New Jersey Bike Shops Report E-Bike Sales Drops of Up to 90% After New Rules

NEW JERSEY – August 23, 2026 – Several New Jersey bicycle retailers are reporting steep declines in electric bike sales following the state’s new licensing and registration requirements, with individual shops describing drops ranging from about 20% to as much as 90%.

Those percentages are not official statewide sales statistics. They come from individual retailers interviewed about conditions following implementation of New Jersey’s new e-bike law. That distinction is important because the reports show serious problems for some shops without proving that e-bike sales across the entire state have fallen by the same amount. Riders can review my complete New Jersey e-bike law guide for the current licensing, registration, and insurance requirements.

I also covered the New Jersey registration and licensing rules taking effect. You can follow the Electric Bike News archive for continuing developments.

Current Status: New Jersey’s Requirements Are in Effect

New Jersey’s current e-bike requirements are law, not a proposal.

The law was signed in January 2026, and riders were given six months to comply. The new requirements became enforceable in July.

The New Jersey Motor Vehicle Commission began accepting appointments for e-bike licensing and registration on June 26.

Under current MVC guidance:

• Riders generally must be at least 15.
• Riders must have a valid driver’s license or qualifying e-bike license.
• E-bikes covered by the law must be registered with the MVC.
• Motorized bicycles require liability insurance.
• Low-speed electric bicycles do not require insurance.
• E-bike riders are required to wear a helmet.

The insurance distinction is particularly important because some summaries of the law have described the requirement too broadly.

New Jersey No Longer Uses the Familiar Three-Class System the Same Way

New Jersey’s current definitions are different from the Class 1, Class 2, and Class 3 structure used in many states.

The MVC defines a low-speed electric bicycle as a pedal-assist bicycle whose motor assists only while the rider is pedaling and stops providing assistance at 20 mph.

The state’s motorized-bicycle category includes certain throttle-equipped or faster pedal-assist bicycles capable of speeds up to 28 mph.

That means a buyer should not assume a bike marketed nationally as “Class 2” or “Class 3” automatically fits the same legal category in New Jersey.

What Bike Shops Are Reporting

Electric Bike Report published a roundup on August 23 based on retailer accounts originally reported by NJ.com.

The individual examples are striking.

Cyclesport owner Mike Grotz reportedly sold more than 50 Class 1 e-bikes last year but only four this year.

Scott Chambers of Zippy’s Bike in Wildwood reported that e-bike sales were down about 90% year to date, with rentals reportedly falling by a similar amount.

Jason Fenton of Halter’s Cycles reported an approximately 20% decline.

At Jesse’s Rides in Shrewsbury, sales were reportedly down 44% during an important seasonal sales period. The business also ended its rental operation, reduced staffing, and cut overhead.

These figures describe specific businesses. They should not be presented as a statewide Department of Revenue, MVC, or industry sales report.

Retailers Say the New Requirements Are Discouraging Buyers

According to the retailer accounts, some potential buyers are walking away after learning about licensing and registration requirements.

Halter’s Cycles told the reporting outlet that customers sometimes reconsider a purchase after employees explain what they need to do to legally operate the bike.

That is particularly important for bicycle shops selling lower-speed commuter and recreational bikes.

Someone who previously thought of a 20 mph pedal-assist e-bike much like a conventional bicycle now has to consider registration, licensing, helmet rules, and other state requirements before riding.

What About Reports That Bike Shops Have Closed?

The same industry report cites Sandy Chapman, co-founder of the New Jersey E-Bike Shop Coalition, as estimating that roughly a dozen bicycle shops have already closed and that other retailers have reported declines in the 30% to 60% range.

I have not found an official statewide dataset confirming that approximately a dozen shops closed specifically because of the e-bike law.

For that reason, I would treat that number as an industry estimate, not an independently verified statewide closure count or proof that the law caused every closure.

There Is Already a Bill That Would Change the Rules

One important correction to some current coverage is that New Jersey lawmakers do have legislation on file that would change how lower-speed e-bikes are treated.

