China's electric two-wheeler market, with an ownership volume of 400 million units, is entering a new phase where premiumization, smart technology, and overseas expansion will define competitive dynamics. This transition tests both corporate endurance and capital strength.
Recent reports indicate that TailG, the industry's third-largest player, has officially begun IPO preparations targeting a 2026 Hong Kong listing. This would complete the capital market trifecta of China's e-bike leaders alongside YADEA (01585.HK) and Aima Technology (603529).
The unassuming electric two-wheeler sector has already produced multiple listed companies including YADEA, Aima, and others. TailG's potential listing would create a "capital triumvirate" in China's e-bike arena. Market observers question whether TailG's access to financing could reshape the industry hierarchy.
Founded by three Chaozhou brothers with motorcycle repair experience, TailG emerged after Shenzhen's 2003 motorcycle ban created demand for alternatives. Over two decades, it has grown into a full-chain enterprise with eight global production bases and annual capacity exceeding 15 million units. Media reports estimate TailG's revenue at ¥12 billion with 14.7% market share, trailing only YADEA and Aima.
YADEA dominates with over ¥30 billion revenue and premium positioning, while Aima exceeds ¥20 billion with cost-effective, stylish products. TailG differentiates through technology, particularly extended-range systems that hold multiple Guinness records, earning strong appeal among delivery riders and lower-tier markets.
The industry's consolidation accelerated after 2019's national standards eliminated non-compliant manufacturers. From 2,000 chaotic competitors, the market has condensed to about 100 players, with the top five now controlling 75% share. Analysts expect further concentration, predicting top-five players may soon exceed 85% market share.
After peaking at 50 million annual sales during the standards transition, 2024 saw a 10.55% decline to 49.2 million units. However, 2025's upgraded standards and trade-in policies have reignited growth, with H1 sales up 29.5% to 32.3 million units. Market leaders YADEA and Aima grew approximately 40%, while newer entrants like Niu and Ninebot exceeded 50% growth.
With China's market nearing saturation at 400 million units, future growth will rely on replacement demand and value upgrades. The market is projected to reach ¥160 billion by 2027, shifting from volume-driven to premium-focused growth.
TailG's IPO push aims to fund smart technology transformation amid intensifying premium competition. While startups initially led premium segments, traditional players are responding - YADEA launched its ¥10,000+ VFLY series, followed by Aima's ¥4,999-9,999 "Xiao Pa" sub-brand.
Overseas expansion presents another challenge, with YADEA's 2024 international revenue below 10% and Aima's at just 1.09%. Regulatory hurdles and market differences make globalization a long-term project for Chinese e-bike manufacturers.
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