(Yicai) March 6 -- Chinese e-scooter maker Niu Technologies is shifting toward premium products to cope with slowing growth in the country’s electric bike market.

Niu debuted three products at its 2024 product launch event at the end of last month -- the NX electric scooter, the NXT e-bike, and X3 smart off-road electric motorcycle -- each of which is aimed at the high-end market.

The NX costs up to CNY30,000 (USD4,170), while the NXT, which is mainly intended for China’s home market, costs about CNY10,000 (USD1,390). 

According to a report by iResearch, about 50.1 million two-wheeled e-bikes were sold in China in 2022, a 15 percent increase on the previous year. But the market’s growth last year is expected to have halved to 7 percent, indicating the end of the fast-growth period.

Focusing on the high-end market will not impact Niu’s sales volume that much, Chief Executive Li Yan told Yicai recently. Although the premium market’s size will probably shrink in the short run, the trend of upgraded consumption is likely to continue, with growing interest in technology and innovation, Li noted.

Rivals of the Beijing-based firm are expected to focus more on cutting prices, he said.

Niu plans to further integrate online and offline channels to boost sales volume at its existing outlets, and it will continue to expand, with 1,000 to 2,000 shops set to open this year. The firm will also increase its presence in overseas markets to tap demand, Li said. 

During the first three quarters of last year, Niu sold 570,000 scooters, down 17.5 percent from the same period of 2022. The figure was also off  2023’s sales target of 1 million. Li said that in the last two years, Niu has had to contend with rising lithium battery prices and various other negative factors. 

But battery prices have been falling, and many of the firm’s products are priced the same as they were in 2021. Prices will not fall in general, Li said, but this is because the company is offering models with higher hardware configurations.

Editor: Tom Litting