two-wheeled electric vehicle industry is Booming!
In the past decade, the most significant change in the two-wheeled electric vehicle industry has undoubtedly been the introduction and implementation of the new national standard (New GB). This standard, released in 2018 and officially enforced on April 15, 2019, clearly defined the upper limits for weight, height, and speed of electric bicycles. This change not only promoted the widespread adoption of lithium batteries but also accelerated the trend towards higher-end products in the electric bicycle market. As we enter 2024, with the five-year term of the New GB coming to an end and the replacement transition period for electric bicycles in various regions wrapping up, the electric bicycle industry, which boasts a stock market of 420 million units nationwide, is gradually shifting from its previous “wild growth” phase to a period of “refined cultivation.” The industry’s new challenges involve further product intelligence and the diversification of products derived from existing technological capabilities. Declining Sales and Industry Polarization According to data from Global Electric Vehicle Network, starting in 2019, influenced by the policy-driven upgrade cycle under the New GB, the two-wheeled electric vehicle industry experienced rapid growth, rising from 36.8 million units annually to 60.07 million units in 2022. However, with the end of the policy’s benefit period and the impact of the economic situation, sales of two-wheeled electric vehicles in China fell to 55 million units in 2023. Although still higher than in 2021 and prior years, the slowing growth trend is evident. Traditionally, China’s two-wheeled electric vehicle market can be divided into “traditional giants,” “new forces,” and other manufacturers. The traditional giants, including Yadea, Aima, and Tailg, dominate the vast Chinese market with extensive channels and relatively low prices. These three brands, each with annual sales exceeding 5 million units, are collectively referred to as “YAT” (Yadea, Aima, Tailg), akin to the BBA (BMW, Benz, Audi) in the automotive industry. The new forces, on the other hand, are young brands focusing on intelligence, high-tech, and high average transaction prices, including Segway-Ninebot, Niu Technologies, and ZEEKR, which stems from traditional motorcycle company Chunfeng Power. Recently, Yadea Holdings, Aima Technology from the “traditional giants,” and Segway-Ninebot, Niu Technologies from the “new forces,” have successively released their 2023 financial reports, offering insight into new industry trends. In terms of scale, Yadea, Aima, Segway-Ninebot, and Niu Technologies reported revenues of 34.763 billion yuan, 21.036 billion yuan, 10.222 billion yuan, and 2.6518 billion yuan, respectively, in 2023, with growth rates of 11.9%, 1.12%, 0.97%, and -16.3%, respectively. In terms of profit, Yadea earned 2.64 billion yuan, a 22.2% year-on-year increase; Aima earned 1.881 billion yuan, a 0.41% increase; Segway-Ninebot earned 598 million yuan, a 32.5% increase; while Niu Technologies faced a net loss of 130.2 million yuan, up from a net loss of 37.1 million yuan in the same period last year. It is noteworthy that as the benefits of the New GB gradually diminish, revenue growth in the two-wheeled electric vehicle industry is slowing. For example, Yadea’s revenue growth rates, which were as high as 62% and 39% in 2020 and 2021, respectively, had dropped to 15.2% and 22.2% by 2022 and 2023. For Segway-Ninebot and Niu Technologies, which emphasize technology and intelligence, the current performance is mixed. Niu Technologies is under significant revenue and profit pressure, while Segway-Ninebot is thriving. According to official reports, Segway-Ninebot’s sales in the two-wheeled electric vehicle market have entered the top four annually and are expected to enter the top three in 2024, while Niu Technologies seems to be lagging. Diversification and High-End Focus In response to the diminishing benefits, the two-wheeled electric vehicle industry’s strategy is to focus on high-end products and business diversification. Among the many two-wheeled electric vehicle companies, Segway-Ninebot is undoubtedly the most proactive. Currently, its electric two-wheelers account for only about 40% of its revenue. The remaining 60% comes from products such as electric balance scooters, electric skateboards, all-terrain vehicles, and service robots. Titan Media App learned from Segway-Ninebot’s founder and chairman, Gao Lufeng, that as early as 2015, the company foresaw that electric scooters would partially replace traditional bicycles and become one of the most mainstream short-distance transportation tools. Following this, Segway-Ninebot acquired Segway, the world’s leading brand in this field at the time, representing a classic case of a “snake swallowing an elephant.” Financial reports show that in 2023, Segway-Ninebot’s electric balance scooter and electric skateboard business generated 3.48 billion yuan in revenue, its second-largest income source, with a gross profit margin of 29.45%. In addition to product technology, this acquisition has had a long-lasting impact on the brand level. Since Segway had been operating in the European and American markets for many years, after the acquisition, Segway-Ninebot naturally continued to use the brand in these markets. Xu Peng, Secretary of the Board at Segway-Ninebot, told Titan Media App that due to this early acquisition, the company’s marketing and promotion in the European and American markets, such as entering major KA retail channels, became easier. Unlike other companies going global, Segway-Ninebot adopts different operating strategies depending on the country or region, rather than merely handing over goods to distributors. In addition, Segway-Ninebot’s robot business generated 252 million yuan in revenue in 2023, a year-on-year increase of over 125.30%. Its Navimow smart lawn mower, targeting overseas markets, has entered more than 30 countries or regions worldwide, becoming the world’s first wireless lawn mower brand with over 30,000 activated users. Compared to traditional lawn mowers, this product does not require professional personnel to pre-lay boundaries, and users can complete the setup in just half an hour. For European and American users, hiring a gardener to mow the lawn typically costs around $400-500 per time, with four sessions a year. Segway-Ninebot’s lawn mower is priced at around $1,000, offering a clear cost advantage. The company stated that due to its shared platform, many of the lawn mower’s technologies can be used internally, significantly reducing development costs. For 2024, Segway-Ninebot aims to sell 100,000 lawn mowers. It can be said that as
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