Specializing in motors for electric bicycles, the manufacturer Bafang was also hit hard by the crisis which shook the cycle industry in 2023. Its net profit plummeted, as did its sales volumes.
It’s a fact: the year 2023 was tough for the cycle sector. Inflation, falling demand, geopolitical uncertainties and overstocking have weighed down the finances of multiple companies, leading to a cascade of bankruptcies and other legal proceedings. The French market has not been spared, as evidenced by the gloomy figures from the 2023 Cycle Observatory.
The financial balance sheets of large groups are also good indicators to follow: Shimano, for example, presented catastrophic figures, which clearly reflect the current situation. Another important player has followed suit: Bafang, a Chinese manufacturer known for its wide range of engines found particularly in Europe.
Net profit in free fall
The specialized media Bike EU thus relays its 2023 results. Unsurprisingly, they are precarious. Its turnover has in fact fallen from 360 to 206 million euros between 2022 and last year, a decline of 43%. Worse, net profit has contracted considerably: 66 million euros in 2022… compared to 16 million euros in 2023 (-75%).
In addition to the multiple factors mentioned in the first paragraph of this article, Bafang would have especially suffered from the VAE sales figures observed in Germany (-5%) and the Netherlands (-7%).
Drops, everywhere
Bike EU reveals very interesting details regarding the distribution of Bafang’s sales volumes. The latter is based on a catalog divided into three engine categories, all of which have experienced a decline:
- Mid-engine: 246,830 units in 2023, down 53.9%;
- Hub motor with integrated gears: 767,243 units in 2023, down 32.3%;
- Hub motor without integrated gears: 3.055 million units in 2023, down 28.8%;
Bafang tries to put things into perspective and even seeks reassurance. “The electric bike market still has a bright future. It will still take time to bring stocks back to a steady level, but in the long term, with the need for low or no carbon emissions, more countries will support the electrification of mobility by increasing subsidies and investments in infrastructure», Estimates the Chinese brand.
Carefully chosen investments
To continue its development, Bafang is investing intelligently. You should know that 66% of its 2023 turnover comes from China – these engines are mainly sold to local players who collaborate with foreign companies in order to export. Its investments are therefore concentrated where the group generates money, in China.
Bafang, for example, opened a brand new factory in Tianjin last year, but also moved to a new, more technologically advanced production site in Suzhou. The group also received new customs certification intended to facilitate and stimulate imports and exports. In short, Bafang is optimizing its processes, with a view to a brighter future.