Zero Motorcycles believes that lenders will have a higher “appetite” for electric vehicles as the market grows in 2019, Senior Manager of Marketing Communications Dan Quick told Powersports Finance.
“Currently, EVs represent a smaller portion of the overall motorcycle market,” Quick said. “However, while EVs may be a simple hedge to [a lender’s] other powersports channels today, companies like Zero will represent a much larger revenue generator for lenders in the near future.”
EVs are on the rise in powersports as OEM Zero experienced “double-digit” sales growth in 2018, Quick said without specifying volume. Broadly, the U.S. electric bike market is forecast to grow 16% through 2024 as more products are released, according to a report from MarketWatch.
Zero does retail financing through FreedomRoad Financial and is not actively looking to partner with any other lenders. Other lenders who finance EVs include ThunderRoad Financial and — once the LiveWire launches — Harley-Davidson Financial Services.
The OEM feels that financing is a “huge sales tool” to dealerships, and provides business opportunities for lenders, Quick added.
“Certainly lenders are in the business of financing new vehicles, and our dealer partners are going to give them plenty of opportunities to do that in 2019,” Quick said. “2019 will be a benchmark year for Zero and [for] electric motorcycles, and the added momentum on top of our already double-digit growth will attract more attention to this category from riders, dealers, and lenders alike.”
Zero’s all-new naked streetbike model, the SR/F, will launch in February. Based in Scotts Valley, Calif., Zero works with 200 dealerships across North America and Europe.