Guotai Haitong Securities highlighted motorcycles as essential transportation across India and Southeast Asia, while electric bicycles gain significant traction in European and Japanese markets. Two-wheelers thrive as preferred short-distance mobility solutions due to their convenience and efficiency. With the global electric two-wheeler sector still in its infancy, leading Chinese manufacturers Yadea Group (01585.HK) and Aima Technology (603529.SH) are rapidly scaling overseas operations through strategic factory setups and channel development. The report asserts that with first-mover advantages, agile strategic execution, optimized supply chains, and deep channel expertise, these industry leaders are well-positioned to capitalize on the expansive international two-wheeler market.

Core insights from the analysis:

1. **Electrification Momentum Strengthened by Policy Shifts**: Carbon neutrality targets accelerate the transition from fuel-powered motorcycles, which contribute substantially to pollution and face higher operational costs versus electric alternatives. Southeast Asia's motorcycle-dense markets show increasing policy support: Vietnam's Hanoi and Ho Chi Minh City plan phased motorcycle restrictions; Thailand implements CO2-based taxation; Singapore targets complete fuel vehicle phase-out by 2040; Vietnam commits to carbon neutrality by 2050, reinforced by its COP26 net-zero emissions pledge.

2. **Performance and Economic Advantages**: Electric two-wheelers demonstrate lower emissions, reduced noise pollution, diverse energy sourcing, and superior cost efficiency in acquisition and maintenance. Premium models offer enhanced smart features. While performance gaps persist in extreme conditions, urban riding experiences increasingly mirror conventional motorcycles. Component synergies with electric vehicles and maturing battery technology promise further cost reductions.

3. **Emerging Market Potential Mirrors China's Trajectory**: India and Southeast Asia replicate China's 2000-2010 urbanization phase—expanding cities with inadequate road infrastructure. Regulatory pressures and affordability dynamics favor electric two-wheelers for short-distance commuting. With Southeast Asian motorcycles averaging $4,010 and scooters $1,310 versus $54,000 electric cars, these solutions better align with regional purchasing power.

4. **Export Growth Horizon**: China dominates global bicycle (89% export share in 2018) and motorcycle exports (54%, 33%, and 35% in 2019-2021). Yet electric bicycle exports represented merely 5.2% of 2020 production volume, indicating substantial expansion potential. Domestic market leaders possess mature supply chains and channel expertise to leverage competitive advantages internationally.

Key risks include geopolitical volatility and localized policy uncertainties.