Shimano keeps the e-bike market in check

Industries closed for months during the pandemic, transportation issues, and ever-increasing demand are factors that are certainly putting several sectors in difficulty.

Even for the bicycle sector, the problem is linked to raw materials.

According to the Financial Times the real weak point of two-wheelers, which has put producers and retailers in great difficulty, is Shimano, a very well-known manufacturer in the world of gears and brakes and which has the 65% of the quality cycle market in its hands.

During the first quarter, gears and brakes sold out like hot cakes and revenue from the bicycle parts division jumped 76% to 103.8 billion yen with operating profit jumping to nearly 70% to 27.7 million yen.

«In international markets, including Europe and North America, retail sales of bicycles remained robust and the inability of supply to keep pace with demand continues. – Shimano had to admit in its quarterly financial report – As a result, warehouse shortages continue in all countries».

The most obvious result is certainly the delay in deliveries: those who bought a bike in the past months are still waiting for delivery.

Another problem is the increase in prices.

In fact, raw material prices have increased incredibly (just think that aluminum prices per ton have increased by 27%), as have transportation costs and the implementation of anti-covid protocols in the factories has further increased company costs.

This results in an increase in prices throughout the supply chain, up to the final customer.

Unfortunately, this situation will be present throughout 2021 but also next year.

As we have said and reiterated in a previous post of ours item , the advice we feel like giving to anyone interested in purchasing an e-bike is not to be intimidated by long delivery times but, on the contrary, to order your bike as soon as possible.

Source: Il Sole 24 Ore