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*Southeast Asian Electric Two-Wheeler Market Overview** Under the encouragement of policies promoting the transition from fuel to electric vehicles and the rapid growth of the new energy market, local motorcycle brands in Southeast Asia are also entering the electric two-wheeler market. They either collaborate with major manufacturers or independently design and launch new models to claim a share of the market. Compared to Japanese and Western brands, which are widely accepted across Southeast Asia, local brands primarily concentrate on the high-sales markets of Indonesia, Vietnam, and Thailand. **Indonesia: Expanding Local Electric Motorcycle Brands** In recent years, Indonesia has witnessed a continuous growth and diversification of local electric motorcycle brands, including SMOOT, MAKA Motors, Gen Indonesia, and Ilectra Motor Group (IMG). Gen Indonesia, established in 2018, aims to disrupt the market by integrating smart hardware and software to develop eco-friendly and energy-efficient electric motorcycles. SMOOT, a brand under Southeast Asia’s electric motorcycle group SWAP, sells electric motorcycles and leverages SWAP’s battery-swapping technology and smart app SWAP Energi to offer users a more convenient electric travel experience. MAKA Motors, founded in 2021, aims to offer competitively priced electric motorcycles that perfectly blend mileage, power, usability, and durability. Established in 2022, IMG focuses on developing electric two-wheelers and aims to build a supporting ecosystem, including infrastructure related to electric vehicles. **Vietnam: A Growing Enthusiasm for Electric Two-Wheelers** Vietnamese consumers have shown great enthusiasm for electric bicycles, electric motorcycles, and scooters. The Vietnamese market is home to many active players, including Honda and Yamaha, which have been planning to introduce more electric models in response to the increasingly saturated fuel-powered motorcycle market. Vietnamese company VinFast started producing electric two-wheelers in 2017, with an annual capacity of 500,000 units. Although VinFast’s electric two-wheeler sales have increased over the past two years, the company is still in the investment phase and is spending on strengthening local two-wheeler infrastructure. Following VinFast’s launch of a series of electric motorcycles and its capture of the market, other motorcycle companies have also entered the fray. Local brands such as Pega, Dibao, Anbico, Dat Bike, and Selex Motors have also seen strong sales in Vietnam. Pega entered the Vietnamese market in 2012, collaborating with manufacturers like Honda and Yamaha to launch its first localized product in 2017. Dibao, operating since 2001, targets young Vietnamese consumers and has achieved high sales in electric motorcycles and 50cc motorcycles. Anbico, established in 2015, has become one of Vietnam’s top electric motorcycle manufacturers. Dat Bike, founded in 2019, focuses on addressing the limitations of most electric motorcycles in the Vietnamese market by offering models that rival fuel-powered motorcycles in terms of capacity and speed. Selex Motors, established in 2018, specializes in high-usage scenarios like logistics and delivery services, capable of transporting heavier loads than traditional motorcycles. **Thailand: Home of Manufacturing for Foreign Motorcycle Companies** Thailand has become a manufacturing hub for many foreign motorcycle companies, with many imported brands being produced there. However, local Thai motorcycle brands are relatively few, with GPX being a standout. Founded in 2007, GPX launched its first off-road motorcycle two years later. The brand’s product line now includes both off-road motorcycles and electric scooters, and it has established a network of 310 dealers in Thailand, exporting to seven countries. **Malaysia: Modenas and the Local Market** Malaysian motorcycle manufacturer Modenas, established in 1995, has also achieved good sales locally. By 2007, the company had produced its millionth unit. Known for its scooters and light motorcycles, Modenas has independently developed and produced about 50 different motorcycle models. To expand its international footprint, Modenas has diversified its product range through partnerships with other motorcycle manufacturers. **Singapore: A Smaller but Ambitious Market** The electric motorcycle market in Singapore is relatively small, but brands like Scorpio Electric and ION Mobility are actively working to popularize electric vehicles. Scorpio Electric, founded in 2017, focuses on developing and producing high-quality, high-performance electric motorcycles. ION Mobility, established in 2019, produces smart, eco-friendly, and affordable electric vehicles, with Indonesia as its first market. Singapore-based electric two-wheeler company SLEEK EV, founded in January 2022, has launched smart electric vehicles in Thailand and Singapore, using funding to develop smart vehicle control units to enhance the user experience. **Chinese Companies Expanding Overseas: Competing with High Cost-Performance Ratios** In recent years, Chinese electric two-wheeler exports have been steadily increasing. Data shows that in 2021, China exported 22.9 million electric two-wheelers, a year-on-year increase of 27.7%. From January to July 2022, China’s electric two-wheeler exports reached 20.63 billion yuan, a year-on-year increase of over 9%. Southeast Asia, full of opportunities, is becoming a popular destination for Chinese electric two-wheeler manufacturers to expand abroad. Most electric motorcycles in Southeast Asia are imported from China. Chinese motorcycles first entered Southeast Asia in the 1990s, with “Chongqing-made” motorcycles selling well due to their high cost-performance ratio. Although