ebikes

Another major electric bike maker exits the US market – What’s going on?

Micah Toll | Dec 2 2024 - 9:22 am PT

It’s happened again – not long after Yamaha announced that it was ending sales of its electric bicycles in the North American market, now the Swiss e-bike maker Stromer is pulling out of the US and Canada.

The company made the announcement late last month, adding to the growing list of high end e-bike makers pulling up stakes in the US market.

“Considering the current challenges in the bicycle industry and a significantly slower development of the North American market, the company has decided to take this step. Despite intensive efforts, a transfer of the business to a specialized distributor could not be realized. Nevertheless, myStromer AG remains confident and focused on its further international expansion plans and the continuous development of its product portfolio,” the company said in a statement.

Stromer’s electric bicycles have been popular among the ultra-premium end of the market, though that is a small niche that has never supported very high sales volume in North America.

With multiple models above US $10,000, the company catered to a wealthier demographic that prized the Swiss manufacturing and eschewed the many budget-friendly models that top best-seller lists in the US.

However, while that business model works well in Europe where electric bicycles are often treated like a primary vehicle for everyday transportation, American riders are more likely to use e-bikes sporadically, with many opting to retain a car as their primary mode of transportation. That’s not to say that plenty of Americans don’t commute only by e-bike. But compared to Europeans, they’re a smaller slice of the pie, and thus the lower-priced electric bike models handily outsell premium models in the US.

As the e-bike industry entered its rollercoaster period after the pandemic years, that slice of the pie was increasingly squeezed, making it harder for companies with premium offerings to justify the marketing and operational expenses in the North American market.

While many electric bike makers are feeling the squeeze, including some notable examples entering bankruptcies, others are still going strong.

Value-oriented companies like Lectric Ebikes have announced strong financial positions and continue to roll out new e-bike models.

The budget-end of the US electric bike market appears to be healthier, at least among established companies that have years of brand reputation to back up their entry-level prices.

Any way you slice it, the market for high-end electric bicycles certainly appears depressed in North America, and the exodus of premium brands that seem to continue doing fine in Europe only underscores the cultural divide in e-bike buying habits across the pond.