Chongqing- This year's electric motorcycle exhibitors significantly increased, challenging the status of fuel motorcycles, according to the 20th China International Motorcycle Trade Exhibition (CIMAMotor 2022) in Southwest China Chongqing Municipality on November 2.

CIMAMotor has been held annually since 2002 and has become the world's largest and most important event for commuter motorcycles after continuous development.

Representatives of motorcycle enterprises, government officials, investors, and e-commerce platforms gathered in the mountain city of Chongqing to share insights on the electric motorcycle industry development trend.

Electric motorcycles are worth the investment

"The electric motorcycle market has a huge prospect, worth strong investment," said Gong Hui, executive vice president of Loncin Motor Co., Ltd. "Under the Dual Carbon goals, the motorcycle industry continues to improve the efficiency of traditional fuel motorcycles while also expanding to new energy."

In 2021, motorcycle sales in China amounted to 20.2 million units, of which electric motorcycles accounted for 20%. Due to the influence of the national emission standards, 150 million motorcycles exceeding the bar will be transferred to the electric market from 2022 to 2025, further expanding the electric motorcycle industry.

"Behind the rising electric motorcycle is consumers' value and requirements changing," said Cui Jian, general manager of Chongqing Summit Yttrium Chen Electromechanical Co., Ltd. "The electric motorcycle, with speed, passion, and environmentally friendly, is desirable to young people, and the post-2000 generation will become the primary target."

Another exhibitor deemed that commercial demand like expressage and delivery laid the foundation for the electric motorcycle market.

The popularity of sharing electric motorcycles has also changed the low-end inherent in people's minds, with lithium battery technology and material innovation creating a new growth point.

Chongqing enterprise representing China for IMAE 2022 in Milan

Some participants believe that Chongqing has a pioneering advantage in the electric motorcycle industry.

Cheng Yao, vice president of the Chongqing Council for the Promotion of International Trade, said that as an essential motorcycle production base in China, Chongqing has leading electric motorcycle enterprises such as Emma, Yadi, and TAILG.

In 2021, Emma entered Chongqing with an annual output of 3 million units valued at over 10 billion yuan (about 1.4 billion U.S. dollars). In 2019, Yadi settled in Yongchuan District, with an annual sales volume of 1.5 million units. In 2022, TAILG will invest 2 billion yuan to build a new energy industry base in Dazu District, generating 11 billion yuan annually.

Zongshen Motorcycle, Loncin Motor, and other well-known local motorcycle enterprises have launched new products this year, promoting the growth of the Chongqing electric motorcycle industry.

"Thanks to China's market scale and technology accumulation, electric motorcycles have become the dominant field of independent motorcycle brands, boosting international competitiveness," said Cui Jian, General Manager at Chongqing Everest Yttrium Power Technology Co., Ltd.

Cui continued, "a few years ago, our company began to export to Europe and the United States. On November 8, we will represent China participating in the International Motorcycle and Accessories Exhibition 2022 (IMAE) in Milan."

An investor expressed that Chongqing benefits from a solid industry foundation and government support. It is expected to attract more industrial capital for the industrial chain, new consumption, and new retail.

Relaxing restrictions on product and road access

However, the development of electric motorcycles will not be smooth sailing always.

Gong pointed out that with comparable performance, the cost of an electric motorcycle could be 30% to 50% higher than that of a fuel motorcycle.

Meanwhile, the motorcycle is small and requires high technology of motorcycle battery. Besides being affected by national and local policies, relaxing restrictions on product and road access are necessary.

"As a leader in electric motorcycles, Chongqing needs to focus on products, services, supply chain, and industry chain, especially discard the low-quality competition, to enhance the industry's value through high-quality development," said Sun Muchu, chief executive officer of TAILG.

"Consumers present diverse demands, such as the pursuit of high-end, entertainment, or personalized products," said Ma Yuanyuan, partner of Shengshi Investment Co. Ltd. "Low-demand customers only need motorcycles for commuting. Enterprises need to find their positioning in the market to develop differentiation."