Chinese motorcycles achieved some sales in the Southeast Asian market, they did not establish a strong brand presence compared to Japanese and Western motorcycle companies. However, in recent years, Chinese electric two-wheeler brands have been accelerating their overseas expansion, driven by favorable policies. The signing of the Regional Comprehensive Economic Partnership (RCEP) agreement by 15 countries, including the ten ASEAN countries, China, Japan, South Korea, Australia, and New Zealand, has reduced tariffs on two-wheeler exports to major Southeast Asian countries. Additionally, Chinese electric two-wheeler companies are leveraging the advantages of the Belt and Road Initiative to expand in the Southeast Asian market. Southeast Asian countries are hoping to attract foreign brands through subsidies to boost local manufacturing, which has indeed attracted the participation of leading Chinese electric motorcycle brands and emerging players. In the electric two-wheeler market, Chinese companies are attracting buyers with their high cost-performance ratios. Brands like Yadea, Aima, Tailg, Luyuan, Niu, Xiaodao, Xinri, Segway-Ninebot, and Gogoro are gradually expanding their influence in the Southeast Asian market through their well-established supply chains, continuous innovation in models, and improved cost-performance ratios. **Investment: Focusing on Manufacturers, Battery Swapping, and Second-Hand Vehicles** From 2018 to 2022, global micromobility investment, including

Electric Two-Wheelers Find Increasing Demand in Southeast Asia, the World’s Third-Largest Two-Wheeler Market** Since 2019, Southeast Asian countries, led by Indonesia, Thailand, and Vietnam, have introduced policies to curb the use of traditional fuel-powered motorcycles in response to carbon emissions and environmental pollution. This has accelerated the transition from gasoline to electric vehicles. Many companies have begun to ride the wave of these policies, launching new products tailored to the needs of the Southeast Asian market. The electric two-wheeler market is booming, attracting investment interest and new entrants. ### Southeast Asia’s Two-Wheeler Market: A High-Demand, Rapid-Growth Arena Generally speaking, two-wheelers include bicycles, electric two-wheelers, and fuel-powered motorcycles. Electric two-wheelers can be further divided into electric bicycles with pedal-assist, mopeds, e-scooters, and electric motorcycles. The difference between mopeds and e-scooters is minimal, with the latter typically having a slightly higher speed and weight. This article focuses on the electric two-wheeler and fuel-powered motorcycle markets in Southeast Asia. Globally, the cost-effectiveness and convenience of two-wheelers have made them a popular choice for daily transportation. Furthermore, as governments worldwide intensify efforts to limit carbon emissions and promote low-carbon lifestyles, international demand for electric two-wheelers is rising. McKinsey predicts that by 2029, the global two-wheeler market will have a compound annual growth rate of 8.7%, reaching approximately $218 billion. According to McKinsey’s research, the electrification rate of two-wheelers has remained below 5% due to various challenges, such as high purchase costs, the relatively low performance of internal combustion engine (ICE) variants, limited product options, and an underdeveloped charging ecosystem. However, with advancements in battery technology, enhanced power performance, the development of charging/swapping infrastructure, and lower costs, the adoption of electric two-wheelers is accelerating. Additionally, the growth of electric two-wheelers has benefited from government regulatory measures, such as fuel price influences and electric vehicle purchase subsidies, encouraging consumers to shift toward electric vehicles. For instance, in 2021, electric two-wheelers accounted for only about 2% of sales in ASEAN countries. However, McKinsey predicts that by 2030, 30% of two-wheelers worldwide will be electric. In Southeast Asia, due to the lack of public transportation infrastructure, the prevalence of densely populated cities, and the fact that urban short-distance travel usually ranges between 10-20 kilometers, motorcycles are the most popular mode of transportation. According to ASEANstats, there are currently about 250 million motorcycles in Southeast Asia. With a population of over 600 million, this means that there are 1.25 motorcycles for every three people in the region. Moreover, a large number of new two-wheelers are gradually entering Southeast Asian households every year. The Southeast Asian two-wheeler market reached a record peak of 15 million units in 2019, accounting for nearly 25% of the global market. According to Statista, in 2022, new motorcycle sales in Southeast Asia reached approximately 10.6 million units, making it the world’s third-largest market after China and India. In the first six months of this year, ASEAN motorcycle industry sales reached 7.5 million units, a 14.9% increase, making it the fastest-growing region globally. Statista also forecasts that the ASEAN motorcycle market will generate $26.41 billion in revenue this year. From 2023 to 2027, the compound annual growth rate for revenue is expected to be 6.01%, with the market size reaching $33.35 billion by 2027. The largest segment within this market is road motorcycles, with an estimated market size of $17.34 billion in 2023. While Southeast Asia’s motorcycle sales lead the world, the potential for electric motorcycles in the region is also significant. As of 2022, electric motorcycles accounted for less than 1% of the Southeast Asian market, leaving ample room for growth. With the push for “fuel to electric” policies, the Southeast Asian electric two-wheeler market