Impact of COVID-19 on the Electric Cargo Bikes Market
The electric cargo bike sector has been considerably affected owing to the rising COVID-19 pandemic across the globe. Changing consumer preferences and behavior due to the altered global scenario is expected to substantially influence the E- cargo bike industry. However, government authorities are providing various subsidies and tax reductions on E-bikes that will support the products’ market growth over the forecast timeframe. For instance, several countries in Europe are offering incentives on electric bikes as a part of the green initiative program. Moreover, in January 2020, the Netherlands introduced new leasing rules for E-bikes with reduced tax rates that will accentuate the expansion of the industry.
In the critical scenario of COVID-19, industry participants are responding positively toward the electric cargo bikes industry with high investments for coping up with the future consumer demands. For instance, in February 2020, Hero cycles announced strategic investments for the production of E-bikes in India that will support the electric cargo bike market growth in the country. Moreover, in March 2020, Simplo Tech Group (SMP) also invested in the E-bike sector, which is projected to propel industry growth. QWIC, an E-bike manufacturer, received an investment of over USD 10 Million from De Hoge Dennen Capital that will help the company to develop its products and to enhance its product portfolio.
Some players are engaged in new product launches to provide customers with multiple product lineups. For instance, in February 2020, DŌST Bikes, a new company from Canada, announced the launch of E-bikes featuring 750W long-range, high-performance, mid-drive motors with a range of around 120 miles. However, few manufacturers have also reduced their E-bike production during the coronavirus pandemic. For instance, BAFANG, a china-based manufacturer of e-bike motors and batteries, has ceased production for the time being, which is projected to impact the market growth. Thus, the COVID-19 outbreak has substantially affected the electric cargo bikes market with reduced production. However, the ongoing trend, government support & policies for E-bikes along with increasing consumer awareness to reduce carbon footprint and global warming are expected to boost the market growth in the coming years.
China E-Bike Sales (2015 – 2019)