Niu Technologies Sells Nearly 400,000 E-scooters in China, Overseas Sales Fall by 11.2%
Niu Technologies, a two-wheeled electric vehicle (EV) brand, released its third-quarter sales data on Monday. The company sold 397,079 e-scooters, including 392,112 in the Chinese market and 4,967 in international markets, representing 58.3% year-on-year growth.
In October 2018, Niu Technologies was listed on the Nasdaq in the United States under the stock code “NIU.” The company has sold 799,700 e-scooters since the beginning of the year. At a press conference earlier this year, CEO of Niu Technologies Li Yan said that the company’s target in 2021 is between 900,000 and 1.1 million units.
Growth in the Chinese market was mainly driven by retail network expansion and promotion activities. The company continued its fast expansion by adding 320 new stores in China during the third quarter of 2021. There were 2,686 stores in China at the end of September. The company also provided sales discounts for selected models during the third quarter to encourage new customers to adopt e-scooters for urban commutes and accelerate the replacement of outdated and non-compliant e-scooters.
Founded in 2014, Niu Technologies has laid out market operations in Europe, the United States, Southeast Asia and South Asia. According to the recent announcement, the decreasing number of e-scooters sold in international markets was mainly caused by the resurgence of COVID-19 in Europe during the third quarter and ongoing difficulties in ocean freight shipping.
The company also said that with the successful product launch of kick-scooter, KQi3, it received the order of more than 15,000 units during the third quarter and started to deliver them in September. 497 kick-scooters were included in the sales volume from international markets in the third quarter and the remaining orders will be shipped soon.
Out of the total sales volume, the units of G0, F0 and C0 models sold during the third quarter of 2021 represented approximately 40.6%. These models have lower sales price and gross margin compared with others, and a high proportion of sales volume from these models has negative impacts on the blended revenues per scooter and overall gross margin for the third quarter of 2021.
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On September 22, Niu Technologies announced the resignation of former CFO Zhang Peng, and the company began to look for a new individual to fill the vacancy. Zhang will continue to work closely with the company as a consultant in the next three months to promote a smooth transition.