is currently in its early stages and entering a period of rapid growth. A report from the International Renewable Energy Agency (IRENA) indicates that by 2025, approximately 20% of vehicles on Southeast Asian roads will be electric, including 59 million two- and three-wheelers and 8.9 million four-wheelers. ### Overview of Two-Wheeler Preferences and Market Opportunities in Southeast Asian Countries Southeast Asia stands out in two-wheeler sales, with Indonesia being the largest single market. Motorcycle sales in Southeast Asia are concentrated in Indonesia, Vietnam, and Thailand. Last year, motorcycle sales in these three countries ranked among the top three. As of the first half of this year, Indonesia’s two-wheeler sales grew by 41.5%, the most significant increase among ASEAN countries, followed by Vietnam, the Philippines, and Thailand, with Malaysia and Singapore ranking lower. Zhu Zhengyi, an Investment Professional at East Ventures, told 7:5 Degrees that overall, travel patterns in Southeast Asia are very similar, primarily focused on urban commuting and delivery services. In more dispersed regions outside major cities, there is a greater demand for electric two-wheelers with longer ranges, leading to higher expenditures. From an investment potential perspective, Zhu Zhengyi also believes that Indonesia, Vietnam, and Thailand, with their high sales volumes, are the three key markets to watch. The Philippines and Malaysia are also worth noting because the Philippines, outside Manila, has a more dispersed population, leading to higher demand for electric vehicles with long-range and large-capacity batteries. Meanwhile, Malaysia has higher purchasing power, and the local government and businesses are actively supporting the development of electric two-wheeler infrastructure. **Indonesia: Southeast Asia’s Largest Two-Wheeler Market** In densely populated, traffic-congested Indonesian cities, motorcycles have become the most effective mode of transportation. According to Raditya Wibowo, Co-Founder and CEO of Indonesian electric two-wheeler company MAKA Motors, motorcycles hold a special place in Indonesian households, with some users even parking them in their living rooms for security. “In some cases, the value of a motorcycle even surpasses that of a house,” he noted. Considering the affordability and flexibility of motorcycles for daily commuting, they best meet most users’ needs for daily travel and short-distance trips. Consequently, motorcycles with lower power and speed, particularly those under 125cc, are the most common in Indonesia. Regarding purchasing preferences, Statista’s research shows that consumers prefer to buy new vehicles over second-hand ones due to the

As Chinese electric two-wheeler brands like Yadea, TaiLing, Aima, and NIU focus their efforts on the Southeast Asian market, they are actively expanding their presence abroad and establishing local factories. This trend is driven by deep market insights and strategic considerations. ▲ Brands Expand into Southeast Asia, Creating a New Model for Globalization On August 12, 2024, TaiLing inaugurated its tenth global intelligent manufacturing base in Vietnam’s Binh Duong province. The first batch of “Made in Vietnam” TaiLing long-range electric scooters rolled off the production line, marking a significant milestone in the brand’s global strategy. TaiLing views Vietnam as a crucial market in its globalization efforts, aiming to transform the country into a benchmark for the global electric two-wheeler industry through localized investment and development. The company also plans to establish a technology center and production base in Thailand, promoting electric motorcycles in Southeast Asia to support the region’s transition to low-carbon transportation. In March 2024, Yadea held a ceremony to deliver the first vehicle from its Indonesian production and research facility. On May 13, Yadea laid the foundation for its Indonesian intelligent production and research base, the brand’s eighth globally. With an expected investment exceeding $150 million, this facility will cover 27 hectares and have an annual production capacity of 3 million units when completed in 2026. Yadea, which has exported to 100 countries and ranked as the global sales leader for seven consecutive years, is driving comprehensive international expansion through overseas bases, participation in international exhibitions, and building localized teams, making it a representative of “Chinese intelligence” on the global stage. Aima entered the “China-ASEAN New Energy Vehicle Production Base” in 2018, and its Indonesian production facility began operations in March 2023. In 2022, Aima’s exports to Southeast Asia increased by 154% year-on-year, with exports to Thailand rising by 174%. Other brands like NIU and Segway have either partnered with local distributors or established their own online and offline sales channels. Notably, cross-sector players like DJI, which recently entered the E-bike market, and Hellobike, which is expanding its shared electric vehicle services overseas, are also making waves in the global electric two-wheeler market, contributing to the success of Chinese brands abroad. ▲ Challenges of Localization for Foreign Brands The journey of global expansion is far from smooth, with potential pitfalls along the way. Uncertainties in the business environment, cultural and linguistic differences, varying legal regulations, and infrastructure challenges all pose significant obstacles. Setting up a factory abroad is just the first step in a long journey. In Southeast Asia, Japanese brands have long dominated the market, with Honda holding an 80% market share in Vietnam. Faced with such strong competition, how can Chinese electric two-wheeler companies successfully enter and