China’s e-Bike Production Slows Down
AMSTERDAM, the Netherlands – The Chinese e-bike manufacturers are entering into a period of only limited growth. The joint output of the country’s e-bike industry increased that year by only 4.8% to 30.96 million units.
In 2010 the Chinese e-bike industry was still booming with a third more units produced compared to 2009. The slowed down growth in 2011 continued in 2012. These and other statistics are presented in the “Research on China’s Electric Scooter Industry, 2012-2017” and “China Electric Bicycle Industry Report, 2012-2015”.
According to these reports, the declining growth rates on China’s e-bike market are the result of the rising price of raw materials like lead-acid batteries, market saturation and legislation of Chinese government bodies.
Amid the overall industry downturn, the strong get stronger and the weak fade away, with the acceleration of industry consolidation. Large size manufacturers like Yadea, AIMA and Xinri have expanded their market share. A large number of small-sized firms see the squeezed market space and plummeting market share and may face merger or bankruptcy.
According to both reports the industry as a whole embraces the opportunity for development, though the majority of enterprises encounter a crisis. The quality of components like batteries and motors need to be improved, and the energy-saving and environment-friendly features of Chinese e-bike products wait to be enhanced.
According to the reports; once these problems are addressed, the enterprises will rid themselves of the intense homogeneous competition, enhance their product profitability and effectively explore the international market. The growth of the industry is however hampered by the uncertainty of domestic industrial policy and imperfect management system. As the State improves the management mechanism of the electric bicycle and issues new standards for product quality, the Chinese e-bike industry is expected to enjoy a huge development.