The latest: Niu Technologies (NIU.US) reported that sales of its electric scooters soared 58% in this year’s third quarter, reaching 397,079 units for the three-month period. The vast majority of those sales were in China, which logged 392,112 units sold during the period.
Looking Up: Niu said the strong domestic growth was driven by an aggressive expansion that saw it add 320 stores during the quarter in China.
Take Note: While domestic sales were strong, the opposite was true for the tiny portion sales that came from exports. The company sold 4,967 electric scooters during the quarter, down 11% from the same period a year ago.
Digging Deeper: Niu is capitalizing on China’s drive to promote clean energy vehicles, which includes both cars and scooters, as part of efforts to clean up the country’s air and reduce carbon emissions. The company also wants to become a major exporter and was building up a network to boost its foreign sales. But those efforts have been thwarted recently by high shipping prices and lingering effects of the global pandemic.
Market Reaction: Investors largely ignored the news, with Niu’s shares down just under 1% in the two trading days after the announcement. The third quarter sales increase was identical with the second quarter, when Niu’s sales also rose 58% to 252,998 electronic scooters.
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