establish themselves in these markets? Localization is undoubtedly a key differentiator. Sun Muchai, Senior Vice President of TaiLing Group, stated, “In the past, the ‘one size fits all’ approach, where a single distributor was selected in each country and provided with products at competitive prices, was sufficient. However, this approach is no longer viable.” Although Chinese electric two-wheeler companies began exploring overseas markets over a decade ago, only a few have successfully established themselves globally. Brands like Yadea and TaiLing have tailored their products to meet the unique characteristics of the Southeast Asian market. For instance, Yadea launched an electric motorcycle that accelerates from 0 to 100 km/h in just 3 seconds, outpacing any Japanese model, catering to enthusiasts who crave speed. TaiLing, on the other hand, developed models with enhanced climbing ability and extended range to suit the terrain and traffic conditions in Southeast Asia. Additionally, TaiLing introduced smart electric vehicles equipped with mobile applications that offer features like vehicle tracking and anti-theft alarms, providing tangible benefits to local consumers. Regardless of the industry, companies must not only “go out” but also “go in,” meaning they must fully embrace localization to achieve long-term success in international markets. Amid today’s wave of “going global,” the rise of many electric two-wheeler companies is just a small part of the bigger picture. These brands stand out because they dare to lead. Looking ahead, the future for brands like TaiLing, Yadea, and other electric two-wheeler manufacturers in Southeast Asia looks bright. With continued technological advancements and market expansion, these brands are poised to lead the industry, offering innovative and high-quality transportation products to Southeast Asian consumers. In the near future, electric two-wheelers may become a mainstream mode of transportation in the region, with brands like TaiLing, Yadea, Aima, and NIU shining brightly in this land of opportunity.

In today’s fast-paced world, urban dwellers face a daily struggle with traffic congestion, long commutes, and the frustration of delayed public transportation. If you’ve ever found yourself stuck in traffic for hours on a weekend getaway, or if you’ve experienced the stress of arriving late to work due to a traffic jam, you’re not alone. Many are also growing weary of the overcrowded subway rides that have become a staple of city life. Enter the electric two-wheeler: a lightweight, eco-friendly solution that offers a reprieve from these common urban challenges. Here’s why an electric bicycle or scooter might be the perfect answer to your commuting woes. 1. Beat the Traffic One of the most significant advantages of electric two-wheelers is their ability to navigate through traffic with ease. Unlike cars, which can become trapped in gridlock, electric bicycles and scooters can maneuver through tight spaces and use bike lanes, allowing you to reach your destination faster. This mobility ensures that you spend less time stuck in traffic and more time enjoying your day. 2. Environmentally Friendly Electric two-wheelers are a green alternative to traditional gasoline-powered vehicles. They produce zero emissions, helping to reduce your carbon footprint. As cities around the world increasingly prioritize sustainability, choosing an electric vehicle aligns with a broader commitment to protecting the environment. It’s not just about getting from point A to point B; it’s about doing so in a way that minimizes harm to the planet. 3. Cost-Effective In addition to being environmentally friendly, electric two-wheelers are also cost-effective. They require less maintenance than cars, and charging them is far cheaper than refueling a gasoline vehicle. Over time, the savings on fuel, maintenance, and parking can add up significantly, making electric two-wheelers an economical choice for many commuters. 4. Convenient and Accessible Electric two-wheelers offer unparalleled convenience. They are lightweight, easy to park, and can be stored in small spaces, making them ideal for urban living. Whether you’re heading to work, running errands, or exploring the city, an electric bike or scooter can simplify your journey. Plus, many models are foldable, allowing for easy storage at home or the office. 5. Health Benefits While electric two-wheelers do provide motorized assistance, they still encourage physical activity. Many electric bicycles allow you to pedal as much or as little as you like, offering a blend of exercise and ease. This flexibility means you can choose to exert more effort when you have the energy or rely on the motor when you need a break. Either way, you’re likely to be more active than if you were driving or taking the subway. 6. Avoid Public Transportation Crowds Public transportation, while essential, can often be overcrowded, especially during peak hours. The pandemic has further highlighted the downsides of packed buses and trains. An electric two-wheeler offers a private, personal mode of transportation that lets you avoid the crowds and the risks associated with close contact. It’s a healthier, more comfortable way to commute. Conclusion In summary, electric two-wheelers present a versatile, eco-friendly, and cost-effective solution to many of the challenges faced by urban commuters. Whether you’re looking to save time, reduce your environmental impact, or simply enjoy a more convenient and healthy mode of transportation, an electric bike or scooter can be the key to transforming your daily commute. As cities evolve and the demand for sustainable transportation grows, electric two-wheelers are set to become an increasingly popular choice for those seeking a better way to get around.

