600 million yuan spent! Zhejiang sells big bets on new growth pole

Under the continuous influence of environmental protection concepts, global consumers have an increasingly strong demand for green travel. With the advantages of zero emissions and low energy consumption, the use rate of electric vehicles has increased significantly around the world. Domestic companies have quickly started their overseas journey with a complete supply chain system.

In general, the E-bike market is very popular, with many companies competing here, including giants such as DJI and Xiaomi. Against this backdrop, some companies have begun to explore new paths and focus on emerging markets such as electric tricycles and electric golf carts, hoping to tap new growth opportunities in this new blue ocean.

600 million "bullets" loaded, big sales target electric vehicles as new "potential stocks"

On January 7, Taotao Vehicle Industry issued an announcement, agreeing that its wholly-owned subsidiary, Yongkang Taotao Technology Co., Ltd., would use no more than 600 million yuan of its own funds or self-raised funds to invest in the construction of an "annual production of 10,000 golf carts and key vehicle components industrialization project" in Yongkang, Zhejiang .

The total land area of ​​the project is about 80 mu, the planned total construction area is about 130,000 square meters, the construction period will not exceed 3 years and will be built in phases. After the project is completed, it will help Taotao Automobile's product competitiveness and market competitiveness and expand its market share.

Taotao Vehicle Industry is a national-level specialized small giant enterprise focusing on "new energy smart travel". In the cross-border circle, Taotao Vehicle Industry is famous for its "electric scooters". In 2023, the revenue of this business was 718 million yuan, accounting for 33.49% of the total revenue. In the field of smart electric low-speed vehicles, its product line has long covered electric scooters, electric balance bikes, electric bicycles and other categories. By 2022, the category will be expanded to electric golf carts.

Globally, golf, as an activity that combines both sports and leisure and entertainment attributes, is gaining more and more popularity among the public, especially in developed countries, which has become an important factor in promoting the development of the golf cart market. In addition, the application scenarios of golf carts have long gone beyond the scope of golf and have been widely infiltrated into residential areas, airports, hotels, resorts, industrial facilities, theme parks, farms and many other fields. This diversification of applications has greatly broadened the market potential.

The Global Market Index analysis report shows that the global golf cart market size will be US$2.6 billion in 2024, with an expected compound annual growth rate of 8% between 2025 and 2034.

In terms of fuel type, the golf cart market is mainly divided into gasoline, electric and solar . At present, environmental issues are becoming increasingly serious and emission regulations are becoming more stringent, and people are demanding environmentally friendly alternatives to traditional gasoline-driven models. Electric golf carts are gradually becoming a popular choice in various industries due to their low operating costs and low carbon emissions. The latest data from Global Market Index shows that in 2024, the electric segment accounted for more than 63% of the market share and is expected to exceed US$3.6 billion by 2034.

Taotao Automobile seized this market opportunity and quickly entered the U.S. market.

The United States is one of the largest markets for golf carts, with nearly 16,000 golf courses (accounting for about 43% of the world's total) spread across all states. According to the latest report from Persistence Market Research, the US golf cart market will account for 31.2% of the global market in 2024.

The strong golf culture and extensive related infrastructure have led to a strong demand for golf carts in the local area. According to the Global Market Index report, the US golf cart market accounted for 95% of the global revenue share in the same year, and the development trend is good. It is expected that by 2034, the revenue will exceed US$3.2 billion.

North America has long been the core target market for Taotao Automobile, especially the US market, which is the key growth pole for the company's development. In 2023, Taotao Automobile's sales revenue from the US market reached 1.529 billion yuan, accounting for 71.32% of the total revenue. By the first half of 2024, this proportion has climbed to 74.48%.

Thanks to years of intensive cultivation in the US market, Taotao Vehicles has accumulated a deep brand heritage and market foundation. For this reason, its electric golf cart brand DENGAO quickly opened up the market once it landed in the US, and its product sales have been rising all the way.

The financial report shows that in 2023, Taotao Vehicle Industry's electric golf carts achieved sales revenue of 78.5 million yuan, accounting for 3.66% of operating income. In the first half of 2024, the sales revenue of this business reached 371 million yuan, accounting for about 26.67% of operating income, an increase of 1200.82% year-on-year, becoming an important driving force for performance growth.

