Subsidies narrow the price difference between oil and electricity, further improving the cost performance of electric two-wheelers. Combing the distribution of price bands in the Indonesian two-wheeler market, the current price of electric two-wheelers in the Indonesian mass market is 5-11 million Indonesian rupiah (approximately RMB 2363-5199) higher than that of fuel two-wheelers. By 2023 The subsidy rate launched by Indonesia is 7 million rupiah (approximately RMB 3,308) per vehicle, which will further narrow the gap between the initial cost and the total cost between electric two-wheelers and fuel two-wheelers, and increase consumers’ awareness of electric two-wheelers. Acceptance of two-wheelers.
With a mature industrial chain and rich operating experience, Chinese manufacturers are actively deploying in the Southeast Asian market
The pattern of China’s electric two-wheeled vehicle industry is gradually becoming clear, and leading manufacturers are ready to go overseas. After more than 20 years of development, China’s electric two-wheeler industry chain has become highly mature, and manufacturers have advantages in manufacturing capacity and cost control. After 2019, the implementation of the new national standard has enabled leading manufacturers such as Yadea and Emma to quickly launch new national standard models by virtue of their advantages in brand, production, and R&D, consolidate their brand advantages, and seize market share. The domestic industry structure has gradually become clear. At the same time, leading manufacturers are ready to go overseas.
Honda, the leader in electric motorcycles, has a slow pace of electrification, and its electric products and sales plan lag behind that of the leader in electric two-wheelers in China. Yadea’s competitors in Vietnam are mainly Japanese traditional motorcycle manufacturers represented by Honda and Yamaha, and Vietnamese local manufacturers represented by VinFast and Pega that focus on electric two-wheelers. In 2020, Yadea’s market share in Vietnam’s overall two-wheeler and electric two-wheeler market is only 0.7% and 8.6%, respectively. At present, Honda’s electric products are few, and they are mainly concentrated in the commercial field. The electric scooter BENLY e launched in 2020 and the electric motorcycle EM1 e launched in 2023 both use the battery swap solution equipped with a mobile battery pack. According to the electrification strategy disclosed on Honda Global’s official website, Honda plans to launch at least 10 electric two-wheeled vehicles globally by 2025, increase the sales of electric two-wheeled vehicles from 150,000 in 2021 to 1 million by 2026, and increase sales of electric two-wheeled vehicles by 2030. In 2022, Yadea’s sales of electric two-wheelers will reach 14 million, with over 140 product categories. In terms of product performance, the Honda EM1 e has a top speed of 45km/h and a battery life of 48km, which is relatively weak. Compared with Japanese models, we believe that Yadea, as the leader of electric two-wheelers in China, is expected to achieve cornering overtaking by virtue of its deep accumulation of electrification technology and the advantages of supporting industrial chains.
Yadea launched targeted products in the Southeast Asian market to enhance brand competitiveness. In the competition with local electric two-wheeler manufacturers in Southeast Asia, Yadea launched products with long battery life, large wheel diameter, and long wheelbase specially designed for the Vietnamese market, which can effectively meet the needs of local short-distance commuting, and are superior in product performance and cost price. Lose the local electric two-wheeler leader VinFast, helping Yadea speed up to catch up with rivals. According to the data from motorcycledata, Yadea’s sales in Vietnam will increase by 36.6% year-on-year in 2022. We believe that with the launch of new models such as the Voltguard, Fierider, and Keeness, Yadea will further improve its product matrix in Southeast Asia and use high-quality products to drive sales to continue to rise.
The success of Yadea in the Chinese market is inseparable from the expansion of sales channels. Consumers need offline stores to experience test drives, purchase new cars, and provide after-sales maintenance. Therefore, establishing sales channels and having enough stores to cover consumer groups is the key to the development of two-wheeler companies. Looking back at the development history of Yadea in China, the rapid growth of its sales and revenue is highly related to the expansion of the number of stores. According to the announcement of Yadea Holdings, in 2022, the number of Yadea stores will reach 32,000, and the CAGR in 2019-2022 will be 39%; the number of dealers will reach 4,041, and the CAGR in 2019-2022 will be 23%. China has achieved a 30% market share, consolidating its leading position in the industry.
Accelerate the deployment of sales channels in Southeast Asia, and efficiently promote products to potential local customers. According to the official website of Yadea Vietnam, as of 2023Q1, Yadea has more than 500 dealers in Vietnam, an increase of more than 60% compared with 306 at the end of 2021. According to news from PR Newswire, at the IIMS Indonesia International Auto Show in February 2023, Yadea reached a strategic cooperation with Indomobil, one of the largest automobile groups in Indonesia. Indomobil will act as the exclusive distributor of Yadea in Indonesia and provide it with a wide distribution network. Currently, the two parties have opened nearly 20 stores in Indonesia. Yadea’s first stores in Laos and Cambodia have also been put into operation. We expect that as Yadea’s sales network in Southeast Asia is becoming more and more perfect, it will provide strong support for the digestion of overseas production capacity and help the company achieve rapid growth in volume.
Southeast Asian consumers have similar preferences, providing reference for the design and promotion of electrified products
Scooters and underbone bikes are the two most common types of motorcycles in Southeast Asia, and the Indonesian market is dominated by scooters. The iconic feature of the scooter is that there is a wide pedal between the handlebar and the seat, which can rest your feet on it during driving. It is generally equipped with smaller wheels of about 10 inches and continuously variable speed; The beam car has no pedals and is more suitable for road surfaces. It is usually equipped with a small displacement engine and an automatic clutch that does not require manual operation. It is cheap, low fuel consumption, and excellent cost performance. According to AISI, scooters account for nearly 90 percent of motorcycle sales in Indonesia on the rise.
Underbone bikes and scooters are equally popular in Thailand and Vietnam, with high consumer acceptance. In Thailand, both scooters and underbone vehicles represented by Honda Wave are common types of motorcycles on the road. Although there is a trend of large displacement in the Thai market, motorcycles with a displacement of 125cc and below will still account for 2022. 75% of total sales. According to Statista, scooters account for about 40% of the Vietnamese market and are the best-selling motorcycle type. According to the Vietnam Association of Motorcycle Manufacturers (VAMM), Honda Vision (scooters) and Honda Wave Alpha ( Underbone) are the two best-selling motorcycles of 2022.
Post time: Aug-04-2023