The world’s largest electric two-wheeler manufacturer, Yadea, reported revenues of RMB 28.24 billion (USD 3.91 bn) in 2024 (reporting period Jan-Dec), an 18.8% decrease from RMB 34.76 billion (USD 4.82 bn) in 2023.
Yadea said the decline was due to lower sales in Mainland China. The situation was compounded by distributors destocking inventory as Yadea has been modernising its range and is phasing out old model scooters. This destocking also resulted in discounts across the old model scooters to accelerate the inventory clearance.
Sales volumes of electric scooters declined by 20.7% from approximately 4.96 million units in 2023 to approximately 3.931 million units in 2024. Meanwhile, the sales volume of electric bicycles decreased by 21.4% from 11.56 million units in 2023 to approximately 9.09 million units in 2024.
The drop in revenues resulted in a sharp decline in net profits. Profits were down from RMB 2.64 billion (USD 370m) in 2023 to RMB 1.27 billion (USD 18m) in 2024.
Yadea maintained stable research and development costs at RMB 1.15 billion (USD 160m) in the year, compared to RMB 1.19 billion (USD 167m) in 2023.
Inventory Increases
Despite the company working on reducing inventories and stockpiles at dealers by selling scooters at lower prices, the actual inventory has increased. Yadea’s inventories increased by 33.9% from RMB 955.4 million (USD 132.3m) as of end-December 2023 to RMB 1,279.4 million (USD 177.3m) as of 31st December 2024. The increase in inventory meant that the average inventory turnover days increased from 15.04 days in 2023 to 17.03 days in 2024.
Yadea attributed the inventory increase to the increase in the stock reserves of finished goods and batteries for the anticipated demand for the Chinese New Year holiday in the PRC in early 2025.
International Expansion
Even as the Chinese market saturates and competition increases, Yadea has been expanding rapidly in relevant international markets. There is a strategic focus on Southeast Asia, and Yadea has initiated development of its factories in Indonesia and Vietnam. In 2024, Yadea also entered the Thailand market, opening three flagship stores.
On the other side of the world, Yadea has started manufacturing at its Manaus facility in Brazil, its first plant in the LatAm region.
Since the start of the new year, Yadea has also started offering its entry level scooters and electric cycles with Na-ion batteries.
As of trading today, the HongKong listed Yadea has a market cap of HKD 40.8 bn (USD 5.26 bn). The company remains the most profitable electric two-wheeler manufacturer in the world.
