If you're looking for signs that the post-pandemic e-bike market shakeup in the US is still well underway, look no further than Yamaha's latest move.
According to Electrek, the Japanese giant announced in a letter to its dealers that it would be withdrawing from the e-bike business in the United States by the end of the year.
“As you know, the combination of a post-Covid oversupply across the bicycle industry, coupled with a significant slowdown in the market, has resulted in a particularly challenging business environment in which it is extremely difficult to achieve a sustainable business model,” Yamaha said it in the letter.
Given these market conditions, the company says it has decided to exit the U.S. e-bike business and cease wholesale unit sales at the end of 2024.
Yamaha introduced the world's first electrically assisted bicycle motor in 1993. But it wasn't until 2018 that they entered the US e-bike market with a range of all-road, mountain and fitness/lifestyle e-bikes. Four brand new models were offered in the US this year: Urban Rush, Cross Connect, Cross Core and YDX Torc.
In order to reduce its inventory in the US, Yamaha informed its dealers that it is expanding its fan promotion program, where customers can receive up to 60% discount on the purchase of a new Yamaha e-bike. The program is extended through June 30, 2025 and the company will continue to offer parts, service and customer support with its five-year warranty in the United States
According to Electrek, Yamaha's e-bikes featured higher-quality components, more elaborate frames, and in-house motors, which tended to place them in the upper price range in the US market.
But as Yamaha itself explained, the main reason for its decision appears to be the excess supply that followed a boom in e-bike demand caused by the Covid-19 pandemic.
In another sign of market restructuring, Juiced Bikes, a pioneer in the US direct-to-consumer e-bike market, sold at auction last month for $1.2 million.
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