The market for electric motorcycle and electric scooters is on the verge of major competitive changes over the next couple of years, and California-based Zero Motorcycles is the best-positioned company, according to research and consulting firm Pike Research.
The market for electric motorcycle and electric scooters is on the verge of major competitive changes over the next couple of years, and California-based Zero Motorcycles is the best-positioned company, according to research and consulting firm Pike Research.
The market for electric motorcycle and electric scooters is in its infancy 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 that is beginning to change as a result of higher fuel prices in the U.S., increasing urban traffic, and growing consumer awareness of energy and environmental issues.
A few large vendors, including Honda and KTM, have entered the market, while competitors like Brammo, New Vetrix, and Current Motor Company have drastically revised their business plans or developed new products over the last two years. However, according to Pike Research, Zero Motorcycles and China’s Jiangsu Xinri E-Vehicle are the most prepared to take advantage of the upcoming shifts in the market.
Zero Motorcycles achieved the highest ranking in a recent Pike report thanks 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.
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.
“Most e-motorcycle and e-scooters are still in their first or second generation,” says Pike senior analyst Dave Hurst. “Business relationships, distribution and production strategies, and sustainable business models are still in formation.”
Bart King is a PR consultant and principal at Cleantech Communications.
Published Jan 19, 2012 4pm EST / 1pm PST / 9pm GMT / 10pm CET
Bart King is the founder and principal at New Growth Communications. He specializes in helping sustainability leaders develop thought leadership content and strategy