Warning on China Electric Bicycle Industry — Overcapacity and Standards Deficiency

13 ianuarie 2011

Electric bicycles, as a new generation convenient means of transportation, are favored by the masses. According to the survey, most consumers buy electric bicycles are based on two main reasons: First, the cost of electric bicycle is low, and the price is affordable and easy for charging. Motorcycle’s maintenance and parts changing is expensive, but for electric bikes, only a little electricity fee is needed, others is almost zero; second, the electric bicycles don’t need registration, no card and insurance, but the motor vehicles must have complete license on the road and purchase insurance, which is costly and complicated, so consumers are more willing to choose electric bicycle instead of motorcycle.

According to the statistics by the electric bike industry, the current possessing capacity of electric bicycle in China is more than 120 million, moreover, it is still increasing with the speed of 20 million per year, more and more consumers have regarded electric bicycles as their first choices for travel. Although the electric bike has four consumption characteristics–economical, convenient, energy-saving and environmental protection, which is in line with the international development trend of low-carbon economy, but the industry, still faces significant policy risk.

It is understood that although the Road Traffic Safety Law has explicitly prescribed the electric bicycles are non-motorized vehicles, but the problems whether to implement listing registration and management on electric bikes or not and the decision-making power of allowing them to go on the road are transferred to the dirt bike provincial government. At present, the reasons why most regions restricting the electric bicycles are that their speed is too high and they will snatch road with pedestrians and motor vehicles, some cities think that the pollution of electric bicycle is serious, the claim is difficult after traffic problems happened and so on. In addition, the national standard dispute on electric motorcycles that happened at the end of last year has further exacerbated many manufacturers’ worry on the pole policy risk. Although China’s fitness industry has entered a stage of steady development, but some problems and electric bike development bottlenecks also existed should attract attention.

First, the overcapacity should be paid attention. The overcapacity of electric bicycle leading to low price competition has become the rule. According to statistics, currently, there are more than 2,000 skyrunner enterprises have production licenses in China, but their production is scattered and the industry concentration is low. Especially since last year, the weak demand has triggered a new round of price war, some small manufacturers are too much indulged in price advantage but ignore the atv product after-sales service, which has brought risks for the healthy development of electric bicycle industry, so the country should consider to carry out access standards.

Second, new scooter industry standards should be unveiled as soon as possible. The current standard the electric bicycle implemented is also the one before 10 years, as the electric bicycle itself is in continuous technological progress, so how to develop the appropriate and more scientific and standardized technical indicators and standardized system has become a serious problem. Although the authorities have been active in reconstituting standards, but compared to the development of the whole industry, this work is clearly lagging behind.

Third, the country should encourage and support enterprise to develop electric bicycle products that are consistent with the rural consumers habit. The rural market will be the focus of electric bicycle development in the future, now a number of provinces including Shandong have regarded electric bicycles as complementary products for home appliances to rural areas, so scooters enterprises must adjust the existing product features and structure based on the use environment in rural areas and farmers’ use habit, at the same time, relevant supervision department should also increase the supervision on rural after-sales network and service system.

Above provided by SelectChina.com, and find more information on China Machinery Manufacturers / China Machinery Products.



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