The e-bike market adoption rate in India soared by 39%, from 4.05% in 2022 to 5.63% in May this year, according to government data.
Notably, states including Goa, Kerala, Karnataka, and Maharashtra, alongside 6 others, surpassed the national average of 5.63% adoption rate, with Goa topping the list at 17.2%, according to registration data from Vahan, a central government vehicle portal.
The top 4 states exceeded a 10% market growth rate, a significant jump from the 1% recorded in 2019. India has set a target for electric vehicles (EVs) to constitute 80% of its two-wheeled market by 2030. In addition to central government subsidies, various states have implemented favourable policies including tax benefits, efficient scrappage programmes, lower power tariffs, and expanded charging infrastructure, contributing to the industry’s growth.
EV industry growth in India
Despite representing a relatively small portion of the overall two-wheeled sales, with 392,681 electric units sold out of 6.98 million by May 2023, the growth it represents is evident. The Society of Manufacturers of Electric Vehicles reported that sales of electric two-wheelers in India rose to 846,976 units in 2022-23’s fiscal year, a two-and-a-half-fold increase from the previous year’s 327,900 units.
Bain & Company stated in December 2022 that two and three-wheeled transportation will be the frontrunners in EV adoption, projecting a 40-45% market penetration rate by 2030.
On average, insurance costs €14 per month. The most popular provider in this insurance market is ANWB. Hybrid bicycles are most often insured (73%). This is evident from the third edition of the E-bike Monitor, a large-scale study by Multiscope among more than 5,000 Dutch people.
Sharp increase in the e-bike insurance market
The total e-bike insurance market currently has an annual value of €550 million. Last year it stood at €313 million. This increase is due to the growth in the number of e-bikes, and higher monthly insurance costs. On average, these costs currently amount to €14 per month. Insuring a hybrid bicycle is the most expensive, costing an average of €16 per month. 5% of e-bike owners report a bike having been stolen in the past.
ANWB most popular insurer
Most e-bikes are insured through ANWB. In addition to ANWB, ENRA, Kingpolis and Univé also occupy a large part of this insurance market. Unigarant, Allianz and Interpolis follow at some distance. It is striking that 13% of the Dutch do not know with whom their electric bicycle is insured.
Hybrid bicycles most insured
Six out of ten electric bicycles are insured. This share is remarkably higher for electric hybrid bicycles (73%). Electric cargo bikes and folding bikes, on the other hand, are insured less often, at 40% and 30% respectively. In general, it can be said that the higher the value of an electric bicycle, the more often it is insured.
About Multiscope
Multiscope is a specialist in online market research. We support companies and organizations in making the right decisions through online panels, market reports and innovative research solutions.
The results in this press release come from the third edition of the E-bike Monitor, a large-scale survey of electric bicycles, electric scooters and light electric vehicles in the Netherlands. The survey surveyed 5,063 respondents aged 18 and over, representing the Dutch population.
Comments Off on LEVA-EU Member Stromer sees 17% sales growth in 2022
Despite the challenges seen in global supply chains and an evolving workstyle, the speed-pedelec producer has enjoyed continued success.
Stromer (myStromer AG) proudly reported a 17% growth in sales during 2022. The ST3 with Pinion gear was the most sold model, while the new high-end flagship ST7, the world’s first s-pedelec with electronic shifting Pinion Smart.Shift and Carbon Belt Drive, raised the bar for reach and power. In Benelux, Stromer is a leader in terms of market share (Belgium: 37% with a growth of 3% compared to the previous year; the Netherlands: 49.7% with a growth of 11%).
Although the year presented challenges to the entire e-bike industry, including difficulties in supply chains and currency fluctuations, Stromer’s market position in Switzerland maintained its standing and the German market recorded double-digit growth.
