Electric Two-wheelers Gain Popularity in Asia

Thanks to their fuel efficiency, ease of use in congested traffic, and relatively low ownership and operating costs, two-wheeled vehicles including scooters, motorcycles, and bicycles are a very popular mode of transport in Asia, especially in China, Taiwan, India, and most of the Association of Southeast Asian Nations (ASEAN) countries.

The growth of the overall market for these vehicles within the Asia-Pacific region is bolstering the expansion of the electric two-wheel vehicle industry, thanks especially to rapid urbanization and rising household incomes.

According to a recent report from Pike Research, a market research firm, annual sales of electric two-wheelers will reach 65.5 million units in the Asia-Pacific region in 2018, resulting in a cumulative total of almost 382 million units sold from 2012 to 2018. Close to 92% of these sales will be in China, where annual sales will reach 60.2 million in 2018, Pike Research predicts.

"Growing economic prosperity is creating a greater number of middle-and-high-income consumers, which in turn is contributing to the growth of the electric two-wheel vehicle market in the region," says senior analyst Andy Bae. "In addition, the total cost of ownership of e-motorcycles and e-scooters remains low enough that consumers can see payback on the vehicle within a year or two of purchase. That means the market for electric two-wheel vehicles is likely to remain strong in regions with high economic growth rates."

In the Asia-Pacific, two main types of battery are used in the e-motorcycle and e-scooter markets: lead-acid and lithium ion (Li-ion). Lead-acid batteries will continue to be the primary technology used in the Asia-Pacific, particularly China, while Li-ion batteries will account for a smaller (but growing) share of the technology used in e-scooters and e-motorcycles, Pike Research believes.

Global E-Bike Sales

Electric bicycles have been the most popular category of electric vehicles for many years. Driven by intensifying urbanization, the increasing use of bicycles and other two-wheeled vehicles for everyday commuting, and the rise of new market entrants and more mature products, the market for e-bikes has become well-established in some areas, particularly the Asia-Pacific and Europe.

According to a new report from Navigant Research, worldwide sales of e-bikes will grow slowly but steadily through the remainder of this decade, increasing from 30.6 million units in 2013 to 37.9 million units in 2020.

"In many cities, the streets are so clogged with traffic that they are virtually unnavigable by cars, and e-bikes are seen as an increasingly viable option for urban mobility," says Dave Hurst, principal research analyst with Navigant Research. "The utilization of high-quality, affordable lithium ion batteries, among other factors, is helping open this market to people outside the normal e-bicycle demographic. Younger riders are more frequently turning to e-bicycles in countries in North America and Western Europe."

While China accounts for the vast majority of e-bicycle sales, many Chinese cities have either imposed bans on e-bicycles or are considering doing so because of increasing accidents and bicycle congestion. Navigant Research believes that bans will either remain in place or be imposed in parts of several major cities, including Beijing, Shanghai, and Shenzhen.