Thinking of getting an Electric Bike but surprised by the price? Right now is both a good and bad time to buy. Today we’ll take a look at why Electric Bikes will get cheaper, when, and why prices are in a weird spot.
Will Electric Bikes Get Cheaper?
Right now E-Bikes are at the near-perfect price point where they pose a great value for money. However, we do expect Electric Bikes to get cheaper and better over the next few years. The key things are battery tech, popularity, and political support.
Electric Bikes will definitely get cheaper in the next 5 to 10 years. However, we are past the point of massive price drops as most of the technology is settled. Right now is the small incremental improvement stage.
At the same time, the E-Bike industry is facing some unexpected but not unwelcome changes. The worldwide lockdown has had the effect of increasing the demand for E-Bikes while also decreasing their production and delivery.
The Lockdown Effect
Because of local lockdowns, many had turned to bikes as their way of getting out and about. Even people who have never really ridden before are seeing the benefits for mental and physical health that a ride can bring.
With the decrease in road traffic, there were also a lot of commuters still going into the office who are less scared of traffic. A big problem with bike commuting is the perceived and real danger of cars and other road users – which was lessened to a degree.
Electric Bikes posed a perfect way for people new to biking to enjoy the benefits without some of the harder work. As a result bike sales were up and E-Bike sales shot up massively during the past couple of years. This led to waiting lists, with fewer promotional offers and sale prices.
This also led to a price increase for buyers because the price is always relative to demand. We saw prices going up from 5-20% in part because of this demand as well as other trade issues.
E-Bike Tariff & Import Problems
In the past few years, steel tariffs, chip shortages, fuel prices, and manufacturing bottlenecks have all had a big impact on E-Bike prices. As a result, E-Bikes in general are 10-20% more expensive than they were a few years ago.
However, that’s not likely to drop back down. Various economic problems and general supply issues are key for E-Bikes. Steel prices are up, and the majority of the steel, raw materials, parts, batteries, and fully assembled E-Bikes come from China.
The simple fact is that fuel prices have caused every import to cost a lot more. The type of batteries used in E-Bikes are also used in basically every consumer electronic product. So basically prices are not going to go down in the next few years.
Add to that the UK leaving the EU and a chip shortage means there are a lot of factors at play. None of those are likely to go away any time soon. However…
Is Now The Best Time to Buy An Electric Bike?
We think that on balance – now is still a very good time to buy an E-Bike. If you are sold on the many benefits that Electric Bikes can bring then why wait. Electric Bike prices are not likely to go down for at least the next year or two and are more likely to continually rise instead.
Right now though we are seeing a lot of competition on features, weight, and battery size. That means while competition is high you are still likely to get a good deal.
Find out more – How Much Is An Electric Bike?
When Will Electric Bikes Get Cheaper?
In essence, once prices start to go down and quality improves it is very likely to continue to get better year on year. That’s probably around a full year or two off.
Even then prices will likely only drop a few percent each year. The key things that affect E-Bike price are all steadily getting better but major improvements are still a few years off.
There are always surprises that could shake things up. If politicians in many places make positive changes to E-Bike laws and access that’s a big plus. Incentives for buying E-Bikes and moving away from cars for everything can also really help shift units.
Why Are Electric Bikes So Expensive?
The biggest costs of an Electric bike are the motor and the battery. From there the quality of the normal bike components still matters. Other small extra costs include a battery charger, and a “brain” or controller as well as an app or display.
So, how will Electric Bike prices get cheaper? The major factors affecting prices dropping in the future are: –
Battery Tech
In the last 5-10 years battery technology (specifically Lithium Ion) has been steadily getting better and more widely adopted. Li-ion batteries have been adapted and used in everything from cars to watches.
As the format gets standardized the manufacturing gets better and capacity goes up for the same size. As more people go for E-Bike-sized batteries, mass production becomes cheaper. Newer formats will eventually change the game entirely.
We could see a surprise new battery tech jump up and take over the market. A wide range of research into possible tech and applications is underway as the next big thing will generate billions for the first to market.
Popularity + Uptake
E-Bikes used to be a very niche market and most models were hand-built to order. Then came the disruptive E-Bike companies that popped up and offered two or three models at decent prices.
Now, we see nearly every bike brand offering a range of Electric models. Even big car and motorbike brands like Jeep, Porsche, and Jeep are getting in on the action. Uptake and decreased costs also apply to the costs of new NTA 8776 E-Bike Helmets.
At this point, the manufacturing costs are going down massively. It also means that support and local bike technicians are getting better, as well as options for custom or upgraded parts. More uptake = lower prices for consumers.
Political Support + Subsidies
Across the world, we are seeing E-Bike Laws updated and modernized constantly. In places like China, the E-Bike industry is valued at over $30 billion and you’ll see them everywhere. In other areas, E-Bike scare stories make very clickable headlines.
The potential benefits of E-Bikes include reducing cars on the road, reduced noise pollution, fewer road deaths, less space needed for parking, cleaner air, healthier citizens…. we could go on.
Local political support helps people learn about the benefits and get the chance to make up their own minds by having a go themselves. Tax benefits, loans, grants, and incentives can actually save both consumers and local governments money if car use goes down.
Read about E-Bike Laws where you live and reach out to your local representative if you want to see a change.
Will E-Bike Running Costs Get Cheaper?
Electricity costs are actually only a very small factor in the price of running an Electric Bike. It only costs around 8 to 12 cents to charge an E-Bike battery from empty to full. Will daily use you might do that once or twice a week.
Over a year that might cost you from $29 to $88. If you have access to cheaper electricity, obviously this will go down. In the longer-term electricity prices should go down if countries adopt newer green technology as well as improve their power grids.
It’s also worth thinking about investing in solar energy and generating your own electricity instead of depending on a local provider.