Yamaha Motor Corporation will end its e-bike business in the U.S. by the close of 2024, joining the post-pandemic e-bike market shakeup. The Japanese giant shared the news in a letter to its U.S. dealers, citing unsustainable business conditions, according to Electrek. As part of the exit strategy, Yamaha is offering up to 60% off remaining inventory.
The company’s departure highlights ongoing struggles in the U.S. e-bike industry. A pandemic-era sales boom led to market saturation, creating an oversupply problem. As demand softened, companies faced excess stock and stiff competition. Yamaha, whose e-bikes entered the American market in 2018, felt the pressure.
Yamaha’s bikes have consistently featured higher-end components and proprietary motors, but their premium price points were often hard to justify in a market crowded with budget-friendly alternatives. The company acknowledged the challenge, emphasizing the difficulties of sustaining a profitable model in the current landscape.
The exit marks the end of a relatively short tenure. Yamaha first launched its electric power-assist bikes in Japan in 1993 but waited until 2018 to make a splash in the U.S. with models like the Urban Rush and Cross Core. Despite favorable reviews and a reputation for quality, the brand couldn’t keep up in North America.
Yamaha Offers Extended Support and Discounts
To manage its exit, Yamaha has extended its “Fan Promotion” program. Buyers can score deep discounts on new e-bikes until June 30, 2025, and the company will honor its five-year warranty, offering parts and service support. Dealers received reassurances of Yamaha’s commitment to customer service, even as the company winds down operations.
The broader market signals a tough time for e-bike makers. Juiced Bikes, a well-known direct-to-consumer brand, sold at auction for just $1.2 million last month. These developments raise questions about the sustainability of high-end offerings in a market still finding its post-pandemic balance.
Featured Image courtesy of Yamaha Motor Corporation
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