(Bloomberg) -- Dutch electric bike maker VanMoof unveiled updated versions of its e-bikes, along with higher prices due to supply chain constraints.
New features include LED displays on the handlebars that provide information on battery levels and speed, a torque sensor in the motor that adjusts the level of assistance based on how hard the rider pushes against the pedals, and a step-in frame option that makes it easier for riders to mount and dismount. With a base price of $2,998, the VanMoof S5 and A5 also come at a more than 20% price increase over their predecessors, the S3 and X3, which sell for $2,448.
The $550 increase follows a $150 hike in the price of the S3 and X3 earlier this year, reversing what had been a downward trend for the 13-year-old company. When VanMoof launched the S3 and X3 in 2020, each model sold for just below $2,000—a $1,400 drop from the previous iteration of its e-bikes.
VanMoof spokesperson Austin Durling said in an email that the company is not immune from the inflationary pressures facing electric vehicle makers and hardware retailers of all kinds. “Our price adjustment is a result of the increased cost of materials and other supply chain challenges the world is facing,” said Durling.
The e-bike industry has begun to gain traction in the U.S., thanks in part to long-term declines in the price and weight of lithium-ion batteries. The average U.S. selling price of an e-bike over the twelve months ending in January of this year was $1,825, according to the NPD Group, which collects point-of-sale data from bike shops, outdoor stores, and other big-box retailers but does not capture direct-to-consumer brands such as VanMoof.
Overall e-bike prices declined by 10% from the prior year, according to NPD, even as the average price for traditional adult bikes rose by 10% to $466. Yet the industry has begun to split, says NPD outdoor industry analyst Dirk Sorenson, between basic transit e-bikes and higher end mountain and road e-bikes, which are seeing price increases.
Price remains a major barrier for many potential buyers who are accustomed to paying less than $500 for a traditional bicycle. Late last year, the Build Back Better spending bill raised hopes of a federal tax credit of up to $900 for the purchase of an e-bike. The bill's death in the Senate has left advocates pushing for state and local programs to subsidize the industry.
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