Why are electric road bikes so expensive?

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The Short Answer

E-bikes are expensive due to high demand, limited parts availability, and ongoing technological advancements. However, as technology improves and more accessible, costs are expected to decrease. Tax incentives and potential savings on gas and maintenance can help offset the initial expense.

Electric bicycles are fast-becoming a viable mode of transportation for many people of all cycling levels. They feel like conventional bikes to ride, but come with a small battery-powered motor that provides assistance while pedalling. Appealing for their ease of acceleration with less effort from the rider, e-bikes are being used more and more for commuting, tourism, sport, and leisure.

According to the Confederation of the European Bicycling Industry, about five million e-bikes were sold in the UK and Europe in 2021. However it’s no secret that e-bikes come with a steep price tag that may shock first-time buyers. In this article we’ll break down why electric bicycles are so expensive, and what exactly you’re getting for your money. 

How Much Do Electric Bicycles Cost?

E-bikes range in cost from £600 to £5,000, with some models priced up to (and well over) £10,000. 

Budget bikes in the lower range sacrifice power and quality of components. A decent e-bike for commuting will cost around £1,250 to £3,000, and for mountain e-biking £2,000 to £3,000 is the norm. Any increase in cost after that will be accompanied by advanced quality and features. 

Why Are Electric Bikes So Expensive?

The battery, motor, electronics, and engineering of an e-bike means it costs more to produce than an average bike. Even the frame design and extra components (racks, saddle size, throttle, sensors, lights, good-quality locks) add up. 

Brands such as Shimano, Yamaha, and Bosch offer premium models with powerful motors and batteries, which drives up the price of their products. 

As a buyer, it is important to recognise your experience level and the kind of riding you want to take on with your e-bike. Then, determine the components that are important to your riding experience. The best e-bike for commuting will have different features from the best electric mountain bike, and prioritising the right features for you is more important than breaking the bank to have it all.

How Much Do Electric Bike Batteries Cost?

The battery is the most expensive component of an e-bike, generally costing 30-40% of the overall bike price. This ranges from a few hundred pounds to well over £1,000. Larger batteries cost more, but they allow for further distances travelled. 

Why Are E-Bike Batteries So Expensive?

Batteries on electric bicycles include expensive materials and are intricately constructed to maximise lifespan and ensure hardiness against the elements. They also work with the motor to run the bike efficiently, and the engineering of such a system comes at an expense.

The type of battery on an e-bike will dictate the shelf life of the battery, or how many charging cycles (from 0-100%) it can complete. Batteries on electric bikes are commonly Lithium Ion, which have a 2-4 year shelf life and up to 1,000 charging cycles. These batteries are compact and offer the same efficiency as their cheaper counterparts with a fraction of their size and weight. 

Will the Cost of E-Bikes Go Down?

The surge in demand for electric bicycles during and following the COVID-19 pandemic has led to a rise in prices, and e-bikes are expected to remain a bestseller. For now, with high demand and a shortage in available parts, costs will remain the same or even go up, but not for long. 

As technology improves and is made more accessible, the cost of these machines will eventually go down. Tax incentives have been instituted in some countries to offset the costs of owning an e-bike, helping greatly with the overall expense. 

When weighing out the pros and cons of an e-bike, the hefty price tag may be a deterring factor. However, using an e-bike may mean that your car stays in the garage more, leading to money saved on gas and maintenance.

Many cities are implementing infrastructure to support the road cyclist, opening up ease of travel for e-bike riders and other traditional bike commuters. If it fits your budget and cycling objectives, an e-bike can be a great choice for you!

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Electric bikes or e-bikes are very exciting and fun to ride, giving you a unique twist on traditional bike riding. You can find them available from some of your favorite bike manufacturers, but this is still a relatively new market. Essentially these bikes use an electric motor to help propel you forward, giving you a little extra boost when out for a ride. Everyone should have one! But can everyone afford one?

Why are electric bikes so expensive? Just a few of the key reasons that electric bikes cost so much more than a traditional bike are:

1. The frame
2. The battery
3. The motor
4. The electronic controller
5. Higher quality components

Compared to a traditional bike, an electric bike can cost well over $1,000 with bigger name bikes costing in the $10,000 range. The main difference in price for these e-bikes comes from the cost of – well, everything that makes them different from a traditional bicycle.

What Contributes to the Cost of Electric Bikes?

Electric bikes can be found starting at around $1,000, while higher quality electric bikes cannot be found for under $2,000 – and many are much higher.

These prices are surprising to many who have just started researching this form of bike, but they make a lot of sense when you break down the costs. There are several reasons why electric bikes come in at such a high price tag, but just some of these are:

1. Electric Bikes Use a Higher Quality Frame

While we will further discuss the use of higher quality components in e-bikes, one of the most important quality parts of the bike is its frame.

A higher-end electric bike can weigh more than double what a conventional bike does because of its frame alone. Actually, these bikes weigh over 50 pounds, but this is required so that the frame can support the rider and the added weight of the motor and battery in a safe, comfortable way. 

There are electric bikes that are of high quality but have lighter frames made from more expensive materials.

However, as you could guess, these lighter weight, higher-end frames raise the price of the bike substantially.

You will also find that many manufacturers are now designing custom frames that have the battery built right into the frame, but these can also be more expensive. 

2. The Added Cost of the Battery

Perhaps the biggest reason that electric bikes are more expensive than others on the market today is that they feature a battery.

The battery alone on most e-bikes will cost between $500 and $1,000, clearly raising the price of the overall piece substantially. 