Co-CEO Tomi Viiala summarizes: “A 17% growth in 2022 shows that we are on the right track with Stromer and our offering. I believe that the subject of mobility in Europe and North America is still in its infancy and will continue to generate significant growth for the entire industry. We also see this positive trend in our Stromer customers, who drove 30 million km more in the past year than in the COVID year. In total, Stromer s-pedelecs have covered 99 million km in 2022.”
myStromer’s 2023 Prospects
In 2023, Stromer is again targeting double-digit growth as the s-pedelec market is projected to continue developing positively. To assist in this goal, additional staff will join the team with a strategic focus on retail support and sales, including a US-focused team.
To support the expansion of the German s-pedelec market, myStromer, together with the lobby office Politik + Strategie and other manufacturers, is supporting the Allianz Zukunft S-pedelec project. Together with national partners, Stromer will offer innovative financing solutions for companies and individuals. Stromer is the first bicycle brand ever to launch an all-inclusive leasing solution with AMAG in Switzerland, covering all costs for maintenance, insurance, or new tires for the duration of the leasing contract.
Co-CEO Karl Ludwig Kley adds: “We look forward to 2023 with confidence and a solid capital base. Over the past year we were able to take measures to secure our supply chains and increase production capacity for the future, this allows us to respond flexibly to market influences. In addition, we are constantly developing on our existing product range and new innovations to further expand our market position.”
Shifts in leadership structure
Stromer enters 2023 with a few leadership changes. Tomi Viiala, who previously held both the position of Co-CEO and global leadership of Sales, will fully concentrate on his role as CEO in tandem with Karl Ludwig Kley. The position of Global Sales Director will be filled with immediate effect by Kobe Broos, who has led the Benelux Sales team since 2018 and has been General Manager for Benelux since 2021. Pieter de Greef will become the new General Manager of myStromer B.V., while he continues to exercise his position as Head of Retailer Support. Both Broos and de Greef bring years of experience from the automotive sector.
A new large-scale study by E-bike Monitor estimates 14.2 billion euros worth of light electric vehicles, including e-bikes and e-scooters, are currently owned by the Dutch.
The study concluded that 42 percent of Dutch individuals over the age of 18 own one or more light electric vehicles, equating to 6 million LEV riders and 6.2 million vehicles. The study had a sample size of 5,000.
Within this bracket, electrical bicycles hold the largest share, with the number of owners growing from 4.6 million to 5.5 million in the last year alone. This equates to an €11.8 billion market value, with the total LEV market growing 24% to reach a value of €12.4 billion.
Alongside a growing market share, the price of electric vehicles also rose in the last year, with the average cost for a city e-bike rising from €1,876 to €2,036.
Increasing amounts of Dutch people are investing in electric bikes to travel to and from their place of work. Researchers at the Knowledge Institute for Mobility Policy (KiM) expect this trend to continue, though it is noted that e-bikes primarily replace traditional bicycles.
Due to the possibility of faster travel with less effort, the number of new electric bicycles has been on the rise since 2018, overtaking the sales of regular touring and city bicycles. In 2021, approximately 52% of the 923,000 new bicycles sold were e-bikes. The number of electric bicycle owners, estimated at 3.6 million in 2021, will continue to grow in the coming years, conclude the KiM researchers in their report on the purchase and use of e-bikes.
More than 1 in 5 Dutch citizens that do not yet own an e-bike plan to purchase one within the next 5 years, including a large group that plans to use the technology for their home-work journey.
With working Dutch people willing, on average, to travel up to half an hour via e-bike, approx. 10km, about 60% of all commutes could be replaced by this transport type. Included in this group are those who would be unable to cycle without electrical assistance, opening up a whole new segment of two-wheeled commuters that can now enjoy active travel.
Due to the growth in e-bike ownership, KiM expects that e-bike use will grow by approximately 45-70% over a period of 5 years, from 2019 to 2024. Part of that growth is at the expense of traditional bicycle use. The total distance traveled by bicycle is expected to increase by 6-8% as a result of an increase in e-bike ownership. This does not take into account other factors influencing use, such as the COVID-19 pandemic, or economic and demographic developments.
