GLOBAL MOTORCYCLE BATTERY MARKET
- The rise and rise of low- speed electric two wheelers in Asia excluding China presents a strong export opportunity for suppliers
- India, China and Europe countries will have highest growth in 11-15Ah battery sizes.Vietnam and Indonesia will have highest growth in <5Ah battery sizes
- In 2019, the global two-wheeler sales were 62M units and about 12% sales was down in 2020 directly affecting the battery market resulting total loss of ~$70M
- In India(world`s biggest two wheeler market), Honda has highest volume sales ~2.5M units (Honda Activa 6G ~1.8M units) which have battery size of <5Ah.Hero Motocorp is the market leader which has ~3.5M units of OE market and 1M units Replacement market under <5Ah battery size.
- China is the biggest market for <5Ah ( <110cc) two wheelers and largest producer of Lead-acid Battery as well as Lithium-ion batteries.
- In Pakistan(world`s 5th biggest two wheeler market), top selling 2W are 70cc vehicles which has 2.5Ah batteries which comes under <5Ah segment have sales of ~0.7M units.5-10Ah battery vehicles sales value are very low.
Batteries are a critical component of every vehicle and motorcycles are no exception to that. Their prime purpose was and still is to empower SLI(starting, lighting and ignition), but now batteries also have to be strong enough to power on-board electronics and complete propulsion unit in case of electric motorcycle.
Motorcyles are largely used as an affordable means of commuting in Asia, unlike Europe and US where they are predominantly used for touring and adventure purpose.
The global electric motorcycle market is still in infancy stage and will only get to reasonable size in medium term. There are multiple startups in many countries working on electric motorcycles but very few products can be called practical at this point of time.
In April `19 , the four biggest Japanese manufacturers Honda, Kawasaki, Suzuki and Yamaha announced to work together towards standardizing battery swapping technology for electric motorcycles. This is a significant step taken by the leading manufacturers and will be pivotal in establishing consumer confidence in electric motorcycles, especially because Honda is a part of this consortium.
In terms of motorcycle lead-acid battery market, the arrival of BS VI emission norms in India(world`s biggest motorcycle market) has necessitated light-weighting,improved power density and higher voltage handling capacity.
HONDA`S DOMINANCE IN ASIA EX CHINA
Honda is the global market leader of motorcycle market. It had 27% share of global and 31% share of Asian motorcycle market. It`s 100-125cc motorbikes serve as reliable daily commuters for millions of Asian consumers.
Any changes in Honda`s two-wheeler battery spec and technology will have direct impact on OE as well has replacement demand.
Yamaha is the second biggest global motorcycle manufacturer with 9% global share and 11% share in the Asian market.
MOTORCYCLE BATTERY MARKET TRENDS
- Amara raja batteries and Johnson Controls have signed collaboration agreement to bring new wave of battery technologies to India, the two companies are tend to improve Enhanced flooded batteries (EFB) and absorbent glass mat(AGM) batteries enabling sophisticated consumer features and stricter emission standards in Automobiles. -2018
- Exide Industries Ltd, India’s largest manufacturer of lead acid storage batteries and Leclanché , one of the world’s leading energy storage solution companies will have a joint venture to build lithium-ion batteries and provide energy storage systems for India’s electric vehicle market and grid-based applications. – 2018.
- GS Yuasa and NTT Com Successfully Develop AI Technology to Detect Early Signs of Failure in Storage Battery Systems -Contributing to the Creation of Safe, Secure, and Stable Infrastructure for a Carbon-Neutral Society.
- GS Yuasa Corporation announced that it has both developed high energy density technology as well as longer lifecycles for silicon metal-based negative electrodes. Both of these properties have posed many challenges with respect to the commercialization of large batteries. As a result, the energy density of batteries, the size of which are used in actual electric vehicles, has been successfully increased by about three times compared to that of traditional lithium-ion batteries. – 2018
MOTORCYCLE BATTERY MARKET SEGMENTATION
TOP 10 BEST-SELLING MOTORCYCLES GLOBALLY, EXCLUDING CHINA AND THEIR BATTERY CAPACITY
|Sl no||Country||Brand||Model||Estimated annual sales-FY 2019 |
|Engine capacity(CC)||Battery size(Ah)|
|4||Indonesia||Honda||Vario 125 & 150||2,400||125-150||5-7|
|6||Multiple ASEAN countries||Honda||Scoopy||1,840||110||5|
|7||Multiple ASEAN countries||Yamaha||N Max||1,200||125-155||7|
COVID IMPACT ON MOTORCYCLE BATTERY MARKET
- The automotive industry took the biggest hit as the global supply chain had to come to a halt. With customers not purchasing new vehicles, the two-wheeler (2W) battery industry suffered the biggest blow to business.
- Asian countries constitute the largest markets for 2W batteries, especially India, China, Vietnam, Indonesia, and Thailand. Before the COVID-19 crisis, Aftermarket 2W batteries were being sold at the rate of nearly 95 million a year.
- European and North American markets did not suffer much, as not all retailers had closed, and traditional sales volume had never been as large as that of Asia. However, with global economies beginning to open up, the 2W battery industry is set to see the release of pent-up demand and a surge in sales.
