Luyuan bets on smart growth

Chinese electric two-wheeler maker Luyuan Group is expanding its overseas presence and developing smarter products as China's domestic market shifts toward replacement-driven demand.

China's electric two-wheeler market is increasingly driven by replacement demand after years of rapid expansion. Replacement purchases account for about 80 percent of domestic demand this year, according to Luyuan Group.

Overseas markets have become a key area of expansion for Luyuan. The company now sells its products in more than 80 countries and regions, while its overseas sales volume rose about 40 percent year-on-year in the first half of 2026.

"Competition in overseas markets will increasingly be driven by technology and brand strength, rather than low-cost products or contract manufacturing," said Liu Xunzi, deputy director of Luyuan Group's Brand Research Institute.

Liu said stricter compliance requirements and potential trade barriers mean Chinese electric two-wheeler makers need to place greater emphasis on product development, technical standards and local operations.

Luyuan has established six innovation centers in Thailand, Singapore, Germany, Spain, Uzbekistan and Nigeria. Their functions range from production and supply-chain support to R&D, design, engineering collaboration, market research and regional operations.

The company said its international strategy combines China's supply-chain strengths with global R&D and design resources and local operations. It plans to focus on e-bikes and off-road electric motorcycles in Europe and North America, and on medium- and high-speed electric scooters in Asia, Africa and Latin America.

Smart technologies are also becoming a key area of product development. Luyuan said China has about 400 million electric two-wheelers in use, with functions such as positioning, onboard systems, sensing and battery management becoming increasingly important in product upgrades.

Smart features for electric two-wheelers require a different approach from those used in cars. Limited space, tighter cost constraints, lower power budgets and more demanding operating conditions mean that automotive technologies often need to be redesigned for two-wheeler applications.

Luyuan is also drawing on its work in robotics to advance its core two-wheeler business. Liu said advances in motor control, thermal management and precision-drive technologies for robotic applications could be adapted to improve the durability and performance of electric two-wheelers.

Liu said the company aims to move beyond product exports by strengthening its capabilities in product development, compliance and local operations.