🛵Two-Wheeling in China
Is "two wheels" better than "four wheels" for China's future urban transportation?
Hi again! Last month, I spoke with many EV players in China, including those from electric bikes and scooters. It seems that many of them are doing exceptionally well on the exporting side. While e-scooters are often seen as a less advanced vehicle, they seem to be reinventing urban transportation. Let's take a deeper look. 🏍
Why choose between saving the planet and cruising in style when you can have both with an e-scooter? Emitting 50% less CO2 than an EV, it's the eco-friendly ride that won't cramp your cool factor. 🛵
Electric scooter took over the bustling streets of Chinese cities, transformed the transportation landscape for millions of people.
Key points:
🛵Electric scooter (2&3 wheeler) are the most widely adopted EVs in the world, with 42% of are EVs (5x more than passenger cars)
🥇China is the global leader in electric 2 / 3 wheeler with ~50% global market share (5x more than 2nd country)
📦Delivery, and e-commerce promoted the rapid development of electric scooter industry.
🌿E-scooter is the most environmentally friendly transportation model, an EV Car emits 2x more CO2.
👩⚖️ Chinese government policy - 2010 “new energy vehicle’ program encouraged the development and adoption of electric scooter & cars.
Introduction
The demand for electric scooters in China is more significant than ever before as consumers, especially urban commuters, look for practical, affordable, and eco-friendly ways of getting around.
Along with the rise in middle class, government is eager to reduce air pollution and traffic congestion supporting the growing popularity of electric scooters as a vital ingredient that will help to create greener and smarter cities.
Why Are Electric Scooters So Popular in China?
The emergence of new industries such as delivery, e-commerce, and intelligent technology has promoted the rapid development of the electric bicycle industry.
China emerged as the dominant global force in the electric 2/3 wheeler market, with ~50% global market share. Vietnam in 2nd place with market share of less than 10%.
There are several reasons for the rapid growth of the electric scooter market in China. These include:
Rising incomes: As incomes have risen in China, so does the affordability for the relatively low cost of e-scooters.
Ballooning urban populations: China's urban population is growing rapidly, putting a strain on traditional modes of transportation. E-scooters are a convenient and affordable way to get around in crowded cities.
Increasing costs of car ownership: The cost of owning a car in China is rising, making e-scooters a more attractive option for many.
Traffic congestion and limited parking: Electric scooters are a good solution for these problems, as they are small and easy to maneuver. (Those who lived in Hangzhou would understand).
Government policy: The Chinese government is actively promoting the use of e-scooters to reduce air pollution and traffic congestion. This has helped to boost the popularity of electric scooters.
The Impact of Electric Scooters on China
E-scooter produces the least CO2 emission among various transportation types. 50% less than an EV car!
The rise of electric scooters has had a significant environmental impact on China:
Reduced air pollution: E-scooters produce zero emissions, which helps to reduce air pollution in cities.
Improved public health: E-scooters are a healthy alternative to cars and motorcycles as they keep the air cleaner.
Future of Electric Scooters in China
China's electric scooter market reached USD 20 billion in 2018. As of Jan-Aug 2021, the industry has been growing at 24% year-on-year.
The future of electric scooters in China is bright.
While electric scooter industry is growing rapidly in China, there are a number of challenges that the industry faces. These include:
Safety concerns: There have been a number of reports of electric scooter accidents, raising safety concerns.
Lack of regulation: The electric scooter industry is currently unregulated in China, which could lead to problems such as counterfeit products and unsafe riding practices.
Lack of infrastructure: China lacks the necessary infrastructure to support the widespread use of electric scooters, such as charging stations and designated parking areas. (Electric scooter took over most of the bike lane in Shanghai, leaving people with limited access for cycling.)
These challenges must be addressed if the electric scooter industry is to reach its full potential in China.
However, the overall outlook for the industry is positive, and electric scooters are poised to play a major role in the future of transportation in China.
Additional Facts on China E-Bike/E-Scooter
In 1995, China's first lightweight electric vehicle was born. Since then, electric scooters have become the main short-distance transportation method in the country.
In 2019 the Chinese government released new and more integrated licensing standards for e-scooters including requirements on batteries, speed, performance etc.
According to data, Yadea and Aima accounted for 44.7% of the market share in 2021, while Tailing's market share was less than 15%. Currently, the electric vehicle industry is in the process of industry consolidation.
On the leading Chinese video platform, Bilibili.com, safety issues and performance analysis are the most discussed topics and possibly implications of great concern on the safety hazards and irresponsible use of many brands of e-scooters.
That’s a wrap for this week’s newsletter. Thank you for tuning in this week. See you next week! 😘