After the sales volume showed a rapid growth trend, Taotao Vehicle Industry responded positively in terms of capacity layout. At present, in addition to the Chinese factory, the company has accelerated the construction of overseas manufacturing bases in the United States, Vietnam and other countries. On October 5, 2024, Taotao Vehicle Industry's new electric golf cart production line in Texas, the United States, was officially put into production, and the first DENAGO electric golf cart manufactured in the United States was successfully rolled off the production line.

The environmental protection trend is sweeping the world, and Chinese electric vehicles of all categories are popular overseas

Under the severe situation of global warming, exploring the development of new energy has become an urgent matter. As an ideal choice for low-carbon travel, electric vehicles are integrating into people's lives at an astonishing speed.

From the golf carts that quietly shuttle around the golf course, to the electric bicycles ( E-bikes ) that can be seen everywhere in the streets and alleys, the electric motorcycles that speed at high speed, to the electric scooters and balance bikes that are popular among young people, and the electric tricycles (three-wheeled vehicles) that play an important role in urban and rural transportation, all kinds of electric vehicles have been selling well in the global market due to their advantages such as environmental protection, convenience, and economy, and have set off a craze for green travel.

China is undoubtedly a major producer and exporter of all kinds of electric vehicles. According to the National Bureau of Statistics, in 2023, there were 738 enterprises above designated size in the electric bicycle manufacturing industry, including electric bicycles, with an annual output of 42.28 million vehicles. According to the General Administration of Customs, in 2024, the total export value of electric motorcycles and bicycles alone exceeded 40 billion yuan.

At present, this kind of transportation that is common in China is being accepted and used by more and more foreign consumers. Take the electric tricycle as an example. In the past year, domestic electric tricycles have caused quite a stir in the United States.

On Christmas Day 2023, a Chinese short video blogger named "Bobo in the United States" spent $600 to buy a Guowei brand electric tricycle from China and shipped it to the United States as a gift for her father-in-law. As soon as the tricycle arrived in the United States, it quickly became popular in the blogger's town. The lightweight model and the ear-catching prompt sound attracted locals to take out their mobile phones to take pictures, and they kept asking how to buy it, saying that they also wanted to get one.

As the video went viral, the export volume of Guowei electric tricycles increased rapidly. According to relevant officials, in January 2024, the company's orders for exports to the United States increased by two times year-on-year.

Not only that, those who smelled the business opportunity and quickly made plans also sold out quickly. In early 2024, Luo Hao, a freshly graduated young man from Guizhou, saw the above video on a short video platform, and quickly found a cooperative electric tricycle manufacturer in Yancheng, Jiangsu, and rented an overseas warehouse in Los Angeles. After everything was ready, he officially started his entrepreneurial journey in the United States.

From the sale of the first "three-wheeled vehicle" in March 2024 to the end of 2024, Luo Hao sold hundreds of "three-wheeled vehicles" in total. His entrepreneurial experience quickly attracted public attention. At the end of 2024, the topic of " Chinese guy made 1 million by selling "three-wheeled vehicles" in the United States in 3 months" soared in popularity and became a hot search on Weibo.

Keen cross-border e-commerce sellers have also accurately captured this wave of market opportunities and have listed electric bicycle-related products on popular e-commerce platforms such as Amazon, Temu, and AliExpress to seize the market opportunity.

If you follow news from the United States, you will be surprised to find that the three-wheeled motorcycles that were originally used to carry goods and people in rural China are now freely shuttling around New York's Times Square.

In terms of price, electric tricycles are known for being cheap in China, but they are quite expensive overseas. Searching for "Electric tricycle" on Temu, it is found that its price range is between 2,300 and 5,700 US dollars. On the supply website 1688, the price of electric tricycles is between 1,300 and 5,800 yuan. After crossing the ocean, the price has increased several times. However, in the eyes of foreign consumers, the domestically produced electric tricycles, which are called "pickup truck substitutes", are still very cost-effective.

Nowadays, the sales of this affordable, durable and versatile domestically produced electric tricycle is expanding. It is not only popular in the United States, but also exported to Southeast Asia, Europe, Africa and other regions. At the Milan Motor Show held not long ago, the electric tricycle from China became a popular exhibit, attracting many foreigners to test drive it.

From a domestic perspective, electric tricycles have become a hot topic in the field of foreign trade. Even Chinese Ambassador to the United States Xie Feng and Foreign Ministry Spokesperson Hua Chunying have been vigorously promoting Chinese tricycles on social media.

