Bikes buck downturn for Germany while eBike sales outstrip bicycles

This week, Germany’s bicycle industry association ZIV (Zweirad-Industrie-Verband) revealed the good news that sales were relatively stable in the German cycling market in 2023, while production rose, with particularly interesting news for eBike sales.

In a year widely regarding as among the worst trading conditions the cycle industry has yet seen, bicycle sales in Germany were stable and considerably up on pre-Covid times. The value of bicycle and eBike sales in Germany in 2023 was €7.06 billion euros (2022: €7.36 billion, 2021: €6.56 billion , 2019: €4 billion). Bicycle production also hit high levels.

Overall, the number of bicycles and eBikes in Germany in 2023 grew, to 84 million (2022: 82.8 million), with a share of around 11 million eBikes. In addition to buying new ones, the trend is increasingly towards purchasing second or third bikes – for example for leisure, sports or transport. According to ZIV, market saturation is therefore still not foreseeable.

Burkhard Stork, Managing Director of ZIV, said: “Bicycles and e-bikes are very popular with consumers despite the economic situation.

“We are very pleased that bicycles and eBikes continue to be very popular with consumers for daily mobility and leisure time,” says Burkhard Stork, managing director of the ZIV – The Bicycle Industry Association, which publishes the figures annually. “With regard to the eBike as a market and innovation driver, companies from the German bicycle industry are now taking on a pioneering role worldwide. When it comes to eBikes, ‘Engineered in Germany’ and ‘Made in Europe’ are the guarantees for engineering, design, quality, sustainability and value retention.”

The e-Bike dominates

The long-predicted tipping point came about in 2023, where for the first time, more eBikes were sold in Germany than classic bicycles (47%), at 53% (2022: 48%). 1.9 million bicycles (47%) were sold compared to 2.1 million e-bikes in 2023. ZIV noted the high share enjoyed by specialist retailers, which rose by one percentage point to 77% in 2023, while self-service department stores, hardware stores and discounters “continued to lose importance with a market share of 1%”.

That’s a point that appears to be reflected in the UK. As noted in the most recent issue of CIN, independent bike retailers in the UK have been steadily and consistently dedicating more space to eBikes over the past five-plus years, indicating that the independent channel is hugely important to the electric assist sector, as it also appears to be in Germany.

Production

It wasn’t just eBike sales dominating the report, however. After the all-time high in bicycle and eBike production in Germany in 2022, which contributed to overflowing warehouses last year given the collapse in demand, production in 2023 reached the boom level of 2.3 million units. ZIV pointed out that the performance of the German bicycle industry is even greater, with a good part produced abroad on behalf of German companies (90% mainly in EU countries). Contract manufacturing by German companies abroad amounts to 710,000 units. In total, the companies in the German bicycle industry will be responsible for 3 million bicycles and eBikes produced at home and abroad in 2023.

The industry recorded a gross average price for bicycles of €470 in 2023 (2022: €500) and for e-bikes of €2,950 (2022: €2,800). The increasing proportion of naturally significantly higher-priced cargo bikes, which is increasing average prices, must be taken into account.

“Overall, the market data shows very clearly that people in Germany attach great importance to cycling in everyday life and in their leisure time and the associated high-quality products,” said Burkhard Stork, Managing Director of the ZIV. “The bicycle market is therefore stable at a high level and will have decoupled from the general negative consumer climate in 2023. Bicycles and especially eBikes of very good quality and with innovative technology are valued by consumers, as is the advice and service from qualified specialist dealers and their workshops. Bicycle leasing via employers has also developed into an important market driver. Experts estimate that today around one in four bikes comes to customers through leasing, which combines many advantages for employees. Stationary specialist retailers in particular benefit greatly from this development.”

The Service and Bicycle Association (VSF), which together with Bike & Co. represents an important part of the stationary bicycle retail trade in Germany, also drew positive conclusions from the data: “The stationary bicycle retail trade is remarkably stable in turbulent times,” said VSF managing director Uwe Wöll. “The situation in specialist bicycle retailers is clearly positive – in terms of total sales, average prices, business expectations and inventory levels. Specialist retailers remain the mainstay of the bicycle industry and the dominant sales channel for high-quality bicycles and eBikes.”

ZIV managing director Burkhard Stork added:  “The rising costs of mobility, energy, rents and living standards as well as increasing environmental and health awareness are conditions that are currently and will certainly increase the popularity of bicycles and eBikes in the future. Politicians must not forget the bicycle and must finally fully recognise the potential of the bicycle.”