The researchers believe – partly on the basis of previous research – that increased e-bike ownership will probably lead to a decrease in car use, but they cannot determine with certainty to what extent.
Previous studies have shown that e-bike owners cycle more and drive less than they would without access to an e-bike. Support schemes for e-bikes exist in a number of countries, but knowledge about the effect of subsidies on active transport is limited. A new study into an Oslo-based e-bike subvention scheme reports on the uptake and use and the accompanying benefits.
To boost the uptake of e-bikes, Oslo City Council introduced a subvention program (€500) for e-bike purchasers in 2016. Applicants disclosed a travel diary, answered a web survey on usage, and downloaded an app to support their activities. The survey results from the trial group were compared with two control groups; an outside sample of individuals and subvention receivers who had not yet purchased the e-bike. Compared to the control groups, the trial group increased cycling activities by 17–22% after subsidized e-bike purchase and a range of 11.6–19.3 km. The subvention led to more cycling activity and it concluded that financial incentives may contribute to a boost in active transport, even when the subvention is of a simplistic kind that does not target specific population segments.
E-bikes have increased in popularity worldwide during the last few decades and represent the fastest-growing segment of the transport system (MacArthur et al., 2014). One aspect of e-bikes that is attracting more and more research interest is their effect on mobility patterns (Peterman et al., 2016). The e-bike has notable results regarding the impact on daily transport modes compared to regular cycling and walking. Distances are increased and even those only considered to be accessible by active transport are considered; traditional cycling barriers are reduced (de Geus and Hendriksen, 2015). The e-bike may also reach population segments that are not prone to regular cycling or walking and particularly important for countries with current low bicycle use. However, the most rapid uptake has occurred in countries with high existing bicycling shares.
A scoping review by Bourne et al. (2020) highlighted that the impact of the e-bike on travel behavior is largely influenced by the primary mode of travel prior to the introduction of the e-bike, largely a shift from traditional bicycles or cars. Physical activity has obvious health benefits and due to the electrical motor assistance, barriers such as long distances and hills become easier to overcome (de Geus and Hendriksen, 2015), and hence facilitate more physical activity in everyday life (Oja et al., 2011). The potential downside of the motor assistance is that it requires less self-generated power (i.e. energy expenditure) for a given time and distance, compared to a non-assisted bicycle. However, the e-bike is found to require physical activity of at least moderate intensity (Bourne et al., 2018)
To boost e-bike sales, various forms of support schemes or incentives have been introduced, driven by a concern for the environment and for public health. Learning about the mode-share effects and changes in the overall cycling of such schemes is of particular interest, as it is an open question whether the motivation to use the e-bike after purchase is the same among subvention receivers as among “normal” e-bike purchasers. This recent study assesses the effect of subsidizing the purchase of e-bikes on users’ daily mobility patterns, and overall bicycle usage. Bicycle usage was measured by two items; how far (in kilometers) were ridden and whether the use was for transport or exercise. The trial group was also asked if (and when) they had bought the e-bike and first put it to use. To match the control group to the trial group they were also posed the question: “If you were to buy a bike today, would you consider an electric bike?” Possible answers were: “Yes, absolutely”; “Yes, maybe”; “I don’t think so”; “Don’t know” and “No, certainly not”.
The app data was collected over a period of two months and the total number of trips recorded was 219,105. The largest difference in car use was between prospective buyers and those who had purchased an e-bike, and some of the higher cycling mode share was due to decreased use of public transport. The study was only designed to look at the relatively short-term effects of the subvention program and some participants had owned their e-bikes for five months. The data indicated that the earliest adopters cycled more than the latecomers, but this could just as well be a result of stronger motivation as of length of ownership. Typically, many people will cycle less or stop cycling completely in the winter months.
The study concluded that financial incentives can contribute to a boost in active transport even when the subvention is simplistic and doesn’t target specific population segments. For subvention receivers participating in the study, the increase in cycling was significant so promoting e-bikes with fiscal incentives seems to work as intended in a Nordic country with relatively low cycling levels.
