Supply shortage slows e-bike uptake

Thursday, 14 October 2021

Habitat for Humanity Invercargill general manager Paul Searancke says more awareness of carbon emissions and the cost of fuel has pushed consistent e-bike sales, but getting supply in has been troubling due to supply chain congestion.

Demand for e-bikes in Southland is increasing, but Covid-19 induced global supply chain issues has meant local stores are struggling to get in stock.

Habitat for Humanity Invercargill general manager Paul Searancke said about 90 per cent of e-bikes were made in China, with the current supply chain being fraught due to worldwide shipping congestion caused by Covid-19.

It sells and hires e-bikes at its ReUsery shop in Invercargill with proceeds going towards lifting people out of housing poverty.

As a result of shipping congestion and factory delays in China, it was now ordering bikes from its importer about four months in advance.

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Although sales had remained consistent, increased awareness of carbon emissions coupled with the rising price of petrol and ease of access meant demand for e-bikes for commuting was growing, he said.

“We’ve always had fairly consistent demand recreationally, that’s [commuters] where the increase really has been,” he said.

“Once fuel goes up again I think people will start looking at alternatives. You can ride an e-bike across town in roughly the same time as a car, it’s just more cost-efficient.”

H & J Smith Outdoor World manager Michael Matheson said it used to be able to order e-bikes “day to day” before the Covid-19 pandemic, but was now placing forward orders six months in advance.

He expected the current energy crisis in China, which has led to blackouts and temporary factory closures, to further impact the supply chain.

The Ministry of Foreign Affairs and Trade’s monitoring of global supply chains between July and September reported sea freight congestion was more likely to affect southbound bookings from Asian Ports to New Zealand and confirmed regional power cuts in China would likely increase shipping delays.

Despite the issue with supply, Matheson had been seeing consistent demand for e-bikes since the beginning of the Covid-19 pandemic from a diverse range of buyers.

“A lot of people are looking for alternative forms of transport, some are using them to go to central Otago and do the trails…. we have people travelling in motor homes and caravans who are using it as a transport option,” he said.

Switching to active modes of transport, which includes e-bikes, is a key mitigation option in the Net Zero Southland report released earlier this year, which outlines how Southland can achieve net zero emissions by 2050.

The Southland EV and Hybrid Uptake Research survey released by Great South found the biggest limitation to high uptake of e-bikes in Southland is supply.