Most electric bikes will feature a lithium-ion battery since this style tends to be more efficient. These batteries also minimize the weight of the bike as they are a lighter option of battery.

This lighter battery allows the bike to be easier to cycle. You want to invest in an e-bike with a better battery, because it will last longer than a cheap battery. A good electric bike battery will last up to 4 years before it needs to be replaced.

3. Electric Bikes Utilize a Motor

Another big factor that affects the cost of the electric bike is clearly the motor.

Traditional bikes do not need to feature a motor, but electric bikes utilize a motor to assist you when you pedal.

With an electric bike, you will either have to twist a throttle while you pedal to use the motor, or you may have a pedal-assist e-bike. 

These motors have to be specifically fitted for each bike, which also increases cost due to the added labor. Also, these are usually specially made and can add even more to the overall costs of the bike. 

4. Electric Bikes Need Higher Quality Components 

In addition to having a higher quality frame, several components of the electric bike need to be higher quality.

These bikes need to have the ability to support your weight, protect and sustain the motor and battery, and handle this all at the speed of a moving bike. 

For example, you must have extremely high-quality brakes to stop a fairly heavy bike at an advanced speed. Of course, having higher-end parts will also continue to raise the price. 

5. The Electronic Controller Price 

The electronic controller is clearly something that traditional bikes will not need and continues to advance the price of the bike.

This part basically serves as the brain of the bike and helps your bike communicate between the battery and motor. It will control the speed of the electric motor and also serves as a brake for the bike. 

When you apply the brakes on your electric bike, this electronic controller will kill the power. The controller will use the power provided by the battery and drive it to the motor.

The exact type of controller used on your bike will differ depending on the brand of bike that you purchase. These controllers usually have adjustments for tire size, Km or miles, and for monitoring a trip mileage and the overall mileage. 

Electric Bikes are a Niche Market

While the cost of the components of the electric bikes is a huge part of their overall price, another big factor is that they are not widely purchased.

It is only in recent years that this style of bike has become popular among consumers, but they are still more a niche market.

This lowered demand means that companies can sell them for a larger price, driving up costs even more. 

Many manufacturers are not able to create products in bulk, which is also more expensive.

This lowers their ability to benefit from economies of scale, which are the cost savings that come with mass production of products. Traditional bikes can be produced in bulk and more mass-produced, leading to lowered prices for manufacturers. 

Also, due to the lowered popularity of these bikes, there are not many manufacturers that are on the market today. This means that there is a lowered competition for manufacturers to compete for a better price.

Hopefully, with the increase in popularity in recent years, there will be an increase in competition and better pricing. It’s been my observation that even in the last year there has been a drop in prices for electric bikes compared which I can only attribute to the increased popularity.

Choosing Your Electric Bike 

If you want to purchase an electric bike, it is worth saving for a more expensive option. While there is a chance that these prices will lower over the next few years, this is not guaranteed.

Now is as good of a time as any to purchase your bike if you have the budget needed for this. 

The higher price bikes are going to be made from higher-end materials and are usually lighter in weight. However, there are many great mid-range or even lower-range bikes out there that are great. The key thing to remember is that you should read reviews, study the manufacturer, and make the best choice for your personal budget needs.

To better understand what you will get for your money, we will break down what each price range equates to in electric bikes: 

One of the best entry level e-bikes on the market. It’s the SwagTron Foldable E-Bike.

• $1,000 Electric Bikes – This is basically an entry-level bike and the lower end of the price range for electric bikes. These usually feature lower-end components and may not last as long as more expensive options. Also, the frame is usually made from aluminum and will be heavier. If this is your budget, the SwagTron folding eBike on Amazon might be the right bike for you. You can view it here. It’s not only an electric bicycle, but it’s a folding bike which can be very beneficial.
• $2,000 Electric Bikes – This is a great starter bike for those who do not want to spend an excess of money but want something that will last. These bikes will usually use decent components but still not the best of the best. Usually they’re sturdier, have better batteries, and have extra accessories. Check out Rad Power Bikes for solid e-bikes in this category!
• $3,000 Electric Bikes – This is probably a great bike for almost any rider. These bikes usually utilize not only the best components but are more cosmetically pleasing to riders. Many of these bikes are made from carbon, making them lighter, and have nice welds. You can also get electric cargo bikes at this price or e-bikes that have space a seating arrangement over the back wheel to carry another rider. I’m looking at getting one of these to carry groceries and my young toddler around town.
• $4,000 Electric Bikes – These are the most cosmetically pleasing of the electric bikes, featuring more carbon fibers and added perks. These should use the best of the best when it comes to the components used and may feature special electronics that others do not. These bikes are made to last and a great choice for someone who has the budget and wants to go beyond simply purchasing for the basic riding factor. They’re the cutting edge e-bikes. Great for showing off, but maybe not the most practical for most bike commuters and cycling enthusiasts.

Related Questions

Will e bikes come down in price? This is purely speculation, but I do think we will see a slight decrease in electric bikes over time. They are definitely becoming more popular than ever before around the world. I think we’ll see cheaper electric bikes hit the market, but this means they will also have a reduction in quality. Just because something is cheap doesn’t mean that it’s a good product. With this said – most of the top tier electric bikes will continue to stay in the $2,000 – $3,000 range. This is only my opinion. Time will tell.

Are electric bikes expensive to maintain? No, an e-Bike is relatively inexpensive to maintain. You’ll need to do maintenance on it just as you would a regular bicycle. The only difference is that every 3 to 4 years you’ll need to replace the battery. Other than that it’s keeping the chain, tires, hub, and gears clean and maintained just like you would a regular bike.

You can get more information about electric bicycles by reading more articles here.