IN BRIEF
Bafang, the electric bike motor manufacturer, has been through two difficult years marked by a sharp drop in revenue. In the first quarter of 2025, the company managed to stabilise its revenue, posting sales of 1.33 billion yuan. This slight recovery rests on a rigorous austerity strategy and a refocus on the European market. Despite cutting its research and development investment, Bafang is banking on innovation to compete with rivals such as Bosch.
Sharp declines, but stabilisation in sight
Bafang, a giant of electric bike motor systems, has been through turbulent years with a series of substantial falls in sales. Between 2022 and 2023, the company saw its revenue drop by 43%, followed by a further decline in 2024.
In 2025, however, the manufacturer managed to stem the bleeding, with figures showing stabilisation. The first quarter of 2026 even recorded a slight improvement, with sales of €48 million against 39 million a year earlier.
An effective austerity strategy
To cope with the difficult climate, Bafang opted to cut its costs. Among the measures taken, financial expenses were reduced by 82%, while the budget allocated to research and development fell by 29%.
That strategy enabled the manufacturer to post a net profit up 61% for 2025. The improvement rests mainly on tighter control of spending and a refocus on the most promising markets.
Europe, a strategic market for Bafang
Despite the challenges, Europe remains a key market for Bafang. With distributor stocks gradually returning to normal, the company hopes to see fresh orders strengthen its position. Bafang’s management notes a general improvement in the economic climate in Europe, although the situation in the United States remains more complicated because of fluctuating tariff policies.
The European market, with penetration rates above 50% in some countries, represents an opportunity that Bafang hopes to seize in full, despite its challenge of brand recognition against competitors such as Bosch.
