According to Bike Europe, Okawa's preparations to open a production facility in Europe have already started. In the head office of Okawa Motor Technology Co. Ltd in China the first motor assembly line with a high level of automation was being put up during Bike Europe's recent visit. Once fully operational a copy of this assembly line will be shipped to Portugal.
The European factory of Okawa will be based in Anadia, Portugal and production is expected to commence early 2025. Anadia was selected as location due to the close proximity of several big e-bike assemblers. Okawa is also targeting to specify 40% local content, while the factory will be operated by 3 or 4 local people. The new assembly line, which is up and running and being tested in Suzhou, can handle all 16 different steps to assemble the motor fully automatic. That includes performance testing and a visual check-up via a no-shadow light box.
“The industry experienced how vulnerable a long supply chain is and our customers are open for a change in order to prevent that products are not available for a long time,” explains Okawa CEO Luca Du. “At the same time the market for e-drive system suppliers is very concentrated and dominated by a few companies. This makes the industry even more exposed to delivery issues.”
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This dominant position is rather remarkable, looking at the large number of e-drive brands in the market. “We see the market is changing and product managers are looking for a second or third drive train supplier. This additional brand should give them the opportunity to distinguish some e-bikes in their portfolio from competitors,” explains Luca Du. “In the thriving e-bike market in Europe our proposition gives us an opportunity to gain market share. We don’t want to be one of those many e-drive manufacturers from China but clearly stand out in the market and make a contribution to the technological development of the e-bike.
Okawa Motor Technology Co. Ltd has been on the market in Europe for approximately three years. The company was originally founded by Luca Du in 2020 out of Yadea, China’s biggest producer of electric two wheelers, which still holds a small share in the company. It produces a range of mid and hub motors, The company also offers a subscription model for its motor systems which reduces operational risk for users such as last-mile delivery companies, where the motor is a mission-critical part of operations. The company opened its European headquarters in the Netherlands in March 2023, and is looking to use the investment to drive further growth.
“We are the only e-drive manufacturer who offers a subscription-based model,” explains Luca Du. “This challenged us to develop a high-quality product. After all, our business model is based on a long lifespan and that’s in the benefit of our customers. Another big advantage of a long lifespan is the low carbon footprint of Okawa. This combination particularly appeals to more and more younger people. They tend to ‘own’ less and less which is reflected by the rising popularity of sharing systems. This is also our largest customer base. Sharing system providers know that the cost of repair is always much higher than sourcing lower cost components. For a successful business model their e-bikes should be hassle free and the down-time needs to be limited as much as possible.”
Okawa designed a fully separated, sealed and enclosed oil compartment inside the motor. “The durability of this oil, made by ZF and known in the automotive industry, is much higher than grease which is regularly used in e-bike motors,” explains Luca Du. The subscription model is also available for individual customers. In case a motor might break down, European customers can send it to Okawa’s service center in Amersfoort, the Netherlands for a complete overhaul. Customers won’t have to wait for this revision as they will get one of the motors in stock in the Netherlands. Not surprisingly, Okawa writes in its mission statement that it wants to make ultimate products and dare to step onto the international first-class stage.
The European factory of Okawa will be based in Anadia, Portugal and production is expected to commence early 2025. Anadia was selected as location due to the close proximity of several big e-bike assemblers. Okawa is also targeting to specify 40% local content, while the factory will be operated by 3 or 4 local people. The new assembly line, which is up and running and being tested in Suzhou, can handle all 16 different steps to assemble the motor fully automatic. That includes performance testing and a visual check-up via a no-shadow light box.
“The industry experienced how vulnerable a long supply chain is and our customers are open for a change in order to prevent that products are not available for a long time,” explains Okawa CEO Luca Du. “At the same time the market for e-drive system suppliers is very concentrated and dominated by a few companies. This makes the industry even more exposed to delivery issues.”
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This dominant position is rather remarkable, looking at the large number of e-drive brands in the market. “We see the market is changing and product managers are looking for a second or third drive train supplier. This additional brand should give them the opportunity to distinguish some e-bikes in their portfolio from competitors,” explains Luca Du. “In the thriving e-bike market in Europe our proposition gives us an opportunity to gain market share. We don’t want to be one of those many e-drive manufacturers from China but clearly stand out in the market and make a contribution to the technological development of the e-bike.
Okawa Motor Technology Co. Ltd has been on the market in Europe for approximately three years. The company was originally founded by Luca Du in 2020 out of Yadea, China’s biggest producer of electric two wheelers, which still holds a small share in the company. It produces a range of mid and hub motors, The company also offers a subscription model for its motor systems which reduces operational risk for users such as last-mile delivery companies, where the motor is a mission-critical part of operations. The company opened its European headquarters in the Netherlands in March 2023, and is looking to use the investment to drive further growth.
“We are the only e-drive manufacturer who offers a subscription-based model,” explains Luca Du. “This challenged us to develop a high-quality product. After all, our business model is based on a long lifespan and that’s in the benefit of our customers. Another big advantage of a long lifespan is the low carbon footprint of Okawa. This combination particularly appeals to more and more younger people. They tend to ‘own’ less and less which is reflected by the rising popularity of sharing systems. This is also our largest customer base. Sharing system providers know that the cost of repair is always much higher than sourcing lower cost components. For a successful business model their e-bikes should be hassle free and the down-time needs to be limited as much as possible.”
Okawa designed a fully separated, sealed and enclosed oil compartment inside the motor. “The durability of this oil, made by ZF and known in the automotive industry, is much higher than grease which is regularly used in e-bike motors,” explains Luca Du. The subscription model is also available for individual customers. In case a motor might break down, European customers can send it to Okawa’s service center in Amersfoort, the Netherlands for a complete overhaul. Customers won’t have to wait for this revision as they will get one of the motors in stock in the Netherlands. Not surprisingly, Okawa writes in its mission statement that it wants to make ultimate products and dare to step onto the international first-class stage.
