Yamaha pulls out of U.S. e-bike market
In a recent letter to its dealers, Yamaha Bicycles announced it will pull out of the e-bike business in the U.S. by the end of the year, according to multiple reports.
“As you know, the combination of a post-Covid oversupply within the entire bicycle industry, coupled with a significant softening of the market, has resulted in a particularly challenging business environment where it is extremely difficult to achieve a sustainable business model,” Yamaha says in the letter, which has been deleted from some social media posts.
The company says it is pulling out of the U.S. e-bike segment due to market conditions and the leftover inventory glut caused by Covid. Yamaha will stop wholesaling units at the end of 2024.
Yamaha built the first electric power-assist bicycle motor in 1993. However, it didn’t enter the U.S. e-bike segment until 2018 with a range of mountain and fitness/lifestyle e-bikes.
Yamaha told its dealers that it will continue its “fan promotion” program that offers customers up to 60% off a new Yamaha e-bike. The program will be extended until June 30, 2025, according to reports, and Yamaha will also continue parts, service, and customer support throughout its five-year warranty period in the U.S.
Yamaha’s e-bikes were considered a premium model range that featured high-end components and motors built by the Japanese company in-house. There is speculation that Yamaha could continue to supply motors for other brands that supply the U.S. e-bike segment, but that is unconfirmed.
During the pandemic, the e-bike industry saw a huge spike in demand, and Yamaha and others raced to fix supply chains and build the models ordered through dealers. But, as with many other brands, the supply was too much once the world started returning to normal and demand softened. Since then, many brands have filed for bankruptcy protection, including Fuell, Sondors, Juiced Bikes, and others.
Here is a copy of the letter sent to Yamaha e-bike dealers:
“Dear Yamaha eBike Dealer,
We want to thank you for your partnership and for your business in purchasing and retailing Yamaha eBikes, and for proudly representing the Yamaha brand. However, as you know, the combination of a post-COVID oversupply within the entire bicycle industry, coupled with a significant softening of the market, has resulted in a particularly challenging business environment where it is extremely difficult to achieve a sustainable business model. Given these market conditions, we regret to inform you that Yamaha has made the difficult decision to withdraw from the U.S. eBike business and cease wholesaling units effective the end of this year.
Yamaha Motor Corporation, U.S.A. (YMUS) entered the U.S. eBike market in 2018, and we have enjoyed the opportunity to partner with you these past six years to sell exciting, high-quality, all-road, mountain, and fitness/lifestyle eBikes.
We will continue to support your dealership in the sell down of your inventory by extending the current “Fan Promotion” program where customers may receive up to 60% off their purchase of a new Yamaha eBike. This “Fan Promotion” program will be offered on all units retailed and warranty registered through June 30, 2025. YMUS will continue to provide parts, service, and customer support in the United States both now and in support of our limited 5-year warranty.
Finally, we wish to express our sincere appreciation and gratitude to you and your staff for your dedication and support of the Yamaha eBike business.
Thank you for your understanding and support.”
Sources: Electrek, Digital Trends
