Company: FLYE
Filing Date: 2025-07-15
Form Type: 10-K
Source: 0001213900-25-064293
Chunk: 7

Company: Fly-E Group, Inc.
Filing Date: 2025-07-15
Form: 10-K
Item: Item 1
Chunk 7
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 With the advancement of technology and the increasing demand for environmentally
friendly transportation options, E-bikes, E-motorcycles and E-scooters have become popular choices for commuting, leisure and sports.
As the demand for sustainable transportation options continues to grow, the EV industry is poised for further growth and development.

Some of the major trends driving
the growth of the EV industry include the increasing demand for sustainable transportation options, advancements in battery and motor
technology, and the growing popularity of E-bike sharing services. Government incentives and regulations, such as tax credits and subsidies
for the purchase of EVs, are also driving the growth of the industry.

The Asia-Pacific region is
the largest market for the electric two-wheelers due to the growing awareness about the benefits of electric vehicles, rising personal
disposable income, growing demand for affordable electric vehicles for short-distance commuting and increasing adoption of smart technologies.
We believe that North America is expected to experience significant growth in the future due to growing government initiatives to raise
awareness of such products among individuals.

City bikes and city E-bikes
are popular in big cities in the United States, such as New York City, Miami and Dallas. There is also a growing popularity
of E-scooters as an increasing number of EV merchants are launching their businesses in these cities.

The growth of the EV industry
is further accelerated by the rise in small package deliveries in big cities. New York City is a major commercial hub and the largest
metropolitan area in the United States. As a result, the volume of small package deliveries in New York City is remarkably high,
and it has continued to grow over the years. With the rise of E-commerce and online shopping, more and more people in New York
City are relying on package deliveries for their everyday needs, leading to a significant increase in small package delivery volume. The
COVID-19 pandemic has further accelerated this trend as more people have turned to online shopping.

The high volume of package
deliveries in New York City has led to concerns about traffic congestion and delivery vehicle emissions, which the city is working
to address through initiatives such as congestion pricing and EV incentives. For short-distance deliveries within urban areas, E-bike
delivery can be a more efficient and environmentally friendly option compared to truck delivery. E-bikes can navigate through congested
city streets, often taking shorter routes that trucks cannot access, and deliver packages quickly without contributing to traffic congestion
or air pollution. Additionally, E-b