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emerging markets

An electric vehicle (EV), also referred to as an electric drive vehicle, first came into existence in the mid-19th century. Back then electricity was among the preferred methods for automobile propulsion, providing a level of comfort and ease of operation that could not be achieved by gasoline cars in that era.

At the beginning of the 21st century, concerns increased regarding the environmental impact of the petroleum-based transportation infrastructure, alarming global warming issues and climate change. Further the spectre of peak oil and rising fuel prices led to renewed interest in an electric transportation infrastructure. As such, electric vehicles have become increasingly popular globally – especially electric bikes and electric scooters.

A few global stats….

• In China, over 98,000 electric scooters were sold in 1997 and this figure grew to over 25 million in 2005.
• The industry estimates that over 65 million electric bikes and scooters are currently on the roads worldwide.
• In Europe, the Electric bicycle industry is also booming. It is estimated 250,000 e-bikes were sold in 2008 and this number is set to rise dramatically.
• Trade magazine ‘SAZ’ reported that Germans spend more money on e-bikes than any other bike category. Industry experts predict between 1.5 and 3.25 million electric bicycle sales per year by 2018 in Germany alone.
• The Dutch Bicycle Dealer Association reported that the e-Bike sales figure in Holland for the year 2008 amounted to 120,000 units. This significant figure proves the electric vehicle category is growing to become a substantial sector of the market, now holding close to 10% market share.

“Bicycle dealers who don’t handle electric bikes will see a significant decrease in turnover, while dealers who become experts in electric bikes have a unique chance to increase their turnover and profit,”
according to Extra Energy’s Hannes Neupert.

There are many reasons for the huge increase in demand in the new ‘EV’ industry these include:

• The emerging market is driven by cost efficiency and energy efficiency.
• The existing electric infrastructure is already established throughout the world and utilisation of this infrastructure can easily be extended to accommodate electric vehicles.
• The way we commute is no longer determined by how fast one can travel from 0-100 km, but by how cost efficiently one can safely travel from Point A to B.
• Unprecedented climate change and pollution also drives the world to seek transport alternatives.