However, from the current perspective, electric motorcycles and electric tricycles are still in the early stages of development in overseas markets, and the market maturity is far less than that of E-bikes.

Although electric bicycles are less well-known in China, they have been popular in the global market. According to data from Allied Market Research, a market research firm, the global electric bicycle market will be worth $48.7 billion in 2024 and is expected to reach $71.5 billion by 2030, with a compound annual growth rate of 6.6% from 2024 to 2030. According to Magic Mirror Insights, in 2023, sales of adult electric bicycles on the Amazon platform in the United States reached 2.8 billion yuan, a year-on-year growth rate of 57.3%.

With a complete bicycle industry chain, China has become the world's largest E-bike manufacturing base. In 2020, 7 million electric bicycles were consumed worldwide, of which nearly 30% were produced in China. (Data source: CONEBI) Statista predicts that by 2030, China's total production of electric bicycles will reach about 40.2 million.

The main export markets for Chinese E-bikes include Europe , North America , and Southeast Asia. Specifically, Chinese E-bikes have performed well in the United States , the Netherlands , Indonesia , Germany , and other markets. Data provided by overseas brand operator Sevens shows that at the beginning of 2024, most of the electric bicycle brands on the US market were Chinese manufacturers, and many of them were even produced by cross-border e-commerce practitioners in Bantian, Shenzhen.

The export market for electric bicycles is already booming, and many overseas brands have emerged, including Urtopia, SAMEBIKE, Engwe, Tenways, dyu, and Velotric. Moreover, now giants with strong technical strength , such as Xiaomi and DJI, are also rushing in.

Sellers who are interested in joining the market are faced with a choice: should they invest in the electric tricycle market, which is still in its pioneering stage, or join the E-bike field where competition is already fierce ?

With multiple industrial belts gathered, enterprises have the confidence to go overseas

Whether it is electric golf carts, E-bikes or electric tricycles, China has unparalleled supply chain advantages. The following is the distribution of industrial belts for these three types of products:

Electric bicycles have formed industrial clusters mainly in Wuxi, Jiangsu, Tianjin, Zhejiang, and Shenzhen, Guangdong.

Among them, Xishan District of Wuxi City, Jiangsu Province is known as the "Hometown of Electric Vehicles in China", with an industry scale accounting for 1/3 of the country. There is a saying that "one out of every three electric bicycles in the country is made in Xishan". The industry here is well-equipped, from motors, controllers, frames, batteries, to plastic parts, paints, molds and other parts production, which can provide all-round supporting support for the production of electric bicycles. Among the top 10 electric bicycle manufacturers in the country, 6 are in Xishan, including well-known brands such as Yadea, Aima, and Xinri.

Tianjin is an important electric bicycle production base in the northern region. Its products are known for their high cost-effectiveness and have a high market share in the northern domestic market and some overseas markets. It has two national characteristic industrial clusters, "China's Bicycle and Electric Bicycle Capital·Jinghai" and "China's Bicycle and Electric Bicycle Industrial Base·Wuqing". From the production of electric bicycle parts, such as motors, batteries, frames, brakes, etc., to the assembly of complete vehicles, a complete industrial chain has been formed here, and all links such as research and development, production, and assembly can be completed without leaving the city. According to Tianjin Customs data, from January to October this year, the city exported a total of 8.34 billion yuan worth of bicycles and electric bicycles, accounting for 16.3% of the country and ranking second in the country. Brand products such as Talang Technology and Urbanma are exported to many countries and regions in Southeast Asia, North America, and South America.

Zhejiang's electric bicycle industry developed early, with obvious industrial cluster effects, and is one of China's important production and export bases for electric bicycles. Taizhou City is China's first "electric bicycle and parts industry base", and ranks first in the country in "plastic cover production and sales, motor and electronic control production and sales, and vehicle parts manufacturing share", forming a complete industrial chain from parts production to vehicle assembly. It has well-known companies such as Lima Vehicle Group Co., Ltd. and Lujia Vehicle Technology Co., Ltd. It has a complete upstream and downstream industrial chain and has advantages in the production of key components such as batteries, motors, and controllers. For example, Zhejiang Changxing is an important domestic battery production base, providing high-quality battery products for the electric bicycle industry. At the same time, it is at the forefront of the industry in terms of lithium battery applications and intelligent control system research and development, and its products are highly competitive in domestic and foreign markets.

