Following the surge in demand during the Covid-19 pandemic, the e-bike market has significantly slowed down, De Financieele Dagblad reported. As a result, bicycle manufacturers and retailers are now grappling with an excess inventory of e-bikes. In response, they are resorting to price reductions to attract increasingly discerning customers.
Bicycle manufacturers and retailers are currently offering significant discounts on electric bicycles, sometimes amounting to hundreds of euros. After the scarcity and price inflation during the Covid-19 pandemic, there is now a surplus of bicycles. According to the newspaper, price reductions vary by model and price category, with some discounts ranging from 200 to 400 euros or a 5 percent to 11 percent decrease. These discounts usually apply to less popular bikes or models that are being replaced.
“There is now a reverse market situation as during the pandemic,” ING analyst Dirk Mulder told the newspaper. “Then there was a lot of demand and little supply, now demand is lower and there is a lot of supply.”
During the Covid-19 crisis, the demand for e-bikes surged as cycling was one of the few activities allowed during lockdowns in the Netherlands. However, manufacturers faced supply chain issues, leading to a scarcity of bicycles. Retailers ordered large numbers of bicycles in anticipation of high demand.
However, post-pandemic, the market dynamics shifted rapidly with a weakened economy, record inflation levels, and cautious consumer behavior coupled with unfavorable weather conditions. All previous orders were delivered, leading to a significant surplus in inventories at manufacturers and retailers.
As the market for e-bikes is shifting from scarcity to surplus, consumers now have a broader range of choices. They are becoming more discerning, paying closer attention to comparisons and prices. As a result, several brands had to lower their prices, with some offering significant discounts. For example, the Batavus Finez E-Go Active Plus (N7) model’s price has dropped from €2899 to €2699, and some retailers offer even higher discounts. Online providers like Stella and Amslod have also reduced their prices, with discounts now higher than usual to meet sales targets.
According to Mulder, manufacturers are trying to decrease their inventories. “Inventories cost working capital. And interest rates have risen significantly in recent months, so holding inventories has become more expensive.” He told the newspaper that it would probably take at least another year, possibly longer, to reduce inventories to normal levels.
https://nltimes.nl/2023/08/03/e-bike-market-slows-leading-inventory-surplus-bargain-rates E-bike market slows, leading to inventory surplus and bargain rates