Electric bike expertise

Why do we say that China’s overseas electric bike market has a promising future?

Two wheeled vehicles are the best tool for residents to travel short distances, and can be divided into three categories: bicycles, two wheeled electric vehicles, and motorcycles. The rugged terrain with many mountains and relatively low per capita income have made motorcycles the main mode of transportation for Southeast Asian residents, making Southeast Asia the second largest motorcycle market in the world after China, with sales exceeding 12 million units in 2022.

In 2019, the proportion of registered two wheeled motorcycles in India accounted for 75% of the total number of registered vehicles, while in 2020, Cambodia, Indonesia, Laos, and Myanmar accounted for over 70% of their total number of motor vehicles.

The trend of “replacing oil with electricity” will drive the development of electric vehicles through policies.

Carbon neutrality is becoming a consensus among all countries, and Southeast Asian countries are beginning to limit fuel and replace electricity. Indonesia, Thailand, Vietnam, India and other countries are vigorously promoting the development of their own industrial chains. However, due to the imperfect development of these countries and their dependence on imports for major components, Chinese two wheeled vehicle companies will have great potential in the Southeast Asian market.

1.Electric two wheeled vehicles have low carbon emissions and high cost efficiency

India and Southeast Asia are similar to China from 2000 to 2010. While urbanization is expanding, road widening is not timely, public transportation facilities are insufficient, and per capita income is low. Urban travel has become an urgent challenge for every urban resident, which is also the reason why motorcycles are selling well.

But under the premise of carbon neutrality, electric two wheeled vehicles have entered consumers’ view as alternative options. Low carbon dioxide emissions from electricity, with advantages such as low noise and wide energy sources, and a more intelligent experience for high-end electric two wheeled vehicles.

In terms of performance, the performance gap between electric motorcycle and fuel motorcycle is narrowing, and there may be some shortcomings in extreme environments, but urban road traffic is not inferior.

With reference to the rapid development of China’s electric two wheeled vehicle industry after the “anti friction decree”, there is a considerable market for two wheeled vehicles in Southeast Asia and India, where the “oil to electricity” market is widely available.

2.History can be traced, and China’s electric two wheeled vehicles are expected to replicate the glory of history

China has developed into the world’s largest exporter of motorcycles, with motorcycle exports accounting for 33% and 35% respectively from 2020 to 2021. And China’s electric two wheeled vehicles are expected to replicate the trend of bicycle and motorcycle export development, seize foreign markets, and undertake global demand.

According to 2022 statistical data, the sales of motorcycles in the six Southeast Asian countries were 12.27 million, mainly concentrated in Vietnam, Thailand, and Indonesia. In 2022, the sales were 3 million, 1.79 million, and 5.22 million, respectively, accounting for 24%, 15%, and 43% of the sales in Southeast Asia.

When such a huge stock market suddenly faces a wave of “electricity exchange” driven by national policies, it will naturally stimulate considerable demand.

In terms of policy, Vietnam implements the 2030 motorcycle ban, and Indonesia and Thailand provide subsidies of over 3000 yuan per vehicle. In August 2022, the Thai Cabinet approved a subsidy of 2.923 billion Thai baht (approximately 585 million RMB) for electric motorcycles and electric vehicles, with a subsidy of 18000 Thai baht (approximately 3600 RMB) for electric motorcycles and a 1% consumption tax discount; The Indonesian government will allocate 170 million Indonesian rupiah in 2023, with a subsidy of 7 million Indonesian rupiah (approximately 3165 RMB) per electric motorcycle starting from March.

China’s leading electric two wheeled vehicle enterprises have been deeply cultivated in China for many years, and have cultivated and formed a complete supply chain system and channel barriers, with obvious competitive advantages.

At present, some companies have taken the lead in setting up factories in Southeast Asia and reached consensus with channels. With the continuous expansion of products and channels, coupled with subsidies from Indonesia and Thailand, sales are expected to grow rapidly.

In terms of profitability, it is more optimistic: the prices of two wheeled bicycles in Southeast Asia are higher than those of electric bicycles in China, and the profit margin of bicycles is expected to exceed the domestic level. In Vietnam, the terminal price of a leading brand is about 6000 yuan, much higher than that of domestic ASP. Southeast Asia has a lot of rain and high product quality requirements, with ASP almost twice that of China.

With the implementation of policies in Southeast Asian countries, China’s electric vehicle industry is bound to replicate or even surpass the export miracle of the motorcycle industry back then.


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