Assembly Bill A1538 is currently introduced in the 2026-2027 legislative session. It has not become law.

The bill would establish separate definitions for Class 1 and Class 2 electric bicycles.

Under the proposed language, operators of those Class 1 and Class 2 bikes would not be required to register the bicycle, provide proof of insurance, or have a driver’s license.

A1538 would also establish battery and electrical-system testing and certification requirements for certain e-bikes, motorized bicycles, batteries, and charging systems.

The important point for riders is that A1538 is only a proposal. New Jersey’s existing licensing and registration requirements remain in force unless and until lawmakers enact a change.

The Retail Reports Could Add Pressure for Legislative Changes

Retailers interviewed about the sales downturn have argued that conventional lower-speed e-bikes should not face the same regulatory burden as faster or more motorcycle-like electric vehicles.

That position overlaps with a key part of A1538, which would again distinguish Class 1 and Class 2 bikes and exempt those categories from registration, insurance, and driver-license requirements.

Whether the retailer reports lead to legislative movement is still uncertain.

There is a major difference between having a bill introduced and having it pass both houses and be signed into law.

New Jersey Was Already Facing Opposition to the Law

The retailer-sales issue follows months of broader disagreement about New Jersey’s e-bike rules.

When the law was considered and signed, supporters pointed to serious crashes, increasingly fast electric vehicles, and concerns about younger or inexperienced riders.

Critics argued that mandatory licensing and registration would create barriers for people using lower-speed e-bikes for transportation.

I covered those concerns previously in my report on opposition to New Jersey’s e-bike law.

The latest retailer reports add another issue to that debate: the possible economic effect on legitimate bicycle shops.

Why the 90% Number Needs Context

The 90% figure makes a strong headline, but it needs to be read correctly.

It does not mean New Jersey e-bike sales statewide have officially fallen 90%.

It means one retailer reported a decline of roughly that size, while other shops reported substantially different numbers, including approximately 20% and 44%.

The broader news story is that multiple shops are describing meaningful declines and are connecting at least part of that decline to uncertainty or resistance surrounding the new requirements.

More statewide sales data would be needed before drawing conclusions about the size of the effect across New Jersey as a whole.

📰 How This Story Was Verified

This report is based on available official documents, agency statements, meeting records, court filings, or other primary sources, with reliable reporting used for additional context. I clearly distinguish proposals from rules that have been finally approved or taken effect.

For the current legal requirements, I relied on New Jersey Motor Vehicle Commission guidance and its June implementation announcement. I also reviewed the current text of Assembly Bill A1538 through the New Jersey Legislature. The sales percentages come from retailer interviews summarized by Electric Bike Report and are identified as individual business reports rather than official statewide statistics.

My Take

The 90% number is eye-catching, but I do not think it should be treated as the most important fact in this story.

The bigger issue is that several retailers are reporting meaningful declines and saying the state’s new requirements are affecting purchase decisions.

New Jersey also now has two stories developing at the same time.

One is the real-world implementation of a law requiring licensing and registration for ordinary e-bike riders.

The other is A1538, an introduced bill that would move lower-speed Class 1 and Class 2 bicycles back toward bicycle-style regulation while adding stronger battery and electrical-safety requirements.

That creates a much more useful policy question than simply asking whether e-bike sales are “down 90%.”

Can New Jersey address high-speed vehicles and legitimate safety concerns without creating unnecessary barriers for ordinary 20 mph e-bikes?

The retailer reports do not answer that question by themselves, but they give lawmakers another reason to examine how the current system is working in practice.

Sources

• New Jersey Motor Vehicle Commission – Current e-bike requirements
• New Jersey Motor Vehicle Commission – June 23 licensing and registration implementation announcement
• New Jersey Legislature – Assembly Bill A1538
• Electric Bike Report – August 23 retailer-sales roundup
• New Jersey Monitor – report on the law taking effect