“In terms of electric mobility, China is a source of inspiration for many companies in Africa,” said Janosh Bisaso, an electric motorcycle manufacturer in Kampala, Uganda, when discussing Chinese-produced electric motorcycles and components. Bisaso runs an electric motorcycle business in Kampala that imports lithium batteries from China and assembles them locally into electric motorcycles. He told reporters that customers who purchase motorcycles can enjoy a battery-swapping service, allowing them to exchange depleted batteries for fully charged ones at replacement stations at any time. For customers, this battery-swapping model is cheaper than refueling traditional gasoline motorcycles. So far, Bisaso’s company has sold over 1,600 motorcycles and established more than 80 battery-swapping stations, deploying over 3,800 batteries within the swapping network. He expressed optimism, stating that as the number of customers continues to grow, the company plans to establish East Africa’s largest lithium battery assembly plant this year. Bisaso noted that both battery technology and electric vehicle technology from China are excellent, and the components that African enterprises currently cannot obtain locally during operations are mostly sourced from China. Uganda is just a microcosm of a larger trend. Increasingly, enterprises in various African countries are partnering with Chinese counterparts to tap into the vast market potential for electric motorcycles. Motorcycles hold a special significance in the “road culture” of African countries. Due to their flexibility, convenience, and relatively low cost, motorcycles are an important means of transportation for many residents in Africa, serving not only as private transportation but also as a crucial public transport option. With the rise of ride-hailing “boda-boda” services, the motorcycle market is poised for significant growth opportunities. Electric motorcycles offer advantages in cost and environmental impact over traditional gasoline-powered motorcycles, driving new changes in transportation across Africa. In Kenya, 27-year-old Moses Kimani serves as the marketing manager for Hanlin (Africa), a new energy company from China. He praised the electric motorcycle product “boda-boda” produced by his company, saying, “The start-up speed and acceleration of Chinese electric motorcycles are very strong, completely matching that of gasoline motorcycles. They are very suitable for our environment—flexible and efficient.” In a large warehouse on the outskirts of Nairobi, the team at electric motorcycle startup ARC Ride is busy processing hundreds of electric motorcycles and parts delivered from China. Although the company conducts research, assembly, and sales in Kenya, the main components are imported from China. Kenya boasts the largest “boda-boda” market in Africa, with around 5.2 million people involved in motorcycle transportation services. It is said locally that one in every ten Kenyans relies on motorcycles for their livelihood. As fuel prices have risen in recent years, the operational cost of electric motorcycles is now only one-tenth that of gasoline motorcycles per kilometer. A “boda-boda” rider can recoup the cost of purchasing an electric motorcycle in about a year. Data indicates that by 2027, the electric motorcycle market in Africa is expected to grow to $5.07 billion, becoming a leading industry in the region’s transition to sustainable transportation. The increasing market prospects are prompting many African enterprises to actively collaborate with Chinese companies to produce and sell electric motorcycles. From an environmental perspective, electric motorcycles align with the trend in many African countries that encourage electrification of transportation. Nations such as Kenya, Uganda, South Africa, Benin, and Rwanda are rolling out policies to promote electric mobility, creating a friendly environment for the adoption of electric motorcycles. Joyce Msuya, Deputy Executive Director of the United Nations Environment Programme, stated, “The growing popularity of electric motorcycles in African countries will help reduce air pollution, decrease greenhouse gas emissions, and create more job opportunities.” From the motorcycle manufacturing supply chain to battery and electrification technologies, the affordable products and solid technical experience of Chinese enterprises align with the actual needs of local businesses and the green transition trends in Africa, propelling the accelerated arrival of the “electric era” for motorcycles in the region.

In recent years, Chinese electric vehicle (EV) brands have emerged rapidly, creating a green wave in the global automotive market. However, just as Chinese automakers are gearing up to enter the European market, they have encountered a towering tariff barrier. Faced with the European Union’s import tariffs as high as 48%, how will Chinese car companies break through? What kind of game and challenges lie behind this tariff maze? The EU’s tariff policies have undoubtedly cast a shadow over the expansion of Chinese car companies in Europe. The high tariffs mean that the prices of Chinese electric vehicles in Europe will rise significantly, losing their price advantage and making it difficult to compete with local European brands. Despite this predicament, Chinese car companies have not chosen to retreat but have actively sought solutions to mitigate the impact of tariffs. ### “Indirect Strategies” – CKD Model to Avoid High Tariffs To circumvent the high tariffs on complete vehicle imports, Chinese car companies have adopted an “indirect strategy,” focusing on the CKD (Completely Knocked Down) model. For instance, Chery Automobile has partnered with Spain’s Ebro-EV Motors to produce the Omoda E5 model at a former Nissan factory near Barcelona. This factory will use the CKD model, shipping vehicle parts from China to Spain for assembly, effectively reducing tariff costs. Zhang Bojun, President of Chery Automobile Europe, stated, “We are determined to move forward with our launch team and advance our short-, medium-, and long-term operations in Europe.” He emphasized that Chery is