Over the last two weeks we have been analysing why there is
no electric two-wheeler brand to rival Tesla's success in the electric car market. Almost all brands are geographically constrained and limited by the lack of a technological edge or financial strength. We also checked
what may provide an edge in today's world: Technology - Hardware & Software, co-platforming to improve scale efficiencies, Scale, Deep pockets, and Distribution strength.
Post analysing everything, we came to the conclusion that it is only Chinese manufacturers like Yadea who currently have some of these attributes that put them in a position of strength. Importantly, the Chinese are agile and willing to take risks, entering markets and opening opportunities when the world has not even woken up to them.
Mr. Dong Jinggui and Ms. Qian Jinghong should be the power couple of the electric two-wheeler industry. Together, as the Chairman and CEO, respectively, of the group, they own 62.96% of Yadea, the world's biggest (by sales numbers) producer of electric two-wheelers.
The group is huge and the market leader by far in the global E2W industry. However, just saying that it is the market leader does not correctly indicate the magnitude of its lead. Let's say, Yadea is bigger than the next twenty electric two-wheeler brands combined. It makes electric two-wheelers, including scooters, motorcycles, electric three-wheelers, three-wheeled microcars, kick scooters, and electric bicycles.
And yet, Dong Jinggui and Qian Jinghong are hardly known outside China.
That may be because till last year (2024), more than 95% of Yadea's revenues came from Mainland China. That is a trend that is unlikely to change in the near future, even as the company goes on an aggressive expansion and product spree in the international markets. Yadea would remain predominantly Chinese even though it is aggressively opening international frontiers.
The reason is the utter and complete domination of China in the global E2W industry. In 2024, the Chinese industry accounted for nearly 6.0 million electric two-wheelers. This number excludes electric bicycles and any pedal-assist two-wheelers. This is roughly 60% of the global electric two-wheeler market. In comparison, the next biggest market - India - sat at around 1.2 million units.
In this analysis:
Yadea: The Numerical Strength
Why the Chinese are Way Ahead?
Luyuan and AIMA: The Worthy Competitors
The Changing Shape of Yadea
Focusing on the Brand is the New Chinese Thing
The Chinese Market is Different
Quest for International Expansion
Focus on Technology
The Future?
Yadea: The Numerical Strength
What makes Yadea's domination even more mind-boggling is that 2024 was not even the best year for the company. That was way back in 2021, the pre-COVID era, when the company's sales had topped 6.1 million units.
In the same year, Yadea had sold 5.6 million electric bikes. Since then, scooter sales have come down steadily to 3.93 million units while electric bike sales hit a peak of 11.6 million units in 2023 before settling down at 9.07 million units in 2024. This reflects a changing trend in China (and the rest of the world), where electric bikes are aggressively eating into electric scooter sales.
