On the streets of Kenya, two-wheeled motorcycle taxis known as "boda-boda" and three-wheeled "tuk-tuks" glide silently through the bustling city, weaving effortlessly through traffic (see images 1-2). These electric motorcycles, which are largely manufactured in China, have become an integral part of urban life, transforming the daily routines of East Africans. For many Kenyans, these vehicles represent not just a mode of transport, but a more cost-effective and environmentally friendly future. And this scene is not limited to Kenya—similar developments are unfolding across the globe. From East Africa to the Philippines, Cuba, and Mexico, Chinese-made electric motorcycles are rapidly sweeping the world.
Earlier this year, a video featuring a "three-wheeler" from Yanshi, Henan, went viral on overseas social media platforms. The video, which included a "reverse caution" alert, instantly turned the vehicle into a "global sensation" on the streets of Europe and the United States (see image 3). In the Philippines, the Chinese company Umwa Technology from Wuxi has made significant inroads into the electric vehicle market, capturing over half of the local market share. Whether on the streets of Southeast Asia or in rural Africa, Chinese electric motorcycles are quickly winning over global markets with their high cost-effectiveness, reliability, and flexibility. From the traditional "three-wheeler" to today's electric motorcycles, Chinese manufacturing is quietly reshaping global transportation and driving a wave of "electric motorcycle exports" from China to the world.
Figure 1: Boda-boda
Figure 2: Affordable Asian tuk-tuks are transforming African cities. Source: The Economist
Figure 3: Earlier this year, domestic "three-wheelers" became a trending sensation on short video platforms. Source: Daily Economic News
Three Major Electric Motorcycle Markets: Understanding Local Players and Strategies for Targeted Engagement
According to the "2021-2027 Global and China Electric Motorcycle Market Status and Future Development Trends" report, it is estimated that the global electric motorcycle market will reach a scale of 69.3 billion yuan by 2026, with an annual growth rate of 6.5%. By 2027, China’s motorcycle production is projected to reach 22.5 million units, with electric motorcycles accounting for 30% of the total. Against the backdrop of rapid expansion in the global electric motorcycle (e-motorcycle) market, Chinese e-motorcycle companies are faced with both opportunities and challenges as they expand internationally. The three emerging markets of Africa, Asia, and Latin America each present unique demand structures and competitive landscapes. For Chinese companies aiming to establish a global presence, gaining an in-depth understanding of local players, infrastructure conditions, and the level of policy support in these regions is key to developing targeted strategies and ensuring successful market entry.
Africa: High Demand for Motorcycle Taxis, Battery Swap Networks Become Key
Although the electric motorcycle (e-motorcycle) market in Africa is still in its early stages, the demand for motorcycle taxis is enormous. In many cities and rural areas, motorcycles have become the dominant mode of transportation, and e-motorcycles hold significant potential in the motorcycle taxi service sector. Zed Motors in Benin has capitalized on this opportunity by focusing on electric motorcycle rental services and adopting a localized business model to enter the market. Olou Koucoi, co-founder of Zed Motors, believes that while the adoption rate of electric vehicles (EVs) in Africa is currently low, the prospects for electric motorcycles in the motorcycle taxi industry are promising. He emphasizes that the development of infrastructure, particularly the establishment of battery swapping stations, will be critical to the further growth of the African market. For Chinese companies, investing in or partnering with local enterprises to develop charging and battery-swapping facilities presents a valuable opportunity to enter the African market.
In Kenya, EVChaja is focusing on providing battery swapping services to motorcycle taxi drivers. John Msingo, Chief Revenue Officer at EVChaja, believes that motorcycle taxi drivers in Kenya are the primary potential users of electric motorcycles. However, the long charging times of electric vehicles limit operational efficiency. He argues that a battery swap network can enhance operational efficiency by enabling rapid battery exchanges, thereby accelerating the adoption of electric motorcycles. Currently, EVChaja has established numerous battery swapping stations, reducing waiting times for drivers and significantly improving rental efficiency.
Meanwhile, in West Africa, Spiro (formerly M-Auto) is expanding its battery swap stations in Benin and Togo. Despite facing funding challenges, their efforts provide valuable insights for Chinese e-motorcycle companies looking to expand internationally. The key to unlocking the African market lies in the improvement of supporting infrastructure.