committed to conducting research, manufacturing, and sales in Europe “to become a truly European company.” The European Commission is still studying how new tariffs will apply to joint ventures that have not participated in its anti-subsidy investigation. Although negotiations might avoid additional costs before the tariffs become permanent in November, China has already begun a retaliatory investigation into the EU’s alleged dumping of pork products. This is just one aspect of a broader global trade dispute. The United States imposes tariffs as high as 100% on Chinese EV imports due to disputes between the two countries in this industry, partly fueled by subsidies from Beijing. The EU has taken a softer stance, needing affordable electric cars to meet its 2035 target for phasing out the sale of fuel-powered vehicles. However, sales growth has been slow, affected by the government’s partial withdrawal of support. For example, the retail price of Volkswagen’s ID.3 is about 37,000 euros ($40,150), while BYD’s Dolphin hatchback is priced at around 33,000 euros. Although Chinese EV manufacturers’ market share in Europe is still below 10%, the region is one of the most profitable markets for companies like NIO and XPeng, which have shifted from rapid domestic expansion to capacity expansion. Chinese companies need to bypass European tariffs to avoid sacrificing profits or burdening customers. According to Bloomberg New Energy Finance, without countermeasures, SAIC’s MG4 EV’s estimated profit margin could drop from 25% to just 1%. If the company raises prices or if battery costs continue to fall—another area where Chinese carmakers lead their European competitors—some of these losses could be avoided. ### Local Production: Reducing Costs and Enhancing Brand Recognition In addition to adopting the CKD model, some Chinese car companies plan to establish their own production bases in Europe to achieve localized production. BYD has announced plans to build its factories in Hungary and Turkey. Volvo Cars, owned by China’s Geely Automobile, has accelerated its plans to produce its new EX30 model in Ghent, Belgium, in addition to its plants in China. Localized production can not only help Chinese car companies further reduce costs and avoid tariff barriers but, more importantly, can enhance their brand recognition in the European market, laying the foundation for long-term development. ### The Game: A Microcosm of Sino-European Trade Friction The tariff barriers faced by Chinese car companies in Europe are, in fact, a microcosm of Sino-European trade friction. In recent years, with the rapid development of China’s economy, the influence of Chinese manufacturing in the global market has been growing, causing concern and vigilance in some Western countries. The EU’s high tariffs on Chinese EVs are partly to protect the local automotive industry and partly out of concern over China’s rise. However, the EU’s tariff policies are not without costs. The EU needs affordable electric vehicles to achieve its ambitious emission reduction goals, including phasing out the sale of fuel-powered vehicles by 2035. However, the high tariffs increase the prices of electric vehicles, hindering their adoption. In addition, China has launched a retaliatory investigation into the EU’s alleged dumping of pork products, further intensifying trade tensions between China and the EU. ### Opportunities and Challenges: Chinese Automakers in the European Market For Chinese automakers, entering the European market presents both opportunities and challenges. Europe is one of the largest EV markets globally, with tremendous growth potential. The EU’s emission reduction goals and the rising environmental awareness among consumers will drive the rapid growth of the electric vehicle market. For Chinese car companies, this is an unparalleled opportunity. However, challenges remain, particularly in brand recognition and market competition. The biggest challenge for Chinese car companies in the European market is the low brand recognition. Compared to established European brands, Chinese brands need to continuously improve in technology, quality, and service. Moreover, the European market is highly competitive. Besides local brands, there are also competitors from the United States, Japan, and South Korea. For Chinese car companies to gain a foothold in the European market, they must continuously enhance product competitiveness and build a more attractive brand image. Despite the many challenges, Chinese automakers are determined to enter the European market. As Chinese car companies continue to increase investment in technology research and development, improve product quality, and build brand image, Chinese electric vehicles will gradually gain recognition from European consumers and occupy a more important position in the global automotive market. As management guru Peter Drucker said, “The success of an enterprise is not in its size but in its

Under the Push of Carbon Emission Reduction Policies, the Global Two-Wheeler Industry is Experiencing a “Battery-Swap Wave,” with the Market for Electric Two-Wheelers Rapidly Expanding.** According to Nanjing Customs statistics, in the first half of this year, Jiangsu exported 1.272 million electric motorcycles and bicycles, marking a year-on-year growth of 18.1%. **”Jiangsu-Made” Electric Motorcycles Zip through German Streets** Jiangsu is home to numerous well-known electric vehicle manufacturers, many of which have set their sights on the vast potential of overseas markets. By establishing overseas factories, forming strategic partnerships, upgrading technology, and providing fast logistics responses, these companies have quickly integrated into local markets, offering differentiated products. In the heat of summer, the warehouse of Nanjing Sanye Golden Eagle Motorcycle Co., Ltd. is abuzz as 200 electric motorcycles are being meticulously packed. These motorcycles are bound for Germany, where they will soon be seen zipping through the streets, ridden by local food delivery riders. As the company’s overseas business flourishes, it has developed products like “delivery electric