Core Viewpoint - BYD has announced its entry into the electric two-wheeler and three-wheeler market, promoting the transition from lead-acid to lithium iron phosphate batteries, which is expected to reshape the market landscape as new regulations come into effect in 2025 [2][4]. Group 1: New Standards and Market Growth - The new national standards for electric two-wheelers will be implemented in September 2025, leading to a resurgence in the industry as supply-side uncertainties decrease and demand-side policies like trade-in incentives continue to stimulate growth [4][5]. - A-share listed companies such as Aima Technology and New Day have reported significant revenue growth in Q1 2025, with Aima achieving 6.232 billion yuan and New Day 1.054 billion yuan, reflecting year-on-year increases of 25.82% and 39.47% respectively [4]. - The trade-in program has seen substantial uptake, with over 3.34 million electric bicycles exchanged by April 2025, indicating a strong market demand for compliant vehicles [4]. Group 2: Compliance and Safety Standards - The implementation of the "National Strong Standard" for lithium batteries aims to eliminate substandard products and enhance safety, thereby promoting high-quality development in the lithium battery market for electric two-wheelers [5][6]. - Companies are investing in technology upgrades to meet the new standards, with notable advancements in battery safety and performance [6][7]. Group 3: Battery Exchange Model - The battery exchange model is gaining traction, with the market for electric two-wheeler battery exchanges projected to grow significantly, supported by government policies and infrastructure development [10][11]. - The market size for the battery exchange industry is expected to reach 84 billion yuan in 2023, with projections of 105 billion yuan by 2030 [11]. Group 4: International Market Expansion - China's electric two-wheeler exports surpassed 40 billion yuan in 2024, marking a compound annual growth rate (CAGR) of approximately 18% from 2017 to 2024 [15][16]. - The demand for electric two-wheelers is surging in overseas markets, particularly in Europe and Southeast Asia, driven by government incentives and environmental concerns [16][17]. Group 5: Sodium-ion Battery Development - The sodium-ion battery technology is emerging as a competitive alternative to lithium and lead-acid batteries, with several companies launching products aimed at the light-duty power market [19][20]. - The market penetration of sodium-ion batteries in the two-wheeler sector is expected to reach 41% by 2030, with a projected demand of 40 GWh [22]. Group 6: Competitive Landscape of Battery Types - Various battery formats, including cylindrical, prismatic, and pouch cells, are being developed to meet diverse market needs, with cylindrical batteries showing significant growth in the two-wheeler segment [24][30]. - The market for cylindrical batteries is projected to grow by 150% in 2024, reaching 2.5 GWh, as companies like BYD and others expand their product offerings [24][33].