The Indian bicycle market stands at 0.9 billion USD with 15 million bikes per year. The Indian electric bicycles market growth, a fraction of the European market, is worth 0.1 billion USD. There was an estimated value of USD 8 billion in the European bicycle market in 2020; by 2026, that figure is predicted to rise to USD 17 billion at a CAGR of 13%.
Hero & Yamaha to jointly establish electric cycle drive units
Yamaha Motor and Hero Motors Limited have struck an agreement to establish a joint enterprise manufacturing electric bicycles hub-mounted drive units.
Hero Motors will hold a 90% share in the joint venture while Yamaha Motor will have a 10%. An initial investment of Rs. 22 crores would be made in the venture. It will be built in Ludhiana, Punjab, and will begin production in November 2022.
Ampler Bikes raises €7.4M in equity funding
Ampler Bikes, an Estonian, Northern European company that develops and sells light e-bikes, has secured a €7.4m equity fundraising round. This funding will be used for the expansion and business reach of the company, establishing the Netherlands and Switzerland alongside Germany as the next core markets by creating new showrooms and service facilities.
Electric bikes back up to 30%, capped at the incentive of $1,500 in the US
A planned tax credit in the United States for new electric bicycle purchases has been increased to a full 30%. With increasing sales of electric bicycles, several members of the US Congress have proposed a tax credit earlier this year to help to cut the costs of electric bicycles that are more costly than pedal bikes.
The plan of President Biden ‘Build Back Better’ has returned to its full 30 percent of the incentive proposed. This would only apply for electric bicycle prices of under $8000, with a maximum incentive of $1,500.
Based on the individual’s salary, this will be a progressive phase-out plan. The credit would begin to phase out for taxpayers earning more than $75,000, however, this threshold rises to $112,500 for heads of household and $150,000 for married couples filing jointly.
Rad Power Bikes
The electric bicycle manufacturer Rad Power Bikes in North America announced the addition of a major new investment round to the funding of this company, adding $154 million more. In February, this company had already secured a record-breaking $150 million.
This money is going to be used for production in North America and Europe. It will be utilized for product development as well as to further improve its existing services, such as RadMobile, in the future. It will also diversify its production and supply channels.