ASX-listed and Perth-based e-scooter maker Vmoto has gained a foothold into the potentially massive Indian two-wheel electric vehicle market, after signing a memorandum of understanding with local travel tech outfit Bird Group to distribute its CUX and CUmini range.
Vmoto said on Monday that the Exclusive Distribution Agreement stood to deliver a minimum initial order of 10,000 e-scooters in the first year of operation, for a total sales value of roughly $A13.8 million, subject to Bird Group’s satisfactory evaluation of the CUX and CUmini.
Beyond that, the potential for further sales could be huge, with India currently holding the title of the largest ICE two-wheeler market in the world, having sold 162.6 million units from year 2011 to 2020.
Vmoto managing director, Charles Chen, said his company had identified Bird Group as an “ideal partner” for the e-scooter maker within the Indian market, due to the size and scale of its reach and operations.
Bird Automotive is one of India’s leading dealerships of global brands BMW and MINI, and is also the exclusive distributor of Segway Personal Transporters. It also has more than 500 corporate customers, thousands of individual customers and strong relationships with Indian government.
“We have been in discussions with Bird Group for quite some time and are confident this MOU represents the first step in establishing a long-term successful business relationship,” Chen said.
“India is a market we have been researching heavily over the last 12 months and we believe our expansion into this market will be a tremendous success, with the potential to deliver exceptional growth over the coming years.”
Vmoto notes that Indian government policies are increasingly supporting the adoption of two-wheel EVs, offering potential for significant growth over the coming decade.
“The potential to convert India’s current two-wheel ICE market to electric powered EV’s, represents an enormous opportunity for both Vmoto and the Bird Group,” the company said.
“Vmoto’s industry experience and know-how in the two-wheel EV market combined with Bird’s reputation and local experience, means both groups are poised to benefit significantly from the relationship.”
The news of the India deal follows Vmoto’s January announcement of a $A13 million, 6,000 unit order from longstanding European customer Greenmo Group – the company’s largest order yet, news of which boosted its shares by 21%, at the time.
As The Driven reported here, Vmoto’s total unit sales for the 2020 hit 23,547, up 18 per cent on 2019, with the majority sold to rideshare or delivery companies in Europe, where there are strong incentives for companies to go electric, and a growing corporate culture of going emissions-free.