Niu technologies, a chinese manufacturer of electric scooters, stated it's going to expand its presence in europe together with united states after need for socially-distanced transport as a result of covid-19 helped boost its shares by above 400 %.
The business, that was started in 2014 and noted on new yorks nasdaq four many years later, features risen up to become the quickest developing escooter brand name in asia.
Inside third quarter, beijing-based nius escooter sales rose 68 % year on year to 250,889 products, capping down a turnround from the start of the season whenever sales fell. investor enthusiasm features forced its stock up a lot more than 400 per cent since march and its marketplace capitalisation today surpasses $2bn. very early people included ggv capital, sinovation venturesandsequoia.
Only about 2 per cent of nius device sales are outside asia, and chief executive li yan stated that company would accelerate its worldwide expansion programs.
We've international ambitions, mr li told the financial instances, arguing that a business increase in sales of electric two-wheelers in europe and also the united states would last beyond the pandemic. our company is cautiously upbeat that a 3rd of nius sales may be in europe and also the us by 2025.
Niu pitches its moped-style escooters as more efficient and eco-friendly than electric cars for specific commuters, given they use about one-tenth of a vehicles electric batteries. like pedal bicycles, international product sales of which have actually surged throughout the covid-19 crisis, escooters allow cyclists to keep up a safe social distance from 1 another.
Last year, the worldwide escooter market had been well worth about $18.6bn, with three-quarters of that in asia, according to us-based grand see research. the worldwide market is likely to more than dual by 2030 to $42bn with north america growing at 13 percent per year.
Niu thinks that development in european countries and the united states will undoubtedly be driven by breakthroughs in battery technology, policies promoting electrification and also the increase of provided cycle platforms.
In european countries as well as the us, niu said its increasing its network greater than 100 stores, progressively offering direct in place of via dealers, and has registered into partnerships with moped sharing platforms.
Element of nius expansion strategy in european countries together with united states involves offering new automobiles, such as for instance a power motor-assisted bicycle and an electrical motorbike with a premier rate of 100 kilometers per hour (160km per hour).
Nius early choice to make use of lithium-ion electric batteries in place of cheaper lead-acid choices employed by many rivals in china may possibly also pay off once the technology becomes the industry standard, said wang rui, an analyst at equal ocean, a beijing-based consultancy.
But experts believe nius us ambitions could be constrained by minimal opportunities outside big places such nyc and bay area, plus rigid regulations and concerns over roadway security.
Even though, mr li thinks the rise of inner-city-focused sharing systems like revel, nius us partner, can propel uptake. people are just starting to note that you will find choices to driving a car for city commutes, he said.