on Dec 4th, 2008Electric Bikes Gaining Traction
The number of e-bikes sold in the U.S. is expected to reach a record 170,000 units this year as big retailers get in on the action
A decade ago, Frank Jamerson helped develop General Motors’ (GM) first electric car, the EV1, only to see interest in the fuel-efficient vehicle fizzle within years. He’s determined to ensure another pet project, the electric bike, doesn’t suffer the same fate.
So far, so good for Jamerson, a retired 81-year-old physicist who can be seen zipping around his hometown of Naples, Fla., on an electric bike.
Amid rising fuel costs in recent years, baby boomers, commuters, and college students have begun biking more often. In the U.S. and Western Europe, the fastest-growing niche of the bicycle market is electric bikes, a category that includes motorized vehicles of various stripes—from bikes to pedicabs to tricycles—that range in price from $350 to $14,000.
Wal-Mart Upping the Ante
The number of e-bikes is likely to rise to a record 170,000 units in the U.S. this year, from 120,000 last year, says Jamerson, who’s long compiled research on the industry. The U.S. market pales in comparison with China, where there are 20 million e-bikes sold annually. But while China, the largest e-biking market, has stagnated, sales are on the upswing in the U.S.
E-biking is getting a jolt as big retailers get in on a market once dominated by specialty bike shops. Earlier this year, Wal-Mart (WMT) began selling bicycles from Currie Technologies, the largest maker of e-bikes in the U.S., in 145 stores. More recently, the world’s largest retailer expanded availability to more than 450 locations.
By next spring, Wal-Mart plans to carry the gadgets in more than 850 stores, says Larry Pizzi, president of Currie, based in Chatsworth, Calif. Toys “R” Us plans to expand its distribution of the e-bikes tenfold, to 550 stores. “This has been the most rapid growth year in the company’s [10-year] history,” Pizzi says. “We’ve seen dramatically increased interest thanks to financial motivations, environmental concerns. And baby boomers are getting older [and need some help getting up that hill].” Target (TGT) also sells e-bikes.
Driven by Gas Prices
How long can the e-biking boom last? The dramatic decline in gas prices in recent months has lessened the urgency for alternative transportation for some commuters. A credit crisis is making it harder for consumers to borrow. Eric Sundin, president of Electric Bikes Northwest & California, one of the largest distributors of high-end electric bikes from the likes of Giant Bicycle in the country, says he’s noticed a slowdown in mid-October. He notes that late autumn is typically a slow season for the industry. Still, “if gas prices come down, people’s interest becomes more lukewarm,” he says, adding that bicycle purchases are “very largely correlated to disposable income… [More]
[Via Business Week]
