As volatility in international oil prices increases due to instability in the Middle East, Yadea, the world's largest electric two-wheeler company, is enjoying an unexpected windfall. Orders are surging as demand for electric two-wheelers rises quickly, centered on Southeast Asia and South America. Yadea grew on the back of China's domestic market but, facing a slowdown at home, is using this momentum to speed up its push into overseas markets.
According to local media, Yadea is a specialist electric two-wheeler company headquartered in Wuxi, Jiangsu province. Chair Dong Jinggui, the founder, comes from a rural area of Anhui province and learned motorcycle maintenance skills during military service. Together with his spouse, Vice Chair and Chief Executive Officer (CEO) Qian Jinghong, he ran a restaurant before entering the motorcycle business in the late 1990s, then expanded by acquiring state-owned factories.
Yadea is regarded as the world's largest electric two-wheeler company, with cumulative sales surpassing 100 million for electric scooters, electric motorcycles, and electric bicycles. Vice Chair Qian has appeared multiple times on Forbes China's list of "Best CEOs."
◇ As oil prices swing, electrification demand rises… orders surge in Southeast Asia and South America
According to China Renaissance Securities, Yadea sold a total of 16.3 million units last year, generating 37 billion yuan (about 8.3098 trillion won) in revenue and 2.91 billion yuan (about 653.5 billion won) in net profit. These were record highs, up 31% and 129% from the previous year, respectively. The market expects this year's revenue to reach 40.9 billion yuan (about 9 trillion won) and net profit to reach 3.27 billion yuan (about 734.6 billion won), growing more than 10% from a year earlier.
The recent spotlight on Yadea is due to the growth of its overseas business. According to China Renaissance Securities, Yadea is estimated to have sold 210,000 units overseas in 2024 and 310,000 in 2025, and this year's overseas sales are expected to increase by a much larger margin. Yadea told the FT, "This year's overseas demand is about 70% higher than last year," adding, "We need to speed up shipments as customers keep asking if they can move up delivery times." Orders are said to have jumped particularly in Southeast Asia and South America.
Rising international oil prices have been a key backdrop for Yadea's overseas expansion. Consumers burdened by higher gasoline prices stemming from the Iran war are turning to electric two-wheelers. In Southeast Asian countries where motorcycles are a primary means of transportation, fuel costs are reported to be directly influencing purchase decisions. Yadea is seizing the opportunity to accelerate its entry into Europe as well. The company is watching the potential to expand electric scooter adoption in major cities such as London in the United Kingdom and Paris in France.
The FT said, "Volatile oil prices have triggered a surge in demand for eco-friendly industrial products such as Chinese electric cars and electric scooters," adding, "Experts analyzed that a sharp rise in oil prices from the Middle East will accelerate electrification over the long term."
◇ Beyond a saturated China domestic market, a full-on global push
Yadea's growth path resembles that of Chinese electric car company BYD. Benefiting from the Chinese government's transportation electrification policies, Yadea built economies of scale by taking the lead in China's domestic market, the world's largest electric two-wheeler market. It currently operates six factories in China. Recently, it has been improving profitability by increasing the share of premium products and boosting in-house sourcing of key components such as batteries. China Renaissance Securities cited product premiumization and supply chain efficiency as reasons for last year's surge in Yadea's net profit.
Yadea's push to expand overseas is also tied to the limits of growth in the Chinese market. According to Yadea, about 300 million electric scooters are currently in use in China. Yadea said, "The average is 1.5 to 2 units per household," adding, "With the population declining, there will be limits to further growth in the domestic market."
Still, Yadea's overseas business is at an early stage. Citibank's analysis shows last year's overseas business accounted for only about 2% of total revenue. The growth potential, however, is large. Yadea set this year's overseas sales target at 450,000 units, a big increase from 310,000 last year. To that end, it plans to expand its sales network from 3,700 to as many as 10,000 outlets. Yadea currently operates production bases in Vietnam, Indonesia, Thailand, Türkiye, Brazil, and Mexico. It also plans to build a factory in Hungary to meet rising European demand.
The market outlook is bright. According to the International Council on Clean Transportation (ICCT), as of last year, electric two-wheelers accounted for only about 15% of the global two-wheeler market. Because electrification is still in its early stages compared with the automobile market, there is significant room for growth ahead.
On top of that, leading companies are accelerating feature upgrades, which is expected to spur market growth. According to Chinese business outlet Caixin, recent electric two-wheelers have made features such as remote control, smart keys, and real-time vehicle status checks standard, and some corporations are even developing their own vehicle operating systems (OS). In its late-March earnings release, Yadea said, "Electric two-wheelers are evolving from simple means of transportation into products with smart features, design, and lifestyle elements."