motorcycles” with long-range capabilities and robust rear delivery boxes. Later, in response to the growing demand for electric motorcycle rentals in the overseas tourism market, they introduced “shared electric motorcycles” that are lightweight, durable, and equipped with easily detachable and replaceable parts. The company’s electric two-wheelers are now sold in 64 countries and regions, including France and the UK, with total exports of vehicles and parts reaching 148 million RMB in the first half of this year. “We’ve established overseas service centers for major markets and customers, further optimizing the service chain, which has been widely praised by overseas consumers,” said Xie Xiangjing, the company’s sales director. Today, the electric two-wheeler industry is evolving toward high-end, intelligent, and networked development. Changzhou Hongbang New Energy Technology Co., Ltd., a specialized and innovative private enterprise, has independently developed new electric-assist two-wheelers, scooters, and industry-leading electric control systems. These advancements have resulted in a range of electric vehicles that offer 1.9 times the range of standard motors under identical battery, load, and road conditions. The company exported goods worth 39.92 million RMB in the first half of the year, a 16% year-on-year increase. **Veterans and Newcomers Strive Together** Established companies are finding new vitality by steadily progressing. Wuxi Zhongxing Electric Vehicle Trading Co., Ltd. has taken the lead in online retail, launching E-bike products on platforms like Amazon, targeting the European market where cycling culture is prevalent. These products have quickly become the company’s star performers in cross-border sales. Cross-border e-commerce, as a new form of foreign trade, boasts resilience and vitality. For electric vehicle companies, selling directly through cross-border e-commerce platforms is simpler and less costly compared to working with dealers. In the first five months of this year, Wuxi Zhongxing Electric Vehicle Trading Co., Ltd.’s cross-border e-commerce exports reached nearly 18 million RMB, a year-on-year increase of 6.7 times. New companies are also shifting gears towards “intelligent manufacturing,” aiming to tap into the mid-to-high-end market. At Changzhou Fujang Vehicle Co., Ltd., a continuous production line operates, with overhead arms transporting bike frames to workstations for quick assembly. The company specializes in developing and manufacturing electric mountain bikes, which are in growing demand in international markets. “We have a distinct advantage in R&D and manufacturing, and our overseas sales are steadily growing. We expect to achieve sales of over 30 million RMB this year,” said Xu Peng, the company’s customs manager. During the sweltering summer days, workers at Jiangsu Taimo Vehicle Co., Ltd. in Zhenjiang are busy assembling new electric bicycles on the production line and sending them to the laboratory for testing. “From January to May this year, the company exported 5,472 electric two-wheelers, a 30% increase year-on-year. We are considering expanding our production capacity to increase our overseas market share,” said Wang Xiaohong, the company’s foreign trade business director. **Expanding the “Circle of Friends” Brings New Opportunities** Wuxi, known as the “Hometown of Chinese Electric Vehicles,” is home to many established companies. Their traditional electric motorcycles and light electric motorcycles are popular in Southeast Asia, offering strong power and long-range capabilities. Since the implementation of the RCEP, with ASEAN import tariffs continuing to decrease, Chinese-made electric two-wheelers are seizing new opportunities. “Since the RCEP came into effect in Indonesia last year, the tariff rate on our electric vehicle exports to Indonesia has been reduced from 50% to 26%. By the end of May this year, the total value of our exports to Indonesia was 120 million RMB, with cumulative tariff savings of over 20 million RMB,” said Li Yanhong, head of Wuxi Yadea Import and Export Co., Ltd., calculating the benefits of joining the RCEP “circle of friends.” “Besides enjoying tariff reductions, the drop in tariffs has also boosted sales. By leveraging both the RCEP and the China-ASEAN Free Trade Agreement, our company’s international market competitiveness has significantly improved.” Electric vehicles require long after-sales service periods, prompting many companies to open offline dealer stores overseas, increasing demand for the export of parts like plastic components and frames. To help two-wheeler companies “go global,” customs authorities have actively organized RCEP policy seminars, providing online and offline support, targeted policy explanations, and tailored optimal benefit plans through the “FTA Smart Application Platform.” They offer comprehensive support, including free trade agreement policy consultations and issue resolution, ensuring companies fully enjoy policy benefits. On July 29th, the workshop of Jiangsu Enwa Technology Co., Ltd. in Wuxi was bustling as workers rushed to fulfill overseas orders. The company recently successfully applied for a China-ASEAN Free Trade Agreement certificate of origin with Wuxi Customs. “We export a wide range of products with complex classifications, and export destinations vary. Thanks to the precise assistance from customs, we can now easily navigate multiple free trade agreements to find and choose the best tariff reduction scheme,” said Kang Dingwu, the company’s chairman. “In the first half of this year, we applied for 328 certificates of origin, with a total value of over 22.7852 million USD.” (Song Xiaohua) Source: Xinhua Daily

