Temporarily Stalled, Yadea "Dares" to Venture Overseas
In recent years, electric two-wheelers have become one of the favored modes of transportation among contemporary consumers, thanks to their environmental friendliness, convenience, and cost-effectiveness. As consumer demand grows, the electric two-wheeler market continues to expand, giving rise to many well-known brands, with Yadea being one of them.
In fact, among numerous electric two-wheeler brands, Yadea has consistently been at the forefront in terms of sales volume, earning it the reputation of the "King of Electric Scooters." Data indicates that as of 2022, Yadea is the largest electric two-wheeler brand in China, holding approximately 25% of the domestic market share. It is evident that Yadea is a truly outstanding "top student" in the electric two-wheeler industry.
Has the performance of electric two-wheelers slowed down, making them less appealing?
With the arrival of a new financial reporting season, major domestic two-wheeler electric vehicle companies have successively submitted their performance reports for the first half of 2024. Among them, Yadea ranked first with a revenue scale of 14.414 billion yuan.
However, even with this achievement, Yadea still experienced a slowdown in performance. Financial reports show that in the first half of 2024, Yadea's revenue was 14.414 billion yuan, a year-on-year decrease of 15.4%; the net profit attributable to the parent company was 1.034 billion yuan, a year-on-year decrease of 12.9%. This marks the first time in five years that Yadea has seen a year-on-year decline in performance during the first half of the year. The decline in Yadea's performance is closely related to the drop in electric vehicle sales. Data shows that in the first half of 2024, Yadea's total sales volume was 6.38 million units, compared to 8.21 million units in the same period last year, a year-on-year decrease of 22.26%.
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On one hand, the demand for new national standard replacements has been essentially met, leading to a weakening consumer demand for replacement purchases. Previously, the implementation of the new national standard provided clear regulations on the maximum speed, overall quality, and pedaling capabilities of two-wheeler electric vehicles, resulting in a significant replacement demand as a large number of non-compliant electric two-wheelers needed to be replaced. Today, the demand for new national standard replacements has been essentially satisfied, and the replacement bonus period is gradually coming to an end, affecting the sales of two-wheeler electric vehicle brands like Yadea to varying degrees.
On the other hand, the domestic two-wheeler electric vehicle market has become saturated, with weakening market demand. Data shows that by the end of 2023, the social stock of electric bicycles in China had exceeded 350 million units, equivalent to one two-wheeler electric vehicle for every four people in the country. Currently, the entire domestic two-wheeler electric vehicle market is gradually entering a stage of competition based on existing stock. At the same time, some poor-quality products on the market have also affected consumers' perception of two-wheeler electric vehicles, ultimately impacting their sales volume. The natural decrease in consumer demand for two-wheeler electric vehicle products will also affect Yadea's performance.
The high-end business is not easy to conduct.
Currently, competition in the two-wheeler electric vehicle market is becoming increasingly intense, and the entire industry has entered a stage of competition based on existing stock. In order to break free from the quagmire of product homogenization and gain more profit, two-wheeler electric vehicle brands have begun to explore high-end and intelligent options, with Yadea being no exception. Yadea has even launched a high-end brand, VFLY, to target the high-end market. However, the high-end market business is not easy to conduct. According to the "2023 China Two-Wheeler Electric Vehicle Industry White Paper" released by iResearch, in the market for two-wheeler electric vehicles priced above 7,000 yuan, Yadea's market share is only 4.1%.
On one hand, Yadea has long been known for its high cost-performance ratio, and consumers have formed a fixed brand impression, making it difficult for consumers to accept its high-end brand. Yadea has always been synonymous with affordability and high cost-performance ratio, thanks to which Yadea's two-wheeler electric vehicle products have been favored by consumers and have led in sales volume. According to the "2024 China Two-Wheeler Electric Vehicle Industry Research Report" released by iResearch, offline research data from the top 22 cities in terms of sales volume show that in the price range below 4,000 yuan, Yadea, AIMA, andTAILG occupy the top three positions with sales exceeding one million units. Affected by this, consumers have formed a fixed impression of Yadea. In order to increase its presence in the high-end market, Yadea launched the high-end travel sub-brand VFLY in 2021. However, due to the solidification of brand image, coupled with high prices, consumer acceptance of Yadea's high-end two-wheeler electric vehicle products has always been low, affecting Yadea's development in the high-end market.On the other hand, new forces in the two-wheeled electric vehicle market such as Ninebot and Niu Technologies are also making efforts in the high-end market, and their intelligence advantages make their development in the high-end market smoother. Unlike Yadea, new force brands like Ninebot and Niu Technologies focus on intelligence, and intelligence is the core selling point of the high-end two-wheeled electric vehicle market. Therefore, Ninebot and Niu Technologies can be said to have an inherent advantage in expanding the high-end electric vehicle market.
With strong intelligent configurations, Ninebot and Niu Technologies have been able to develop rapidly in the high-end electric vehicle market. According to the "2023 China Two-Wheeled Electric Vehicle Industry White Paper" released by iResearch, in the two-wheeled electric vehicle market above 7,000 yuan, the market share of Ninebot and Niu is 51.7% and 43.8% respectively. Faced with such strong competitors, Yadea's progress in high-end has become slower.
Not willing to lag behind, Yadea seeks change by going overseas.
Although Yadea's revenue scale is still in the forefront among many two-wheeled electric vehicle manufacturers, the "decline" in sales also brings a shadow to Yadea. At the same time, other two-wheeled electric vehicle manufacturers are still running forward, and the pressure faced by Yadea is self-evident. In order to continue to maintain the growth trend, Yadea has set its sights on the overseas market.
Firstly, the concept of environmental protection and low carbon is gradually taking root in people's hearts, and overseas consumers have a huge demand for two-wheeled electric vehicles. Yadea's overseas expansion can find new growth. In recent years, practicing the concept of low carbon and environmental protection, and green travel has long become a global consensus. Coupled with the introduction of policies and subsidies related to low-carbon travel in various countries, two-wheeled electric vehicles have gradually been recognized by overseas consumers. With a broad market and a relatively low penetration rate, the overseas market has naturally become the key direction for domestic two-wheeled electric vehicle companies to develop. Under this background, Yadea is also accelerating its layout in the overseas market.
Secondly, Yadea has built a comprehensive operation system in the overseas market, which is more conducive to the expansion of its overseas business. In fact, Yadea did not start to explore the overseas market in recent years. Its exploration of the overseas market can be traced back to 2007. After more than ten years of development, Yadea has built a comprehensive service network in the overseas market. It is reported that Yadea has established five operation centers globally, built eight global intelligent production and research bases, and has 40,000 terminal stores all over the world, forming a strong global service network. The construction of a comprehensive service network has also laid a solid foundation for Yadea to develop the overseas market.
However, although the overseas market is large, it is not easy to expand. Even if Yadea has a foundation in the overseas market, it cannot be taken lightly. It is worth noting that at present, whether it is the domestic market or the overseas market, the two-wheeled electric vehicle field is playing a pursuit game, and Yadea still needs to be steady and focus on product quality, performance, and service. After all, no matter when, the product is always the most concerned by consumers.
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