Recently, a number of E-bike brands have issued notices intensively, saying that their products will rise in price in an all-round way. Behind the price increase is the purchase price rise of motor, tire, frame and other parts, which promotes the rise of manufacturing cost of electric bicycle. In response, a reporter from Securities Daily asked Yadi holdings, a Hong Kong listed company, about the news, but did not get a reply from the company.
Tan Chengping, senior analyst of Analysys International, told this reporter: “there are various reasons for the price rise of electric bicycles. First, since the implementation of the new national standard in April 2019, the transition period of over standard vehicles in some provinces and cities officially ended in 2021. Therefore, in order to meet the policy requirements, the enterprises optimize the materials and production process, while the cost of upstream raw materials continues to increase, which brings great pressure to the production Second, due to the impact of the domestic epidemic situation and the approaching of the Spring Festival holiday at the end of the year, the prevention and control is tightened, the supply of transport capacity is reduced, and the logistics cost is rising; third, driven by many favorable factors such as the new national standard, sharing, take out, express delivery, export, the demand will usher in explosive growth in 2020, and the industry will be in a state of short supply. ”
With the epidemic situation under control in China, is there any incentive for the price increase of e-bikes? Is the price of some brands of electric bicycles rising, or is it a common phenomenon in the industry?
The sales of an E-bike store in Shunyi District, Beijing, told reporters that it is the off-season for E-bike sales, and some stores have closed down due to the epidemic situation and Spring Festival, but they have not heard of the price increase. Whether the price will rise in the future depends on the situation after opening the store.
At the same time, “Securities Daily” reporter visited a number of E-bike sales stores. Among them, near Beijing West Railway Station in Fengtai District of Beijing, Ms. Li, the manager of a Lvyuan E-bike sales shop, told the reporter: “the sales price of my E-bike has not gone up. During the epidemic period, the sales volume is not good. It’s good not to reduce the price. How can the price go up?” She told reporters that during the epidemic period, the sales of e-bikes were not good, the goods were all purchased half a year ago, and there was no purchase in the near future.
Mr. Tan, manager of a sales store for No. 9 electric bicycle, told reporters that the electric bicycle in the store will rise by 200 yuan per vehicle from January 1 this year. “As the background technology of No. 9 E-bike is constantly upgraded, the new system will come out, the E-bike will be updated to the latest system, and the price will rise.”
Ms. Yan, the agent of Yadi electric bicycle, told reporters that she had been informed that the sales price of each vehicle would increase by 100 yuan from January 1 this year.
Although a number of E-bike sales stores said there was a price increase, some stores said they could reduce the price again in the form of discounts.
Behind the price rise of E-bike is the rising cost of upstream parts. Since May last year, the purchase prices of frame, tire, motor and other parts have continued to rise. Compared with the beginning of last year, the prices of motor, tire and frame have increased by 20%, the prices of plastic parts have increased by 35%, the prices of cables have increased by 25%, and the production costs of electric bicycle manufacturers have generally increased by more than 20%.
In response to the price rise of electric bicycle parts — tires, a securities representative of a listed tire company who did not want to be named told Securities Daily: “the price rise of tires is driven by the price rise of raw materials. Raw materials account for more than 70% of the cost of tire production. Up to now, natural rubber has increased by more than 30% compared with the beginning of 2020, and carbon black has increased by about 70% 。”
The reporter of Securities Daily learned from the official website of bicycle association that the latest data shows that from January to September 2020, the output of Enterprises above Designated Size of electric bicycles will be 22.853 million, with a year-on-year increase of 30.3%. The business income of Enterprises above the designated size of E-bike was 67.76 billion yuan, an increase of 26.6% year on year, and the profit was 2.63 billion yuan, an increase of 30.4% year on year.
Reprint indicated source：Spark Global Limited information