In 2025, China’s electric two-wheeled vehicle market ushered in an unprecedented wave of start-up brands. From Internet cross-border players to traditional industry chain transformers, to innovative teams focusing on niche markets, why are these new forces emerging in such a concentrated manner? The driving force behind this is not only the expansion of market capacity, but also an industrial transformation jointly driven by policies, technology, consumer demand and capital.

Market Potential: Trillion-dollar Blue Ocean and New National Standard Dividends

The annual sales volume of China’s electric two-wheeled vehicle market has reached nearly 50 million, with a stock of over 400 million. The implementation of the new national standard “Electric Bicycle Safety Technical Specification GB 17761-2024)” in 2025 has accelerated the reshuffle of the industry. Traditional lead-acid battery models are facing elimination, and the demand for lithium battery replacement has exploded. It is predicted that the market size will exceed 150 billion yuan in 2025 and is expected to reach 500 billion yuan in 2030, with an average annual compound growth rate of more than 15%. The huge demand for stock replacement, coupled with the incremental space of new scenarios such as shared travel and food delivery logistics, provides a window period for start-up brands to enter the market.

In addition, policy dividends continue to be released. The government has reduced consumers’ car purchase costs and usage thresholds through “old for new” subsidies, tax exemptions and charging infrastructure investment. For example, the national subsidy policy after deepening in 2025 directly drives the penetration rate of mid-to-high-end models, and under the goal of “carbon neutrality”, electric two-wheeled vehicles, as the core carrier of low-carbon transportation, have received more policy support.

Consumption Upgrade: Young People Reshape Demand Logic

The rise of young people in new-tier cities is rewriting the rules of the market. Their demand for electric two-wheelers has been upgraded from “a means of transportation” to “a personalized travel solution.” Data shows that the sales of mid-to-high-end models above 3,000 yuan have increased significantly, and functions such as smart navigation, keyless start, and NFC unlocking have become standard.

At the same time, the needs of B-end users such as food delivery riders have given rise to segmented tracks. Riders ride more than 300 kilometers a day on average, and their rigid demands for battery life, safety, and fast battery replacement are not fully met by traditional brands. Startup brands such as HARLEY-DAVIDSON target this group and launch special models equipped with active braking and long-range batteries to fill the market gap.

Technological Revolution: Lowering of Barriers and Opportunities for Differentiation

Breakthroughs in lithium battery technology are the core driver of the rise of start-up brands. In 2025, the energy density of lithium iron phosphate batteries was increased to 150Wh/kg, the range exceeded 100 kilometers, and the cost was reduced by 30% compared with three years ago. Upstream companies such as BYD have opened up automotive-grade battery technology, enabling start-up brands to obtain high-performance supply chain resources at a lower cost. In addition, the modularization and popularization of intelligent technologies (such as BMS battery management systems and Internet of Things modules) allow small and medium-sized brands to achieve product innovation without investing heavily in research and development.

The maturity of lightweight materials (such as carbon fiber and aluminum alloy) and flexible manufacturing technologies has further lowered the production threshold. Start-ups can quickly launch differentiated products through the OEM model, such as lightweight models designed for women, or cargo-carrying electric tricycles for the rural market.

Industry Pain Points: The “Gap Market” Left by Traditional Giants

Although the leading traditional electric two-wheel brands occupy more than 60% of the market share, a considerable number of brands have serious product homogeneity, which makes it difficult to cover long-tail demand, and they rely on channels and price wars, while lagging behind in innovation in areas such as smart interaction. Startup brands rely on flexible mechanisms to quickly respond to market demand and find their own incremental space in market gaps.

Capital Catalysis: Resonance between Industrial Chain and Traffic Dividend

The investment and financing scale of the electric two-wheeled vehicle industry is expected to reach 30 billion yuan in 2025, and capital will flow intensively into the fields of technological innovation and model innovation. Internet platforms (such as Kuaishou and Didi) have reduced the cost of acquiring new brands through traffic support and digital marketing. For example, in Kuaishou’s local life channel, start-up brands achieved a 287% month-on-month GMV growth rate through short videos and live broadcasts, quickly establishing brand awareness. At the same time, the rise of the sharing economy and battery swap model has also provided start-up with the possibility of light asset operation.

The electric two-wheeled vehicle market in 2025 has shifted from “manufacturing-driven” to “demand+ technology-driven”. The explosion of start-up brands is not accidental, but the result of the combined effects of policy dividends, consumption upgrades, technological equality and capital boost. In the future, the industry will present a pattern of “head concentration and long tail coexistence”. Traditional giants rely on scale to consolidate their base, while start-up brands build moats in the market segments through precise positioning and rapid iteration.

Source: ELECTRIC MOTORCYCLES COMMUNE