Cai Jihua: A Chinese Entrepreneur in Indonesia Selling Electric Motorcycles and Competing with Honda** Cai Jihua is an ethnic Chinese entrepreneur who came to China in 2001 to do business. His first venture was in mobile phone trade, exporting products to Indonesia. After accumulating wealth and experience, Cai opened his own processing factory to export mobile phone batteries, chargers, and other related products, with the market still focused on Indonesia. At the peak of power bank profits, Cai also engaged in the power bank business for a year in 2013. However, the industry soon fell into a vicious cycle of burning cash, raising funds, and price wars. The entry of Xiaomi shattered the price bottom line for power banks. Cai pivoted and, along with a few friends, founded Laidian Technology in 2014 to focus on shared power banks. Cai took charge of all hardware manufacturing for Laidian. At its peak, the company generated over a million yuan in daily revenue. In 2018, Cai’s enthusiasm for battery manufacturing shifted towards electric two-wheelers. In 2019, he exited Laidian and established SWAP in Indonesia, selling two types of products: electric motorcycles and battery swapping solutions. The former operates under a separate brand called SMOOT, while the latter involves setting up battery swapping stations in Indonesia to provide shared batteries. This approach differs significantly from most electric motorcycle brands that only sell vehicles and use direct charging. “The core of the brand is understanding your market, rather than jumping into a business everyone else is doing,” said Cai. “Our competitor is Honda’s gasoline motorcycles.” In his second entrepreneurial venture, Cai once again found himself in a leading position. SWAP became the first brand in Indonesia to successfully implement a battery swapping model, with over 1,500 battery swap stations established, accounting for 70% of local battery swapping cabinets. In the electric motorcycle market, SWAP’s sales account for more than 30%. With internet giants like Grab and Lazada shifting their delivery services from fuel to electric, delivery personnel are now using SWAP’s electric motorcycles to deliver goods, with the partnership logo prominently displayed on the motorcycles, effectively promoting the brand throughout Indonesia. **Identifying the Right Market Approach** Initially, Cai considered two plans: expanding the shared power bank business into Indonesia and implementing a battery swapping model in the Chinese electric vehicle market. The first plan faced a significant barrier: Indonesia’s online payment system does not support deposit-free transactions, making it difficult to promote shared power banks. In China, the shared power bank model only exploded after the introduction of deposit-free policies. The second plan proved unfeasible because the battery swapping model in China predominantly targets B-end customers, such as food delivery riders and couriers, who typically opt for monthly subscription packages costing around 200-300 yuan. However, for C-end customers, using electric vehicles is not a necessity, with short travel distances and infrequent charging, making direct charging a more suitable option. Cai noted that the critical issue in China is that car manufacturers and battery producers operate independently without communication protocols, making it difficult to access battery usage data. In Indonesia, however, the situation is entirely different. Motorcycles are a primary mode of transportation in Indonesia, especially in a country that has the highest motorcycle sales in Southeast Asia. In many Indonesian households, motorcycles hold a unique status, with some users parking them in their living rooms for security. In certain cases, a motorcycle’s value can even exceed that of a house. The development of electric motorcycles has been relatively slow. When Cai returned to Indonesia to establish SWAP, electric vehicles were still in their early stages, with few startups in the market. Consumers were primarily concerned about limited range, which deterred them from longer trips. Cai and his team conducted research indicating that the average daily riding distance in Indonesia is about 50 kilometers, taking roughly 75 minutes. The market prompted Cai to consider whether the mature electric four-wheeler and two-wheeler markets, along with comprehensive policies for transitioning from fuel to electricity in China, could also apply to Indonesia. “Electrification is definitely a global trend,” Cai asserted. He estimated that with a population of 280 million, Indonesia’s acceptance of electric motorcycles starts from zero, presenting a significant opportunity. Xu Lejia, founding partner of Huoshui Capital, observed that “Indonesia will have its own role and status in the future revolution of global battery manufacturing.” He noted interest in Indonesia’s new energy market as early as 2019 and shifted from uncertainty to certainty by the second half of 2020. As various domestic new energy companies began discussing opportunities to establish subsidiaries in Indonesia, Xu Lejia resumed his focus on the Indonesian new energy market, noting that electric two-wheelers represent a larger market with lower barriers than four-wheelers. Indonesia is well-suited for electric motorcycles due to its abundant natural resources, being the world’s largest producer of nickel, with reserves totaling 21 million tons, 70% of which are suitable for battery production. Cai’s choice of the battery swapping model is not a new avenue; two local companies had attempted it before but failed. “They simply brought a few products from China to launch at a press conference and then disappeared,” Cai said. The battery swapping model requires heavy asset operation and higher demands on infrastructure, teams, and technology. Direct charging remains mainstream in Indonesia. However, Cai recognized the compelling convenience of the battery swapping model, which “reduces battery wear costs and time costs.” In Indonesia, standard charging power is 500-600 watts, and most households have a supply of 900 watts. Fully charging a high-power electric motorcycle takes six hours and can travel at least 100 kilometers. “With battery swapping, it takes less than a minute,” Cai noted. While there are reference companies in the market, Xu Lejia’s early interest was in the Taiwanese brand Gogoro, which went public in the U.S. in 2021. He observed that Gogoro had failed to expand beyond Taiwan due to an uncompetitive supply chain and low product cost-effectiveness. Thus, he concluded that the battery