Behind the glory, there are also pains. From 2010 to 2016, Yutong Bus ranked first in the world for seven consecutive years.

But since 2017, with the popularity of high-speed rail and the rapid growth of private cars, the bus industry has generally fallen into a trough.

Market demand shrinks and competition intensifies, and Yutong is not spared.

Sales have declined for five consecutive years, with only 41,000 vehicles remaining by 2021, almost halfway.

During this period, Tang Yuxiang had already retreated behind the scenes. But in 2019, he decided to come out of the mountain and lead Yutong out of the predicament.

He knew that relying solely on traditional bus business is already difficult to support the development of the enterprise, and new breakthroughs must be found.

So, Yutong began to fully transform to new energy and intelligence.

They not only continue to deepen their efforts in new energy buses, but also start to develop new energy trucks and enter the broader field of commercial vehicles.

At the same time, Yutong actively promotes intelligent networking technology, introduces autonomous driving and vehicle networking into products, and gives traditional passenger cars a new vitality.

They did not give up on the overseas market, but instead increased their efforts to deepen their localized operations.

After several years of adjustment, Yutong finally rebounded.

The 2024 financial report showed that the company's revenue reached 37.218 billion yuan, a year-on-year increase of 37.63%; net profit attributable to shareholders was 4.116 billion yuan, a year-on-year increase of 126.53%.

In the first half of 2025, revenue fell slightly, but net profit continued to grow, showing a significant improvement in the quality of the company's operating.

Yutong not only came out of the trough, but also returned to the peak of the industry with a more diversified attitude.

All this is inseparable from Tang Yuxiang's persistence. He was born in rural Yixing, Jiangsu in 1954. He had an indissoluble bond with a bus when he was a teenager to reduce the burden on his family.

For decades, he has always emphasized that "it is better to do what is on your head than do what is on your head."

He compared the enterprise to farming, and he needed to continue to work hard when the wind was not smooth and the rain was not smooth.

He never exaggerates his praise to the outside world, and is always low-key and pragmatic.

He often said: "Sales number one is nothing, it is the foundation to do things well."

Conclusion

The story of Yutong Bus is not only a growth history of a company, but also a microcosm of China's manufacturing going to the world.

From the repair factory to the world's number one, from sleeper buses to new energy intelligent connected buses, from the domestic market to more than 130 countries and regions, Yutong General has adhered to and innovated, breaking the prejudice of the Chinese brand "low-end OEM" and allowing the world to see the real "Made in China".

All this is inseparable from Tang Yuxiang's persistence and responsibility for decades.

He regards car manufacturing as "farming" and insists on sowing in the wind and rain to achieve the fruits of today's harvest.

Yutong's legend tells us: Real strength does not lie in temporary glory, but in long-term persistence and continuous innovation.