In Europe’s mild, rainy climate, where jagged coastlines are shaped by wide bays and natural harbors, cities like Flensburg, Kiel, and Lubeck have thrived for centuries. With a well-developed network of water and land transport, boats have become an integral part of daily life.
Europe’s boating industry mainly focuses on civilian sectors such as tourism, research, and aquaculture. Most boats are smaller, designed for navigating coastal regions, rivers, or lakes. However, in recent years, human activities have increasingly impacted the environment, and the boating industry faces growing pressure to reduce its reliance on diesel and gasoline as natural disasters linked to greenhouse gas emissions become more frequent. Electrification has emerged as a crucial strategy for cutting emissions and transitioning the sector toward a more sustainable future.
Electric vehicles have captured attention in recent years, and this transformation is now reaching new transport sectors—boats among them. The demand for electric boats in Europe is surging, with the supply growing to match. A 2023 report cited by 36Kr noted that the number of electric boats available in 2022 had increased by 160% compared to 2019, and by 2023, that number is expected to reach 190%.
One company driving this shift is ePropulsion, founded in 2012 in the lab of Li Zexiang at the Hong Kong University of Science and Technology (HKUST). Initially developing electric outboard motors, ePropulsion has since established its headquarters in Songshan Lake, Dongguan, and built its own factory.
From the beginning, ePropulsion aimed at the overseas market, with Europe as its entry point. Its core products include electric outboard motors, inboard motors, and electric pod propulsion systems. Covering a range of power outputs, ePropulsion’s products are said to be more efficient, cleaner, quieter, and smarter than traditional fuel-based engines.
Today, over 50% of ePropulsion’s revenue comes from Europe, and its electric outboard motors are among the top two globally in terms of shipments. By mid-2024, the company had already shipped nearly 10,000 electric outboard motors.
A differentiated product strategy
While recreational boating in China is often seen as a luxury, it’s a mainstream activity in Europe and North America, similar to camping or fishing. Since the second World War, recreational boating has taken off in Europe, where an estimated 48 million enthusiasts regularly enjoy boating and water sports.
Outboard motors are critical to a boat’s operation, traditionally powered by gasoline or diesel to offer power and endurance for long journeys. Companies like Honda, Yamaha, and Mercury have long dominated this space. But with the rise of electric outboard motors, new players such as ePropulsion have entered the European market, introducing a wide variety of models to match consumer demand.
Europe’s small size, flat terrain, and dense network of lakes and rivers create a unique market. Local consumers prioritize performance and user experience, from the variety of product offerings and noise reduction to custom features and availability of maintenance services.
To meet these needs, ePropulsion offers several series of electric outboard motors, including the eLite, Spirit, Navy, and X series, as well as the Pod series of electric pod propulsion systems. These products are designed for small- and medium-sized boats, with power ranging from 500 watts to 40 kilowatts, offering solutions for various uses.
For example, the X series, with power outputs of 12–40 kilowatts, provides the strength and durability needed for frequent trips in short-distance transport, where small boats ferry essentials like food and fuel between ships and the shore. Meanwhile, the lighter eLite, Spirit, and Navy series are ideal for leisure use, prioritizing portability and easy installation.
“Developing low- and mid-power electric outboard motors allowed us to build a customer base quickly, but the product must meet diverse consumer needs to succeed,” said Tao in an interview with 36Kr.
ePropulsion’s motors are favored for their zero emissions, low noise, and smart connectivity features, allowing users to remotely monitor their boat’s status and battery levels, set geofencing to prevent theft, and receive automatic diagnostics if motor malfunctions occur.
In Europe, where family boating trips are common and motors are often detached and carried by hand, ePropulsion added a floating, waterproof battery to the 1-kilowatt Spirit series to prevent accidents like losing the battery in the water. These motors are designed to be compact, weighing 65% less than their fuel-powered equivalents and costing just 30% as much.
For larger vessels, such as yachts, ferries, cargo ships, and fishing boats, ePropulsion developed electric inboard motors ranging from 10–250 kW, offering pure electric or hybrid propulsion solutions tailored to customer needs.
As electrification demand grows, Tao believes ePropulsion’s diverse product lineup and technical roadmap have been key to its early success and market capture.
Sponsorships boost brand awareness
Most of ePropulsion’s orders come from offline channels, with distributors and agents handling product sales. “Electric outboard motors are high-ticket items. The cheaper models cost several thousand EUR, and a full system can go up to tens of thousands [of EUR]. Consumers want to see the product in person before buying,” Tao told 36Kr. This makes stocking ready-to-sell products in offline channels critical.
In addition, European customers are highly selective, with specific demands regarding motor design, color schemes, and after-sales service. “In Europe, customers are less price-sensitive but care more about product details and after-sales service,” Tao said.
To meet these expectations, ePropulsion has partnered with distributors to create customer service teams that respond to inquiries within 24 hours and handle repairs in 2–3 days, with a maximum wait time of 7 days. The company has also invested in local offices in France and the UK to expand market reach and support key clients.
As a young Chinese company establishing itself in Europe’s brand-conscious market, ePropulsion has allocated significant resources to offline marketing, sponsoring numerous boating events, including SailGP and the America’s Cup, where it provides electric outboard motors and batteries for support boats and buoys. These events generate online traffic and enhance brand recognition.
By mid-2024, ePropulsion had shipped nearly 10,000 units—50% faster than the same period last year—driven largely by the growth of its eLite series.
As industries increasingly move toward zero-emission solutions, the boating industry is transitioning to more powerful electric models, while battery technology continues to mature and costs fall. Europe remains one of the most attractive markets for new energy companies, especially as the push for carbon neutrality accelerates.
Looking ahead, Tao says that ePropulsion will continue to focus on the consumer market while expanding electric power solutions for medium and large vessels. The company also plans to deepen partnerships with boating events and enterprise clients.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Huang Nan for 36Kr.