Zero Motorcycles, Jiangsu Xinri E-Vehicle score highest in new Pike Research assessment of electric motorcycle and scooter manufacturers
|Pike Pulse Grid for electric motorcycles and scooters. Click to enlarge.|
According to a new Pike Pulse report published by Pike Research, the two electric motorcycle and scooter manufacturers who are best positioned to take advantage of upcoming shifts in the market are Zero Motorcycles and Jiangsu Xinri E-Vehicle.
The market for electric motorcycle and electric scooters is nascent in most regions of the world, except for Asia-Pacific. The vast majority of e-motorcycle and e-scooter sales in 2011 occurred in that region (17 million vehicles estimated for Asia Pacific, versus just over 30,000 for the rest of the world combined), but the market is on the verge of major competitive changes over the next couple of years, according to Pike. A few large vendors, including Honda and KTM, have entered the market, while competitors such as Brammo, New Vetrix, and Current Motor Company have drastically revised their business plans or developed new products over the last two years.
Because the e-motorcycle and e-scooter market is in the early adopter stage, Pike suggests, the business relationships, distribution and production strategies, and sustainable business models are not yet fully developed in many cases. Pike Research found that there are no OEMs that could be considered Leaders in these rankings, but by the same token, there are no Followers either.
Most e-motorcycle and e-scooters are still in their first or second generation. Business relationships, distribution and production strategies, and sustainable business models are still in formation. Because the market is still in its very early stages, most of the overall rankings in our Pike Pulse report are lower than one would expect in a mature or fully developed market.—senior analyst Dave Hurst
The distribution channel for e-motorcycle and e-scooters remains a significant hurdle in this market. Large, international original equipment manufacturers of gas scooters and motorcycles are only now starting to test market their electric products. Pike expects their entrance into the e-scooter and e-motorcycle market to shake up the market thanks to their deep marketing budgets, established dealer networks, and broad international reach. Although the e-scooter and e-motorcycle market has yet to develop high sales volumes outside of the Chinese market, companies are finding success through fleet and off-road markets.
|The e-motorcycle and e-scooter market is here to stay. |
Zero Motorcycles achieved the highest ranking in this Pike Pulse due to a combination of strong strategic planning and good execution on that plan. With a product lineup well-suited to the less cost-conscious early adopter market, the company has put together a strong management team and continues to build a robust dealer network in the key regions of Western Europe, Asia Pacific, Latin America, and North America, according to Pike.
Jiangsu Xinri E-Vehicle has a very different business plan than Zero. The company has been growing its market for e-scooters steadily by offering a wide variety of models to fit what consumers in China need today, and has found some success in exporting to Asia Pacific, North America, Eastern Europe, Middle East, Africa, and Latin America as well. The company plans to double production by raising funds through a stock initial public offering in early 2012.
|Pike’s Top 10 Vendors|
|2||Jiangsu Xinri E-Vehicle|
|9||Current Motor Company|
The “Pike Pulse Report: Electric Motorcycles and Scooters” evaluates 12 of the leading electric motorcycle and scooter manufacturers and rates them on 12 criteria for strategy and execution, including vision, go-to-market strategy, partnerships, product and production strategy, technology, geographic reach, market share, product quality and reliability, product features, pricing, and staying power. Pike profiles, rates, and ranks vendors with the goal of providing industry participants with an objective assessment of these companies’ relative strengths and weaknesses in the emerging electric motorcycle and scooter marketplace.