Asia: Surge in Demand Driven by Policy Support, Local Manufacturing Becomes Key
The Asian market, especially in India and Southeast Asia, is one of the fastest-growing regions for electric motorcycles globally. The electric motorcycle market in India is highly competitive, with One Electric being one of the main players, focusing on low-cost, high-durability electric motorcycles that cater to Indian consumers' strong price sensitivity. In addition to the local brand Ola Electric, India’s traditional motorcycle giants Bajaj and Hero are also actively expanding into electric products. Gaurav Uppal, CEO of One Electric, believes that government subsidy policies have driven the demand for electric motorcycles. As local manufacturing capabilities improve, production costs are expected to decrease, which could further accelerate market penetration. For Chinese companies, the key to entering the Indian market lies in adapting to policy changes and leveraging local production to reduce costs.
Grevol, another Indian company focusing on electric motorcycles for logistics and delivery, is positioning itself in this niche market. CEO Jayant Gupta emphasizes the promising prospects of high-range electric motorcycles in the logistics sector. Grevol serves commercial clients who demand long range and stable performance. Therefore, Chinese companies with a competitive edge in electric motorcycle range, or those offering battery leasing and swapping services, are likely to have greater opportunities in this market.
Latin America: Weak Infrastructure, Growing Market Demand
Compared to Asia and Africa, the electric vehicle (EV) market in Latin America has developed at a slower pace, but its future potential cannot be overlooked. In Colombia, the industry association Andemos is actively promoting electric motorcycles (e-motorcycles) and clean energy transportation policies to foster the growth of the local e-motorcycle market. Currently, the application of e-motorcycles in the Latin American market is primarily concentrated in urban logistics and delivery sectors, especially among small and medium-sized delivery companies, where e-motorcycles are favored for their environmental benefits and cost-effectiveness.Valeria Morales, from Andemos, points out that the biggest challenge in promoting e-motorcycles in the region is the lack of charging infrastructure, which significantly impacts the daily use of these vehicles. However, she emphasizes that as urban populations increasingly demand green transportation, the outlook for e-motorcycle adoption is promising. Andemos President Oliverio García also believes that although there is insufficient policy support in Latin America, the market's demand potential is enormous, particularly with the rising demand for environmentally friendly transportation among younger consumers.For example, Colombian delivery company Rappi has begun using e-motorcycles in certain areas to reduce delivery costs, demonstrating the feasibility of e-motorcycles in the logistics sector. For Chinese companies looking to enter the Latin American market, collaborating with local logistics companies or conducting pilot projects is an effective way to explore the market and gradually integrate into the local e-motorcycle sector.
Overall, China's electric motorcycles are showing varied performance in global markets, with both opportunities and challenges. In Africa, there is a strong demand for motorcycle rentals, and with the improvement of infrastructure such as battery swap stations, the future growth potential is immense. In the Asian market, Chinese companies have gained an advantage, benefiting from policy support and leading battery technology, with vast room for expansion. In Latin America, although the market is still in its early stages and adoption has been slow, as charging infrastructure continues to develop, opportunities for Chinese electric motorcycles are gradually emerging, and the development prospects are promising. (Figure 4)
Figure 4: Overview of the Three Major Markets for Electric Motorcycle Export
"'Tricycles" is Popular, but Caution is Needed for Overseas Expansion
China's electric motorcycles are gaining traction in global markets, but companies must proceed with caution to achieve successful overseas expansion. To truly succeed in foreign markets, businesses must strike a balance between product promotion and regulatory compliance. The market demands, regulatory standards, and policy environments vary significantly across different countries, particularly when it comes to product safety, vehicle specifications, and usage regulations. Compliance requirements are often stringent, and oversight is rigorous. Companies looking to expand abroad must not only understand the local consumer needs but also thoroughly grasp the local regulatory requirements in order to avoid risks such as product seizures and damage to brand reputation caused by regulatory conflicts. Successful international expansion goes beyond merely shipping products to overseas markets; it also requires rooting the business locally, ensuring that product design, manufacturing, and marketing align with local standards.
