Brammo reportedly sold very few Enertias at $8000. Zero killed the XU after very limited sales at $8000. I think limited dealerships hurt the less expensive bikes - if you have $20k to spend you will probably be willing to spend a lot more time tracking down a dealer than if you have $8k. Nevertheless, clearly the market for ~30 mile small electric bikes from unknown brands is very small.
What if two things change?
1. Offer a small bike from a known brand with an established dealership presence. Eg Yamaha.
2. Offer a small bike at a very low price. At what price would a small electric bike take off and become a sales success?
At $1000 clearly they would sell every one they could make.
At $8000 probably they would not sell very many.
So some price in between may be profitable.
Honda's 2014 Grom represents a probable target. 125cc, 225 pounds, sub-60 mph, $3000.
If Yamaha sacrificed range for power, what could they build for a 60 mph (10 kW) electric motorcycle and how close could they get to the $3000 price point?
Here are the electric-specific components:
$200 10 kW motor
$800 2 kWh battery pack (20 mile range)
$200 1 kW onboard charger w/ 12V DC/DC
$300 high-amp controller
$1500. I would bet the gas power train for the Honda bike probably costs around $800 in volume: 125cc air-cooled engine, fuel tank, injection system, ignition, exhaust, 12V battery, starter motor, alternator, transmission.
Suppose Yamaha drops the transmission, LED lighting, etc and releases their bike at $4000. Lighter and faster than the Grom. Make the battery pack removable, split it into two modules like the Zero pack @ 20 pounds each and allow the same type of unequal SOC draw. Sell extra battery modules @ $600 each.
Design the bikes for reliability, and offer a five year power train warranty. Emphasize that the five year operating costs for the Yamaha bike will be far cheaper than the Grom.
Could Yamaha do it? Would Yamaha do it?