ZHEJIANG, China, Dec. 21, 2010 /PRNewswire-Asia-FirstCall/ -- SORL Auto Parts, Inc. (Nasdaq: SORL) ("SORL" or "The Company"), a leading manufacturer and distributor of automotive brake systems as well as other key safety-related auto parts in China, announced today that the Yutong Group, Asia's largest bus manufacturer, has agreed to purchase disc spring chambers exclusively from SORL in 2011, replacing imported products that Yutong had previously purchased.
The new orders are expected to increase SORL's 2011 sales to the Yutong Group by 100%. Sales to the entire bus market in 2011 are expected to reach RMB 50 million, more than a 100% increase compared with bus sales in 2010. The Company's market share in the bus market is expected to rapidly expand with these new orders.
SORL entered the bus market in 2007 and has already established long-term relationships with leading domestic bus original equipment manufacturers ("OEMs), mainly supplying air brake products for buses in intra-city long-haul transportation. New orders for disc brake products received in November 2010 will also help the Company further expand in the long-distance bus market.
Mr. Baojian Tao, Chief Operating Officer of SORL, commented, "We are very pleased to achieve this new breakthrough in the growing Chinese bus market as disc brake products are a new growth area for the Company. As one of our leading markets, the bus market has achieved rapid growth in recent years. Successfully replacing imported products demonstrates the increasing quality and higher technology content of our products to meet global safety standards. We are continuing to enhance our technological innovation, further improve our product quality, and introduce more new, advanced products to expand our market share and increase our earnings."
About Yutong Group
Headquartered in Zhengzhou, Henan Province, Zhengzhou Yutong Group Limited, Inc. ("Yutong Group") is a large enterprise group whose core business is the bus market. In 2009, Yutong Group made its seventh consecutive appearance on the list of "China's Largest 500 Enterprise Groups" published by the National Bureau of Statistics of China as it continues to lead China's growing bus industry. It has grown into one of the largest and the most technically advanced manufacturing bases of large- and medium-sized buses around the world and became China's largest bus manufacturer. In 2009, Yutong Group's sales in large- and medium-sized buses, machinery, and special vehicles totaled 35,194 units, up 11.1% from the previous year. Revenues in 2009 were RMB 15 billion, up 6.7% year-over-year, and the Yutong Group continued to be ranked as No. 1 in company scale and sales in the industry.
About SORL Auto Parts, Inc.
As China's leading manufacturer and distributor of automotive air brake systems and other related auto parts. SORL Auto Parts, Inc. ranked No. 1 for market share in China in the segment for commercial vehicles, such as trucks and buses. The Company distributes products both within China and internationally under the SORL trademark. SORL is listed among the top 100 auto component suppliers in China, with a product range that includes 40 categories with over 1000 specifications in air brake system, air controlling system and others. The Company has four authorized international sales centers in Australia, UAE, India, and the United States. SORL is working to establish a broader global sales network. For more information, please visit http://www.sorl.cn.
Safe Harbor Statement
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as "will", "believes", "expects" or similar expressions. These forward-looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov .
SOURCE SORL Auto Parts, Inc.