China Electric Bike Market Industry Chain

Electric bicycle is a two-wheeled bicycle with on-board battery as auxiliary energy source, with pedaling capability and capable of electric assist or/and electric drive function. Influenced by policies and other favorable factors, the production of electric bicycles in China has increased. Data show that in 2019, China's electric bicycle production will reach 36.093 million units, an increase of 10.1% year-on-year. After the implementation of the new national standard for electric bicycles, the industry has changed from high-speed development to high-quality development. From the perspective of the industry chain, electric bicycles are generally composed of electrical systems, control systems, decorative parts, body parts and accessories. The electrical system mainly consists of motor, controller, battery, inverter, flashing light, lamp, horn, main wiring harness, etc.; the control system consists of speed control handle, brake handle, brake cable, brake, switch, etc.; the decorative parts mainly include body panels and trunk; body parts mainly include frame, front fork, steering handle, rear flat fork, rear hanger, saddle, rear shock absorber and other special parts, as well as electric bicycle special standard parts (such as center shaft, crank pedal, flywheel, chain, chain adjuster, etc.); accessories consist of charger, bumper and rear view mirror. The core components of electric vehicles are frame, battery, motor, controller and charger.
1、Upstream suppliers
The upstream of the e-bike industry is mainly manufacturers of e-bike parts, including manufacturers of electric assembly parts, frame manufacturers of body parts, manufacturers of standard body parts, and manufacturers of decorative parts and accessories. Hundreds of raw materials are required for the production of electric bicycles, and some of the core raw materials are competed and supplied as follows.
Motors, batteries and controllers for electric assembly components are the core raw materials. At present, the production technology of this part of the upstream enterprises has matured, and there are more well-known manufacturers of batteries, motors and controllers with a certain scale and industry influence, and the industry is fully competitive with sufficient supply. Affected by the policy, the price and supply of motor and battery will fluctuate occasionally. For example, the state will regulate and consolidate the lead-acid battery industry. However, first-tier brand manufacturers can reduce the risk of shortage of core components and price fluctuations through stable and reliable procurement channels and scale advantages. Frame is the core component of electric bicycle. At present, well-known electric bicycle companies have the ability to produce their own frames. Most of the raw materials for frames are metal materials. The industry is mature, with sufficient competition and adequate supply. In addition, the handlebars and brakes in the control system, the wheels, saddles and shock absorbers in the standard body parts, and the chargers in the accompanying accessories are also the more important parts of the electric bicycle industry. The production threshold for these parts is very low. Currently, the industry is highly competitive and well supplied. Different types of products can be provided according to different types and forms of e-bikes, and the development of the e-bike industry has been relatively mature. The production technology of upstream suppliers is improving and the supply is sufficient, which provides important support for the electric bicycle industry.
2、Midstream Manufacturers
Electric bicycle manufacturing is in the midstream part of the industry chain. The manufacturer is responsible for the design and planning of the whole electric bicycle, and assembles the purchased or self-produced components according to strict engineering processes and operational standards to form electric bicycle products with electric drive or/and electric assist functions for downstream dealers or customers.
3、Downstream Channel Dealers
The downstream of the electric bicycle industry is mainly dealers. The electric bicycle industry is mainly sold through the distribution model, with dealers operating physical stores and undertaking product display, sales and after-sales service. Dealers in the electric bicycle industry are spread all over the country, providing a good support role for the sales, after-sales service and overall prosperity of electric bicycles. The end consumers of the electric bicycle industry are mainly individual residents or families. In recent years, with the continuous growth of national income, the purchasing power of Chinese consumers has been increasing; and, with the increasing awareness of environmental protection and the increasingly congested traffic conditions, electric bicycles are increasingly recognized by consumers as a means of transportation for residents, with their lightweight, energy-saving and economic features.

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