Taking the Mexican market as an example, although there is strong demand for electric motorcycles, the promotion of these products still faces significant policy risks due to outdated traffic regulations. Mexico City is one of the most congested cities in the world, and many residents consider electric lightweight motorcycles (e-motorcycles) as their preferred commuting option. These vehicles are flexible, affordable, and can effectively bypass traffic jams, significantly reducing commuting time (Figure 5).However, despite the high market demand, the promotion of e-motorcycles in Mexico remains challenging. Mexico's traffic regulations have not yet clearly defined the driving requirements, operational zones, or registration procedures for e-motorcycles, and there is even a lack of detailed safety standards. For consumers, the regulatory vacuum creates uncertainty during use, while for manufacturers, the ambiguity in market access complicates product design and promotion efforts. This legal uncertainty not only affects the local promotion of the product but also exposes companies to unforeseen market risks. For Chinese companies looking to enter the Mexican market, it is especially important to establish internal standards and compliance plans in advance to mitigate potential legal risks.
Figure 5: Electric Lightweight Motorcycles in Mexico City, Source: Rest of World
In Europe, where regulations are more developed, compliance requirements are notably stricter. Unlike Mexico, the Netherlands has a relatively mature regulatory framework for electric transportation. While the Netherlands offers substantial support for electric mobility, its legal provisions are precise and thorough, covering safety standards, battery stability, vehicle speed limits, and more. Recently, Dutch customs seized approximately 3,500 Chinese-made "fat tire" electric bicycles on the grounds that they did not meet local electric bicycle standards. This model, popular among young people in the Netherlands, failed to comply with safety and technical requirements, leading to both the seizure of the bikes and the imposition of substantial fines.
On one hand, Dutch regulations include detailed technical requirements, such as those regarding battery stability and safety. Failure to meet these standards can result in product confiscation and significant penalties. On the other hand, this incident highlights the stark differences in market definitions and regulatory requirements for motorcycles, particularly in relation to engine displacement. In Europe, motorcycles with engine displacements of 150cc or below are typically classified as small-displacement, designed for short-distance travel and urban commuting. In Latin America, the threshold for small-displacement motorcycles is 125cc, a classification based on similar urban commuting needs. In Asia, the range of 125cc to 150cc is considered the mainstream for small-displacement motorcycles, adapted to the higher population density and frequent short trips typical of the region.
In Africa, however, different tax structures apply, with 50cc being the starting point for tariff classification. Given the high frequency of motorcycle use and the diverse road conditions in Africa, there is strong demand for small-displacement motorcycles. As a result, importers must carefully balance displacement and taxes. These varying displacement standards not only influence motorcycle classification but also impact market acceptance and suitability. Consequently, different terminologies have emerged across regions: small-displacement motorcycles are often referred to as "mopeds" or "scooters," while larger ones are categorized as "motorcycles" (Figure 6). Understanding these traditional classifications of fuel-powered motorcycles is crucial for electric motorcycle manufacturers seeking to navigate international markets, better aligning with consumer preferences and market demands.
Figure 6: A Diagram to Understand the Classification of Electric Motorcycles, Electric Bicycles, and Electric Light Motorcycles. Source: The Paper
Chinese electric motorcycle companies face a common challenge in adapting to the diverse legal and regulatory environments across different countries. To steadily expand in international markets, these companies must conduct thorough regulatory research before entering new markets, ensuring that their products comply with all local safety and technical standards. Even in regions where regulations are still developing, companies should have a proactive compliance mindset and prepare in advance for legal conformity. Additionally, establishing dedicated compliance teams to oversee the entire process, from product design to market promotion, can effectively reduce legal risks. By building strong relationships with local governments, industry associations, and other stakeholders, companies can gain policy support and stay updated on regulatory changes, laying a solid foundation for international expansion.
According to EqualOcean, Chinese electric motorcycle companies must not only be keen on market opportunities but also have the resilience to navigate regulatory challenges. For example, while the Mexican market shows strong demand, the lack of clear legal frameworks introduces uncertainty, while the Dutch market offers clear regulations but with strict requirements. Only by ensuring that product design meets standards and marketing complies with regulations can Chinese electric motorcycle companies achieve sustainable growth in global markets and provide consumers worldwide with a convenient and environmentally friendly transportation option.