On the Streets of China, Electric Bikes Are Swarming

Of all the things that have changed in China over the past 30 years, transportation has undergone one of the most obvious of transformations. Where city streets once swarmed with bicycles, they are now full of automobiles. Cars clog intersection and expressways. Their exhaust clouds the sky and the air is full of the sound of horns. But zipping through the congestion is the vanguard of another transportation revolution: vehicles that use no gas, emit no exhaust and are so quiet they can surprise the unwary pedestrian.



In China, electric bicycles are leaving cars in the dust. Last year, Chinese bought 21 million e-bikes, compared with 9.4 million autos. While China now has about 25 million cars on the road, it has four times as many e-bikes. Thanks to government encouragement and a population well versed in riding two wheels to work, the country has become the world's leading market for the cheap, green vehicles, helping to offset some of the harmful effects of the country's automobile boom. Indeed, as engineers around the world scramble to create eco-friendly, plug-in electric cars, China is already ahead of the game. Says Frank Jamerson, a former GM engineer turned electric-vehicle analyst: "What's happening in China is sort of a clue to what the future will be."



Right now the future buzzes along at a sedate pace. Government regulations limit the top speed of e-bikes to about 12 mph. But manufacturers are building bigger and bigger machines with speed regulators that are easily removed. E-bikes that are basically pedal-powered machines with an electric boost are common in cities like Beijing and Shanghai, but e-scooters with heavier motors and top speeds of around 30 mph, fast enough to rival mopeds, are growing in popularity.



The e-bike boom owes much to Chinese policy. The government made developing e-bikes an official technology goal in 1991. Major Chinese cities have extensive bicycle lanes, which means riders can avoid the worst of rush-hour congestion. In cities such as Shanghai, local governments have drastically raised licensing fees on gas-powered scooters in recent years, effectively driving hoards of consumers to e-bike manufacturers.



The relative simplicity of the machines and their components has encouraged a huge number of e-bike companies to open in China. In 2006 there were 2,700 licensed manufacturers, and countless additional smaller shops. Rising to the top of the heap is not easy. Leading manufacturer Xinri the name means "new day" was founded in 1999 by Zhang Chongshun, an auto parts factory executive who recognized the potential of the field. In its first year Xinri built less than 1,000 bikes; last year it churned out 1.6 million.



Xinri's Zhang puts in thousands of miles on the road a year, visiting as many as six cities a day to investigate local market conditions. But ultimately what makes Xinri successful is that electric bikes have hit a sweet spot in the Chinese economy. As Chinese grow richer, they want more convenient means of transportation. But not everyone can afford a car. "Motorcycles are too dangerous, cars are too expensive, public transportation is too crowded and pedal bikes leave you too tired," says Hu Guang, Xinri's deputy general manager. "So people buy e-bikes."