What can the two-wheeler "new forces" cooperate with the auto giants? On November 20, Nine Company (689009. SH, share price 45.78 yuan, market value 32.816 billion) and BMW Group signed a cooperation agreement in Changzhou, Jiangsu.

The reporter of "Daily Economic News" learned from the Nine Company that after the cooperation is reached, the Nine Company will develop and produce a series of electric two-wheeled vehicle products with independent property rights and safety and innovation based on the two-wheeled vehicle safety technology patent developed by the BMW Group, combined with the company's own advanced technology.

As a world-renowned luxury car brand, BMW tried to lay out the electric motorcycle market in 2011. In 2012, the launch of the BMW C evolution made BMW the first "electrocution" player among high-end motorcycle brands.

In addition, the BMW Group continues to invest in the category of electric motorcycles. At the 2022 BMW Group Annual Financial Meeting, BMW Group Chairman Philip Zipzer said: "From 2030 onwards, all BMW motorrad urban mobility series will be electrified. In the future, every 18~24 months, BMW Motorrad will launch an electric motorcycle to the world."

Coincidentally, electric two-wheelers are a strong business for Nine.

According to the third quarter report of 2024, in the third quarter of this year, the company's electric two-wheelers achieved sales of 937,600 units (936,300 units in China) and revenue of 2.592 billion yuan. In the first three quarters, the domestic sales of electric two-wheeled vehicles reached 2.1347 million units, a year-on-year increase of 86.08%, and the sales revenue reached 5.908 billion yuan, a year-on-year increase of 87.45%.

Regarding the profitability of the electric two-wheeler business, Nine revealed at an investor relations event on October 28 that in the third quarter of this year, the operating profit margin showed a slight increase compared with the second quarter.

Focusing on the electric bicycle industry, the current "new national standard" replacement demand has been basically met, the industry's replacement bonus period is nearing the end, and the implementation of the "new strong standard" has brought new challenges to enterprises in the industry. With this backdrop, how will Nine meet the market demand for new electric two-wheelers?

At the results briefing on November 19, the executives of Nine Company mainly mentioned two points when answering this question: one is to meet market demand through new model development and product exploration, "such as the development of Xyber and K series models"; Second, it will consider targeting users through product positioning and price system to increase market share, and will also meet the needs of different users through product mix.

At the same time, the executives of No. 9 Company revealed at the performance briefing that in terms of sales, the proportion of No. 9 electric bicycles and electric motorcycles is relatively close. In terms of market share goals, in the medium to long term, the company hopes to gain a higher share in the mid-to-high-end market.

According to the "2023 China Two-Wheeled Electric Vehicle Industry White Paper" released by iResearch, in the two-wheeled electric vehicle market of more than 7,000 yuan, the market share of Nine and Maverick is 51.7% and 43.8% respectively, and the competition is fierce. The cooperation with BMW will also be an attack launched by Nine Company to maintain its position in the mid-to-high-end market.

Cover image source: National Business Daily (data map).