If you were looking for clues that the post-pandemic ebike market reshuffle remains in full swing in the U.S., look no further than the latest move by Yamaha.
In a letter to its dealers, the giant Japanese conglomerate announced it will pull-out of the ebike business in the U.S. by the end of the year, according to Electrek.
“As you know, the combination of a post-Covid oversupply within the entire bicycle industry, coupled with a significant softening of the market, has resulted in a particularly challenging business environment where it is extremely difficult to achieve a sustainable business model,” Yamaha says in the letter.
Given these market conditions, the company says it decided to withdraw from the U.S. ebike business and to cease wholesaling units at the end of 2024.
Yamaha introduced the world’s first electric power-assist bicycle motor in 1993. But it wasn’t until 2018 that it entered the U.S. ebike market with a number of all-road, mountain, and fitness/lifestyle ebikes. That year, it offered four brand new models in the U.S.: Urban Rush, Cross Connect, Cross Core and YDX Torc.
In order to sell down its U.S. inventory, Yamaha told its dealers that it’s extending its “Fan Promotion” program, where customers can receive up to 60% off their purchase of a new Yamaha ebike. The program will be extended until June 30, 2025 and the company will continue to provide parts, service and customer support with its 5-year warranty in the U.S.
According to Electrek, Yamaha’s ebikes featured higher-end components, elaborate frames and in-house motors, which tended to put them within a premium price range in the U.S. market.
But as Yamaha itself explained, it appears that the main motive for its decision is the supply overhang which followed a Covid-pandemic boom in ebike demand.
In another sign of the market’s reshuffle, Juiced Bikes, a pioneer in the U.S. direct-to-consumer e-bike market, was last month sold at auction for $1.2 million.
