2022 White Paper on China's Two-Wheeled Electric Vehicle Industry

Market status: In 2021, the cumulative sales of two-wheeled electric vehicles in China will reach 41 million, and the sales of lithium-ion battery two-wheeled electric vehicles will account for 23.4%. In 2022, the transition period of the "New National Standard" in a large number of cities will end, and the exchange of two-wheeled electric vehicles will usher in a small peak; The two-wheeled electric vehicle market still has great growth potential.

Product and brand characteristics: Traditional brands mainly cover performance models in the mid-to-low price segment, while new power brands mainly focus on smart models in the mid-to-high price segment. Under the trend of light weight, lithium electrification, and intelligence, traditional brands focus on enhancing brand value as their main strategy to develop high-end smart lithium electric vehicles, while new power brands mainly focus on seizing market share and expanding channels. In the future, the new competition situation of two-wheeled electric vehicle brands may be based on smart models in the middle and high price segments.

User Insights: User research in 2021 found that users' attention to "intelligence" has increased significantly, and intelligence has become an important consideration for users when purchasing a car after battery life and power performance. In addition, the traditional brand image is homogeneous, focusing on professionalism, good service, and good reputation;

Development trend: Driven by the era of high-quality development and the demand for consumption upgrades, two-wheeled electric vehicle products are developing towards high-quality, intelligent and personalized. The battery life and performance are further improved, and the model design is more in line with the needs of subdivided user riding scenarios; the application level of intelligent technology is improved, and the user experience is upgraded. Under the trend of intelligent development, the market competition of two-wheeled electric vehicles will gradually lead to the competition of intelligent products and the competition of service ecology based on intelligent two-wheeled electric vehicles.

The transition period for the implementation of the "New National Standard" policy has arrived in many places, and 2022 will be a small peak for new car purchases. 2022 is the third year of the implementation of the "New National Standard" policy. The temporary license plate during the transition period in many cities will expire or will expire soon. Two-wheeled electric vehicles Ushered in a new round of redemption benefits small peak. On January 16, 2018, the Ministry of Industry and Information Technology issued the "Technical Specification for Electric Bicycle Safety" (GB 17761-2018), which requires mandatory implementation from April 15, 2019. Vehicles are subject to a transitional period of 3-5 years. Among them, Beijing, Shanghai, Tianjin, and Guangdong Province, Zhejiang Province, Jiangsu Province, Fujian Province, Guangxi Province, Jiangxi Province and many other places clearly stipulate that the two-wheel electric vehicle that has not been licensed during the transition period or is registered as a temporary license after the transition period expires. Cars are prohibited from driving on the road. At the same time, based on the needs of the people and the principle of orderly clearing, a small number of cities have adopted the method of extending the transition period or restricting the riding area to manage over-standard vehicles. Under such circumstances, the increase in redemption in the city may not be obvious.

Two-wheeled electric vehicle market sales In 2021, China's two-wheeled electric vehicle sales will reach 41 million, and the cumulative sales of two-wheeled electric vehicles in China will reach 41 million in 2021, a year-on-year decrease of 13.9%. Affected by other factors, the sales growth of two-wheeled electric vehicles was lower than expected. Under the influence of policy requirements such as energy conservation and emission reduction, carbon peaking, huge population and diversified green travel needs, timely distribution and the promotion of the growth of shared motorcycles, the two-wheeled electric vehicle market still has great growth potential.

The penetration rate of lithium batteries in the two-wheeled electric vehicle market continues to increase. In 2021, the sales of lithium-ion two-wheeled electric vehicles in my country will reach 9.6 million units, accounting for 23.4% of the sales volume of lithium batteries. Under the promotion of the "New National Standard" policy, consumer demand upgrade, product technology improvement, green travel environmental protection requirements and other factors, the proportion of lithium-ion two-wheeled electric vehicle sales has increased rapidly, but in my country, there are 320 million people and 70% to 80% of the sales volume. % is lead-acid vehicles, and the cost of lithium batteries and the threshold for lithium battery safety technology research and development are higher than those of lead-acid batteries and other industries.

Sales and prices of two-wheeled electric vehicles The sales share of luxury models has rebounded, and it is expected that both volume and price will increase in the long run. From the perspective of model sales, the sales of simple models after the "New National Standard" will grow faster, and the proportion of models will expand. The main reasons are as follows: The simple model is basically not troubled by the registration, the price of the model is lower, and the user's decision-making cost is lower, and it can better meet the consumer demand of users to wait and see while transitioning after the new policy is issued. In the third year of the implementation of the "New National Standard", consumers' policy wait-and-see mood has declined, coupled with the demonstration role of leading cities, consumers' focus has returned to their essential needs such as appearance, performance, and riding comfort, which is in line with the "New National Standard". The sales growth of luxury models has accelerated, and the market share has recovered and is expected to continue to achieve high growth. In terms of product prices, the "New National Standard" has intensified the competition for brand market share. Major brands have expanded product marketing efforts and increased the proportion of promotional models in order to gain a higher market share, resulting in a decline in the average product price. In the long run, under the influence of the quality improvement and clearing out of the "New National Standard", two-wheeled electric vehicles are expected to bring about a rise in both volume and price.