The most important factor in the growth of the Australian e-bike market

The most important factor in the growth of the Australian e-bike market

What is becoming an important factor in the growth of the e-bike market in Australia?

Fuel prices continue to be a significant factor in the growth of the e-bike market in Australia. Petrol prices in Brisbane, Australia hit an all-time high at the end of September 2023 and remain well above $2 per litre nationwide.

The high price of gasoline makes traveling by car an expensive burden, and you also need to pay for high auto insurance and maintenance costs.

Rising travel costs have become a limiting barrier to car use, and many Australians are starting to look for new ways to travel instead of cars, and e-bikes, which are cheaper and more convenient than cars, have become a new choice for many Australians.

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    Market choices under multiple options

    A study by the Australian Automobile Association found that transportation costs for households in a number of Australia’s capital cities have increased by 8.8% in 2022, and by 10.1% in remote areas, far outpacing the overall inflation rate of 6%, with rising transportation costs leading directly to a decline in car use.

    One commuter from Australia, Francesca, said she currently uses e-bikes for most of her daily commute, uses car-sharing companies’ services in addition to her own car, and subscribes to a $59-a-week subscription for an e-bike from Lug+Carrie rental company. You can check the electric bike rentals near me for your reference.

    Electric vehicles have been largely unaffected by the soaring cost of petrol, and sales have risen sharply compared to the same period last year, with pure electric vehicle (EV) sales in Australia more than tripling in the first nine months of 2023.

    Market choices under multiple options

    But with high barriers to entry, with the EV base price starting at $40,000, and with the second-hand market just starting to take off, e-bikes have become a low-cost alternative to more fuel-intensive vehicles at a relatively affordable cost. How to choose the second hand bikes?

    As a result, the relatively affordable e-bike has become a low-cost alternative to fuel-guzzling cars, and as e-bike usage has grown, a number of rental companies have emerged to provide a lower-cost option for short-term users.

    Continuous growth of the e-bike market

    Since 2017, states and cities have passed uniform laws on the use of e-bikes, and the Australian e-bike market has begun to grow steadily, with sales roughly quintupling by 2022, and more than 100,000 e-bikes sold by 2022, with the family and freight markets seeing particularly significant growth, and demand for models with child seats increasing after the abandonment of car mobility.

    Growth is particularly strong in the family and freight markets, where demand for models with child seats has increased following the abandonment of car travel, and e-bike sales have continued to grow.

    In Australia, an e-bike costs around $2,000 for an entry-level model, $5,000 for a cargo model that can be used for family travel, and up to $20,000 for a premium model.

    Some of the higher-end models are more expensive, but not only are they less expensive to buy than cars, they are also quite inexpensive to use, with the average cost of charging a bike being around 15 cents.

    Continuous growth of the e-bike market

    The average cost of charging a bicycle is about 15 cents, there are no parking fees, and bicycles are less expensive to operate than cars or public transportation.

    However, the car is still the best choice for long-distance travel, and e-bikes are most popular in suburban areas between 5km and 15km from the CBD, making them one of the main modes of diversified travel. You can also check the top 5 long range electric bike for your reference.

    In addition to economic considerations, leisure and exercise are the main reasons why people start cycling, and the sport and fitness attributes of bicycles allow for the expansion of use scenarios beyond transportation.

    Calls for improved infrastructure and introduction of subsidies

    Australia has strong subsidies for electric vehicles, and the government hopes to reduce carbon emissions by encouraging the use of electric vehicles.

    Queensland increased the subsidy for electric vehicles from AUD3,000 to AUD6,000 in April this year, and at the same time, the Australian federal government enacted a tax exemption policy and eliminated the 5% import duty, but it did not provide similar subsidies for e-bikes, which are comparable to those in Europe and the United States.

    Compared to Europe and the United States, Australia lacks corresponding subsidies for e-bikes.

    As the popularity and use of e-bikes grows, there are increasing calls for bike lanes and subsidies.

    A Queensland government spokesman for transport and major roads said: “E-bikes are not currently being considered, but from 2022 onwards AUD268.8 million will be spent on infrastructure, including bike lanes, shared use paths and bridges, to encourage e-bikes to use roads and bridges, and the government is looking at future incentives to encourage e-bikes to test and purchase.” How to test an e-bike battery?

    Calls for improved infrastructure and introduction of subsidies

    Norwegian research has examined the impact of a subsidy program in Oslo on willingness to buy, with nearly half of homeowners saying that whether or not they were subsidized greatly influenced their decision, proving that subsidies can directly stimulate increased sales in the market.

    Tasmania is the first region in Australia to offer an e-bike subsidy program, with the government saying in September it would invest $1.2 million to subsidize consumer purchases of e-bikes, electric scooters and electric cars.

    Options for delivering the e-bike program include a try-before-you-buy program, purchasing assistance, and a direct subsidy, which, according to the Micro Mobility Report, will take the form of a subsidy that will be announced in November.

    Announced, Tasmania’s move also opens floodgates for e-bike subsidies in Australia.

    Compared to Europe and the United States, Australia’s e-bike market is lagging behind, but has great potential.

    At present, the penetration rate of e-bikes is only about 10%, and with the government’s improvement of bicycle infrastructure and the provision of product subsidies, the development of e-bikes will grow further, and in the future, Australia may become an important growth market for e-bikes worldwide.

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