According to a report on the website of the British "Economist" magazine on July 31, electric bicycles will not replace cars, but sales are growing rapidly, especially in Europe. Electric bicycles are even opening up a saturated bicycle market, such as the Netherlands, which has 1.3 bicycles per capita. The consulting firm Deloitte and Touche last year estimated that the number of electric bicycles in the world was 200 million and will reach 300 million by 2023.
According to the report, facts may prove that Deloitte has underestimated, because commuters worried about the new crown virus are avoiding public transportation, and some cities are expanding bicycle lanes. In March and April this year, sales of electric bicycles stagnated due to unstable supply chains and store closures. However, with the lifting of the ban and control measures, sales have turned into rapid growth. Europe’s largest bicycle manufacturer Axel Bicycle Company’s revenue in June increased 53% from a year ago, thanks in large part to electric bicycles.
In the British high-end folding bicycle manufacturer Brompton's annual sales of 42.5 million pounds, 10% comes from electric bicycles. The company hopes to eventually increase this ratio to 40%. Wanmov Bicycle Company raised $13.5 million from investors in May of this year. It bills itself as the Tesla of the electric bicycle industry. Like this electric car manufacturer, Wanmov also designs its own parts, engines and software instead of relying on ready-made spare parts supplies.
The rate of demand growth has exceeded the manufacturers' affordability, leading to long-term backlogs and high prices. The starting price of an electric bicycle is about $1,000. Giant Machinery Industry Co., Ltd. said that the gross profit margin of its electric bicycles is about 25%, which is higher than the average of 21%. Wanmov’s electric bikes cost as much as $2,000.