04/12/2019

ContiTech Announced withdrawal from E-Bike market

Antje Lewe, a spokesperson and head of media relations for ContiTech,  revealed this exit to Bike Europe this morning. "In the interest of economic efficiency, we have decided to stop all electric bicycle product updates and their related businesses by the end of 2019. In the future, we will invest in other areas with good growth momentum." Li Wei told reporters.

Financial loss

ContiTech spokesman Li Wei denied that the decision to withdraw from the electric bicycle market is related to the third-quarter financial report of the Continental Horse brand just released yesterday. During the third fiscal quarter, the German-based tire and brake system maker suffered a significant loss. The financial media believes that the financial loss is due to the delayed signs of recovery in the global automotive market. To this end, Continental Horse Group has already spent 2.5 billion euros in allocations, and the company currently has a market value of 45 billion euros (2018 total sales).

Change in investment direction

In explaining the decision that ultimately led to the  brand's decision to withdraw from the electric bicycle business, Li Wei said: "This decision is related to horse's internal audit of all businesses, which is carried out regularly and is the group's strategic portfolio management As part of the process, the group can continuously find potential investment directions to ensure the continuous development of the group's business. The review process involves the allocation of group investment funds, so the group has decided to shift its investment direction from the electric bicycle market to more growth Areas of momentum. "

Existing contracts and after-sales policies

A ContiTech spokesman said that currently 48V Revolution and 48V Prime products have been delivered or confirmed, and 36V series products will guarantee their delivery and supply of spare parts according to existing contracts. Because of this, the service team for related products will continue to run until 2022.



Technology to stay

Continental Bicycle System Co., Ltd. has been manufacturing and selling electric bicycle drive systems since November 2014. It is one of the first German car brands to enter the electric bicycle market, and the first to enter the market is Germany's Bosch. , The latter began related business in 2010. Auto supplier brands have always been following Bosch's footsteps. Therefore, German groups such as SACHS, Rheinmetall, Anpio, Marquardt Group, Ochsler, and Finter have entered the electric bicycle market.

As the domestic horse brand's 48V and 16V mid-mounted motor technology is still in the development stage, it is still unknown whether other brands are interested in these technologies in the hands of  ContiTech or even take over operations.