In recent years, the urban public transport industry has actively transformed and upgraded itself through the promotion of new-energy buses in the drive for the construction of new-type urbanization and the fight against air pollution. New-energy buses perform well in saving energy and reducing emissions, while also being very quiet in operation. Governments and the industry, therefore, have attached great importance to new-energy buses which in turn has led to their rapid development .

Developing Rapidly to Help Environmental Protection

New-energy buses are more energy-efficient and environmentally friendly than their fuel-powered counterparts. Prioritizing the development of new-energy urban buses is not only important in supporting the fight against air pollution, but is also connected to the green development of urban transportation. At present, provinces and cities across China are accelerating their use of new-energy buses on the basis of comprehensively taking into account factors such as the degree of urbanization, environmental contamination, and the number of buses. 2019 data shows that nationwide there were 146 bus procurement projects with a procurement scale in excess of one million yuan, and that 134 of these projects  were for the procurement of new-energy buses. This shows the rapid development of new energy-driven buses.

Its Evident Features Make It a Natural Fit for Financial Leasing

Since financial leasing predominantly provides medium-and-long term funding, it is a natural fit for the new-energy bus business. Within clear national policy guidelines, financial leasing companies have increased investment in the new-energy bus business.

Financial leasing companies can select the right breakthrough point based on the factors they apply in gaining a competitive edge in the industry. At present, there are two main niche markets in the new-energy bus industry: first, the vehicle upgrades brought about by technological innovation and normal annual iterations; for example from the popularity of plug-in hybrid electric buses, through electric buses, and then to hydrogen fuel cell buses, bring long-term opportunities in the industry for the financial leasing business. Second, restrictions on bank credit policies and the time lag of national new-energy vehicle subsidies; some bus companies are in urgent need of working capital which makes financial leasing an attractive option.

JIC Leasing actively develops the new-energy bus financial leasing business. At present, JIC Leasing has provided financial support to bus companies in more than ten cities in China, including Jinan, Qingdao, Shijiazhuang, and Guiyang. JIC Leasing has invested a total of more than 1.2 billion yuan and will continue to increase investment to promote the transformation and upgrading of the new-energy bus industry and support the green development of urban transportation.