- Sales have rebounded by more than 50% in some markets because of the pent-up demand and personal mobility becoming a necessity in the time of the pandemic. This is expected to continue in the short-to-medium term, even after global vaccine is made available, as two-wheelers offer a more affordable, convenient, and rapid transportation means than passenger cars.
- After global 2W battery giants companies survive the outbreak and rebuild their companies financially, the next step would be to train their focus on future growth strategies, such as developing more premium 2W batteries, innovative and waste management solutions, Eco-friendly batteries for Hazardous environments , and low recycle cost. These avenues will be critical to penetrating new markets.
- Indian lead-acid battery Industries are focusing on ‘cost control’ and ‘technology upgradation’ to improve the bottom-line after COVID-19 caused a distribution in the supply chain.
- Global lead production is expected to decline by 5.2% to 4.5 million tones (Mt) in 2020. The outbreak of the COVID-19 pandemic in late December 2019 significantly impacted the Battery industry in the first half of 2020 and partially regaining in further months.
MARKET SIZE AND FORECAST
The global motorcycle battery market is largely concentrated in Asia(>90% share), with Europe and American continent accounting for <8% share cumulatively.
India and China alone account for ~60% of global new motorcycle battery sales i.e., ~37-40 M units. ASEAN countries account for 22-25% and several other countries account for remaining 18-20%.
In India, there is a growing demand for >200cc motorcycles in urban markets (top 8, tier-1 cities) of India. The OEMs see higher margin in this segment and now that fuel injection fitment will grow, we can expect 20+ all new >200cc motorcycles in the market between 2019-2025.The batteries of these bikes are ~30-40% more expensive than 110-125cc.
It must be noted that the best-selling motorcycles in India are priced at $600-$900 per unit which is 25-35% less than ASEAN Countries and 60-75% less than in Europe and US.
The superbike(>650 cc and >$7,000 ) market in India, although estimated at ~$80 Million in 2019 has now started declining. The batteries used in these motorcycles are typically of 12Ah and above with avg B-2-B price of $12-$15 per unit.
The 100-110CC scooters/motorcycles have 3-4Ah battery whereas the 200-500CC motorcycles are equipped with 8-14Ah battery.
The global motorcycle battery market is estimated at $XX Million in 2019 and $YY Million by 2025.
The global motorcycle battery market is fragmented with numerous players occupying very little market share. However, companies like Exide and GS Yuasa have significant market share due to wide global presence,strong distributor network and diverse product portfolio.
GS Yuasa is world’s top 1st motorcycle battery seller which, generated revenue of $850M in Japan and $1.5B from exports of lead acid batteries.
Tianneng battery group has highest gross margin profit of $314M followed by GS Yuasa of $233M.
Amara Raja has 16.4% of gross margin profit and high average profit comparatively.
In 2022, GS Yuasa will reach $4.45B of net sales and EBIDTA will be 6% at ROE of 8% as company’s prediction
Tianneng group gross profit increased approximately 15.9% about $725M in 2019 from $625M in 2018.
In India, the share of unorganized battery manufacturers is ~20-25% of total automotive battery market. To counter unorganized battery manufacturers, the organised players are promoting budget brands at competitive pricing and shorter warranty period. They are also expanding distribution network in the semi-urban and rural markets- the biggest market for unorganized players, where consumer awareness and purchasing power is among the lowest. Many OEMs are also looking to launch tubular batteries in the adjacent E-rickshaw/electric three wheeler market.
- Exide Industries Limited
- Amara Raja Batteries Limited
- Base Corporation Limited
- SF Sonic Batteries
- TATA Autocomp GY Batteries Private Limited
- Scorpion Battery, Inc
- EnerSys Energy Products Inc.
- GS Yuasa International Ltd
- MotoBatt Limited
- VARTA Automotive
- FIAMM Energy Technology S.p.A.
THIS REPORT WILL ANSWER THE FOLLOWING QUESTIONS
- How big is the motorcycle replacement battery market as compared to OE market?
- The growth in 200cc+ motorcycle segment in India and overall battery capacity post BS VI in 2020
- Which country and battery segment generates biggest motorcycle replacement battery demand per annum ?
- How is the aftermarket battery value chain different in India and China?
- A detailed assessment of Chinese motorcycle battery market and the impact of ban on ICE motorcycles in major cities ?
- What will be the impact of growth in electric motorcycle sales on battery market?
- Major issues faced by battery manufacturers and how they plan to overcome it?
- Competitive landscape in highly unorganized replacement battery market and organized OE market
- Which countries account for majority of motorcycle battery manufacturing?
- Opportunity in battery e-retailing in all major countries
- Global outlook on availability of raw materials like Lead and Lead alloy
- Developments in battery recycling and its impact on overall ecosystem
- The impact of Indian and Chinese economy slowdown and tariff war on motorcycle battery market
- How will on-demand micro-mobility,metro expansion and ride hailing impact motorcycle sales in Asia?
- The growth potential of battery swapping for electric two wheelers, will it generate additional demand?
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