Although Shenzhen is not a traditional electric bicycle manufacturing center, it has unique advantages in cross-border e-commerce and brand operations, and is an important window for electric bicycle brands to go overseas. With many technology-based companies and innovative teams, it has advantages in the intelligent and lightweight design of electric bicycles and the application of electronic technology. Cross-border e-commerce is well developed, and logistics and distribution are convenient, which can quickly bring products to the international market. Driven by technological innovation, it continues to innovate in the fields of smart interconnection of electric bicycles, application of new materials, etc., and has launched a series of high-tech products to meet the demand for high-end electric bicycles in the overseas market.

Electric tricycles mainly form industrial clusters in Fengxian County, Jiangsu, Luoyang, Henan, Dezhou, Shandong and Wuxi, Jiangsu.

Fengxian is the largest electric tricycle industry base in China. There is a saying that "the world's three-wheelers look to China, and China's three-wheelers look to Fengxian". It occupies more than 60% of the domestic electric tricycle market share and more than 95% of the motor market share. In 2001, Xuzhou Baishili Company began to try to produce electric tricycles, setting a precedent for electric tricycle production. Under the promotion of the Fengxian government, the Fengxian Electric Tricycle Association and the Fengxian Branch of the Jiangsu Light Electric Vehicle Product Quality Supervision and Inspection Center have been established one after another, greatly promoting the development of the industry. Now, Fengxian has more than 1,000 electric tricycle complete vehicles and supporting enterprises. The core supporting links have gathered brand companies such as Jujie Electromechanical, Yitian Motor, Keya Controller, and Nanpu Electromechanical.

Luoyang, Henan Province has become one of the regions with the most complete industrial chain and supporting system for three-wheeled motorcycles in China. Yanshi District of Luoyang City is known as the "China Three-wheeled Vehicle Capital" by the industry. In Yanshi District, a "30-minute industrial circle" that is talked about by the industry has been formed. In addition to supplying local enterprises, parts are also supplied to Hebei, Shandong, Jiangsu, Chongqing, Guangdong and other places, realizing "one-place procurement, global supply". In 2023, the production of three-wheeled motorcycles in Yanshi District has reached more than 500,000 units, with an output value of more than 4 billion yuan and an annual export volume of 280 million yuan. The electric tricycles produced cover nine series and more than 100 varieties, including three-wheeled trucks, elderly scooters, disabled vehicles, and three-wheeled buses.

The electric tricycle industry in Dezhou, Shandong has developed to a certain extent, but has not yet formed a large scale like Fengxian County, Jiangsu Province and Yanshi, Luoyang, Henan Province. Dezhou has many electric tricycle manufacturers. As early as 2014, the number of low-speed electric vehicle companies in Dezhou had reached 109, with an annual output of 187,000 vehicles. In recent years, with the continuous development of the industry, the scale of electric tricycle companies in Dezhou has further expanded, forming a brand cluster represented by Li Chi, Fulu, Suzhou, Xinluwei, etc.

China's electric golf cart industry has not formed a very clear and single industrial belt in the traditional sense, but enterprises are relatively concentrated in some regions, forming a certain industrial agglomeration trend , as follows:

In the Yangtze River Delta region, there are companies such as Taotao Vehicle Industry in Lishui, Zhejiang. As a leading leisure vehicle company, Taotao Vehicle Industry produces electric golf carts that have a certain market share. In Changfeng (Shuangfeng) Economic Development Zone, Hefei, Anhui, there is Anhui Huaxin Electric Technology Co., Ltd., a national-level specialized and innovative "little giant" enterprise. The electric golf carts it develops and produces are equipped with personalized customization functions such as audio and light strips, and are sold well in the United States, Italy and other countries.

The Pearl River Delta region is home to many companies such as Langqing Electric Vehicle and Lvtong New Energy Electric Vehicle. These companies, with their advantages such as the local complete manufacturing supporting system, convenient transportation and logistics, and abundant industrial talent resources, have strong competitiveness in the production and manufacturing of electric golf carts. Their products not only supply the domestic market, but also occupy a certain share in the overseas market.

There are also some electric golf cart manufacturers around Beijing, Tianjin and other cities in the Bohai Bay Rim. The region has a vast consumer market and a relatively stable demand for electric golf carts. The proximity to raw material supply areas and ports helps reduce procurement and transportation costs. Some companies can also leverage the research and development capabilities of local universities and research institutions to improve the technical content of their products.                                    

Electric tricycle

E-bike

Electric Golf Cart