When we think of electric bicycles, we consider the forward-thinking technology behind this increasing market. A growing number of cyclists are choosing the electric range over more conventional bicycles, but with this choice comes a maintenance cost. However, the expenditure is perhaps not as daunting as we might expect.
The research
According to Multiscope’s E-bike Monitor study among 3,200 Dutch cyclists, the annual maintenance for electric city bicycles and speed pedelecs averages at a mere 41 euros. Only slightly more expensive are the maintenance costs for mountain bikes and hybrid bicycles, averaging at 44 euros. As one might expect, due to their more complex designs, electric folding bicycles, cargo bicycles and tricycles break the 50 euros quota, but only just. This category has a mean annual cost of 54 euros.
Bearing distinct similarities to brands in all markets, maintenance costs varied according to the manufacturers. Focusing on the five largest e-bike brands, Giant’s Electric City Bike range averaged at only 30 euros per annum. Most expensive were Sparta’s range at an average of 56 euros, with Batavus (35 euros), Gazelle (38 euros) and Stella (46 euros) filling the gap.
Good news for bike shops
Multiscope’s study also included data on where the aforementioned maintenance takes place. Nearly two-thirds (66 percent) chose bikes shops for upkeep duties on their electric bicycles, while 14 percent preferred to consult the manufacturers. Owners of electric bicycles and private individuals accounted for 9 percent of this study and in 7 percent of cases, no maintenance was required.
The research showcases the annual value of the Dutch electric bicycle maintenance market, now worth 200 million euros. With this increasingly-popular two-wheeled trend set to continue, bike shops are gearing up for busy schedules and accountable costs.
The nationwide German Bike Monitor 2021 survey, which occurs every two years, has highlighted shifting attitudes towards cargo bikes within the population
The definition for a cargo bike used in the survey is as follows: “The cargo bike is a bicycle that is used to transport loads or people. Depending on the intended use, the basket/box is in the rider’s field of vision or in the rear area of the bike. Depending on the design, these bikes are equipped with two or three wheels.”
From this, participants were quizzed on various aspects of the cargo bike market. The representative survey now estimates over eight million potential cargo bike buyers in Germany alone, with double that figure showing interest in cargo bike-sharing services.
Awareness of cargo models has risen from 38% in 2017 to 63% in 2021, clearly indicating the growing market. Additionally, 2% of the population now use a cargo bike in their lives (1.2 million individuals).
An interesting question, newly added this year, regarded second-hand bikes. The cargo bike garnered the most interest of all bike models in this case. 35% of those interested in a cargo bike would prefer to buy pre-owned; for comparison, this figure falls to 14% when averaged between all bike types.
The final and particularly insightful section of the data explores the arguments against interest in cargo bikes; the reasoning for such disinterest was found to cover a range of issues. At 61 percent, having your own car will remain the most important argument against buying a cargo bike in 2021, this was followed by the bikes being ‘too bulky and unwieldy’ (36%), lack of parking/storage space (29%), skepticism about effectiveness (27%), and finally, the high price tag at 24%.
The Federal Reserve Bank of New York, publisher of the global supply chain pressure index (GSCPI), has revealed the impact of the Russian invasion of Ukraine in its latest release.
The invasion added additional pressure to a global network that was already under strain. Pressure is now at an all-time high since the index’s creation in 1997. The scenario continues to develop as trade and payments with Russia and Belarus rapidly decrease in line with Western bank sanctions. This turn of events is a stark contrast to early 2022 predictions that pressure was beginning to equalise following Covid-19 disruption.
The GSCPI summarises 27 variables that impact global supply chain functioning, including measures such as cross-border and manufacturing costs. A score of 0 indicates that pressure is at an average level, and any positive increase indicates how many standard deviations the index is above average value, and vice versa. The value currently stands at 4.
In the LEV industry, where a product as a whole may be completely dependent on specific, independently sourced parts, this pressure increase could force some manufacturing to a standstill. As the global scenario continues its progression, the impact on the supply chain will be closely observed by many.
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