How is Increasing Urbanization Fuelling Surge of Chinese Electric Scooters and Motorcycles Market?

Increasing urbanization is one of the major factors propelling the demand for electric scooters and motorcycles in China. The total population living in cities in China is predicted to increase from 50% of the country’s total population in 2011 to 65%–70% of the total population by 2030. The increasing rate of urbanization in China is rapidly boosting the demand for transportation from the small and medium cities in the country, especially for short-distance travelling, which is in turn, pushing the demand for electric scooters and motorcycles in the country.

The soaring awareness amongst the people in China about the environmental degradation caused due to the large-scale usage of fossil-fuel powered vehicles is another major factor fuelling the rise in the demand for electric two-wheelers such as scooters and motorcycles in the country. In addition to this, the stringent regulations enacted by the Chinese government on the sale of lead–acid batteries in the country have reduced the number of lead–acid battery manufacturers in the country from 1,000 to around less than 200 from 2012 to 2016. This is eliminating unorganized manufacturers, thereby leading to the growth of organized battery producers.

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Due to the above-mentioned factors, the worth of the sales of electric scooters and motorcycles in China is expected to increase from $7.7 billion in 2017 to $12.5 billion by 2025. The Chinese electric scooters and motorcycles market is predicted to progress at a CAGR of 6.1% during the forecast period (2018–2025). There are also many other factors pushing the demand for electric scooters and motorcycles in China such as their numerous advantages over the conventionally used fossil-fuels powered vehicles like lower operational costs and their ability to operate while producing zero noise pollution.

Therefore, it can be concluded that due to the rising need for eco-friendly and convenient modes of transportation, increasing urbanization, soaring awareness amongst the people regarding the pollution caused by the fossil-fuel powered vehicles, and the thriving e-commerce industry, the demand for electric scooters and motorcycles will skyrocket in China in the coming years.