What is the cost of an electric bike? Why is it hard to sell for more than $4,000?

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The history of electric bicycle is only 20 years, compared to cars, bicycles, motorcycles have more than 100 years of history of transportation, electric bicycle is really a late generation. 20 years ago, the price of an electric bicycle is 500 U.S. dollars - 3000 U.S. dollars, and now the electric bicycle is still in the 600 U.S. dollars - 3500 U.S. dollars, not much increase. Why is this so? How much does an electric bike cost?
electric bike
The cost of an electric bicycle is mainly composed of several blocks, namely production cost, labor cost, procurement cost, tax cost and PR and marketing cost. The proportion of these costs is different for different companies.

Large electric bicycle enterprises, due to the scale effect and good supporting relationship, the average cost is much lower than that of small and medium-sized enterprises, but the corresponding public relations and marketing and labor costs will be larger. On the other hand, the difference between the two is not too big in terms of the average cost of the same vehicle.
electric bike
The only thing that can be estimated here is the procurement cost of e-bike parts, which accounts for about 30-40% of the overall cost. For an e-bike with a market price of 3000 RMB, the manufacturing cost should be around 900-1200 RMB. It mainly includes frame, plastic parts, motor, controller, battery, wiring, charger, tires, shock absorbers, brakes, lamps and other small body parts.

Over 20 years of development, the price of electric bicycle has not increased much, mainly due to the scale of procurement and production, if more than 30 million electric bicycles are produced every year, electric bicycle production has also realized the assembly line and automated production, greatly improving the production efficiency, the reliance on workers is not as serious as in the past. The cost of manufacturing and purchasing has not only not gone up, but also gone down.
electric bike
Although, in 20 years, labor wages have risen more than 10 times, but only account for 15-20% of the cost of electric bicycle manufacturing enterprises. The overall impact on the enterprise is not significant. Land and plant are fixed assets, but they are value-added items. The longer the company operates, the lower the cost of this piece. The longer the business is run, the lower the cost of this piece of business. Like Luyuan, a 20-year old company, this cost is very low.
electric bike
Why is it difficult to sell an electric bike for more than 5,000 yuan? There are two main reasons, one is that the electric bicycle itself is located in the ordinary means of transportation, along with the grassroots origin, in the hearts of the people to establish the image of civilian consumption, followed by more than 5,000 yuan electric bicycle has exceeded the basic transportation needs. People will think: 3000 yuan can also meet the same thing, why spend 5000 yuan to buy it?

Unlike cars, which have gone through a hundred years of development and have long been subdivided into different categories of high, medium and low end models, different categories correspond to matching social status and position. And the electric bike may be the only transportation without class distinction!

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