CITIC Securities: The 3C standard revision for electric two-wheelers causes short-term pain but is conducive to optimizing the competitive landscape in the long run.

CITIC Securities noted that the new version of the 3C certification for electric bicycles has been implemented, aligning with new mandatory standards such as electrical safety and lithium batteries. Certificates for models from multiple brands have been suspended en masse; those that fail to switch to the new version by the deadline will have their certificates revoked and will be unable to be registered for road use or sold. In the short term, both production and sales are under pressure: on the production side, certification costs increase, the pace slows, and outdated models are phased out; on the dealership side, inventory becomes unsalable and requests for returns or exchanges rise. In the short term, focus is on the enforcement intensity of the mandatory standard taking effect on November 1 and on inventory digestion; over the medium to long term, after the pains of regulatory adjustment, this is conducive to gains in share for leading players and to an improved competitive landscape.