An electric bicycle (e-bike) is a vehicle that features an integrated electric motor drive system which can be used for propulsion, supplementing traditional pedalling. The worldwide e-bike market experienced a rapid surge in sales of 48.2% in 2022. In several European countries, e-bikes now account for nearly two in five of all bicycle sales, capturing an increasing market share of urban transport.
Various factors stimulated the sales of e-bikes and some also helped to reduce their retail prices in 2022. One major factor was environmental consciousness and a desire for healthier lifestyles. An e-bike is increasingly viewed by urban commuters as a cleaner, more efficient alternative to cars and crowded public transport. Upgrading is also common, with consumers seeking newer models with longer battery ranges and smart integration features. Other supply-side factors include significant economies of scale in battery production, advancements in automated manufacturing, and the entry of new brands and technology firms into the competitive market.
E-bikes are typically assembled using specialized lithium-ion cells and mid-drive motors produced in high-capacity Asian factories. Industry analysts suggest that production costs remain highly competitive due to specialized supply chain clustering and lower labor costs in these manufacturing hubs.
However, some consumer groups have raised concerns regarding the environmental impacts and working standards in the extraction of raw materials like cobalt and lithium used to make the battery packs.
With the help of the information in Extract E, explain two possible reasons for the change in the sales of e-bikes in 2022.
