China’s electric scooter market is entering a new phase of transformation. With more than 425 million units already on the road and annual production exceeding 21 million vehicles, the industry is no longer defined by first-time adoption. Instead, it is shifting toward a large-scale replacement cycle driven by regulatory enforcement, lithium battery cost reductions, and rising demand from commercial delivery fleets. This structural reset represents an estimated $13 billion electrification opportunity as smarter, safer, and higher-performance models replace legacy lead-acid platforms.
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From Mass Adoption to Infrastructure Backbone
Electric scooters in China have evolved far beyond affordable commuter devices. They now function as critical infrastructure within the country’s logistics, food delivery, and e-commerce ecosystems. The market has bifurcated into two distinct segments: regulated commuter scooters capped at 25 km/h under GB 17761-2024 standards, and high-performance commercial units exceeding 7.2 kW used by courier networks and platform-based delivery operators.
This industrial upgrade has attracted participation from major battery manufacturers, including CATL, BYD Company Ltd., and Gotion High-tech Co., Ltd. These companies are adapting automotive-grade lithium cell technology to the two-wheeler segment, significantly raising standards for energy density, safety compliance, and battery lifespan.
Regulatory Mandates Trigger a Replacement Supercycle
The most significant catalyst reshaping the Chinese electric scooter market is the enforcement of GB 17761-2024, which takes effect in September 2025. The regulation introduces tamper-resistant controller requirements, mandatory BeiDou geolocation tracking for commercial fleets, and independent CCC certification for lithium-ion battery packs. As a result, approximately 70 percent of pre-2024 lead-acid inventory is non-compliant, accelerating a nationwide modernization cycle.
Manufacturers unable to meet upgraded electrical safety standards and battery traceability protocols face steep compliance costs. This dynamic is expected to accelerate consolidation in a historically fragmented industry.
Lithium Economics Shift the Competitive Balance
Parallel to regulatory tightening, lithium battery economics have reached an inflection point. Lithium-iron-phosphate (LFP) battery pack prices have fallen to approximately $94 per kilowatt-hour in 2024, representing a 52 percent decline since 2022. The retail cost gap between lead-acid and lithium scooters has narrowed to less than $80 in many markets.
This pricing convergence has fundamentally altered procurement behavior. Commercial fleet operators are increasingly standardizing swappable LFP configurations, reducing total cost of ownership by more than one-third over three-year duty cycles. Longer battery life, improved thermal stability, and lower maintenance requirements are reinforcing the economic case for lithium-based platforms.
Commercial Fleets Drive Premiumization
The commercial segment is emerging as the primary engine of value growth. Last-mile delivery fleets require high-durability scooters capable of operating up to 18 hours per day. Reinforced chassis systems, oil-cooled hub motors, and telematics-enabled fleet management platforms are becoming standard specifications.
Companies such as Cainiao Network are integrating electric scooters into broader smart logistics systems that include autonomous vehicles and centralized dispatch optimization. Lithium battery shipments for commercial applications recorded strong year-on-year growth in early 2025, underscoring sustained demand for fleet modernization.
This professionalization of fleet procurement is pushing average selling prices upward and reinforcing a shift from volume competition toward performance differentiation.
Battery Chemistry Transition: Lithium Ascends, Sodium Emerges
Battery chemistry segmentation highlights the market’s structural transition. Lead-acid batteries still account for slightly more than half of total revenue due to established recycling networks and lower upfront costs. However, lithium-ion batteries are rapidly gaining market share as their superior lifecycle economics outweigh initial price premiums.
An emerging strategic layer is the development of sodium-ion batteries. Investments by CATL and BYD Company Ltd. into sodium-ion production aim to diversify material sourcing and stabilize long-term input costs. Sodium-ion cells are particularly attractive for urban commuter segments where moderate range requirements intersect with cost sensitivity.
Regional Manufacturing Leadership: Guangdong at the Core
Guangdong Province has become the epicenter of advanced electric scooter production. The region combines dense lithium-ion battery fabrication capacity with precision engineering and digital integration capabilities. Leading brands such as Yadea Group Holdings Ltd. and Niu Technologies operate within this ecosystem, leveraging cross-sector collaboration between battery suppliers, software developers, and hardware assemblers.
This integrated manufacturing cluster strengthens supply chain resilience and accelerates technology transfer between automotive and two-wheeler platforms.
Competitive Landscape: Vertical Integration Reshapes the Market
The competitive landscape is increasingly defined by vertical integration. Battery manufacturers are pursuing forward integration, embedding proprietary cell technologies directly into two-wheeler platforms. This approach enhances cost control, performance optimization, and alignment with compliance requirements.
As regulatory complexity increases, smaller manufacturers with limited production scale face mounting financial pressure. Compliance upgrades, certification processes, and digital traceability systems require capital investments that may be unsustainable for sub-scale operators. Consolidation is therefore expected to intensify over the next several years.
Strategic Outlook: Value Growth Replaces Volume Growth
China’s electric scooter market is no longer a high-volume expansion story. Instead, it is transitioning into a technology-centered, compliance-driven ecosystem characterized by higher unit values and longer product lifecycles. Replacement units increasingly carry significantly higher average selling prices than first-generation purchases, reflecting consumer willingness to invest in lithium batteries, telematics integration, and enhanced safety systems.
With regulatory enforcement tightening and fleet electrification accelerating, the next phase of growth will be defined by battery innovation, supply chain integration, and premium platform differentiation. For stakeholders across the mobility, logistics, and energy storage sectors, China’s electric scooter market represents not just a mature industry but also a strategically repositioned electrification platform poised for sustained value creation.
