Vmoto up 20pc following exclusive deal for distribution in India
Special Report: Vmoto has announced an exclusive deal with Indian travel technology company Bird Group for distribution in the region.
Vmoto (ASX:VMT) has signed a Memorandum of Understanding (MOU) with one of India’s largest travel technology companies, Bird Group, for the distribution of its two-wheel electric vehicles (EVs) across the region.
Following a successful technical evaluation, Bird Group will order a minimum 10,000 units in the first year, representing a total sales value of approximately $13.8 million.
The Vmoto share price shot up 20% following the announcement, with Bird’s existing network of 500 corporate customers, thousands of individual customers and a strong relationship with the Indian Government putting it in prime position to distribute Vmoto’s EVs to a wide audience.
India is the largest market for internal combustion engine (ICE) two-wheelers, having sold 162.6 million units from 2011 to 2020.
But changing policies are increasingly supporting the adoption of EVs, and it is anticipated that this will lead to a boom over the next few years, reaching USD $175 million by 2025.
This represents a huge opportunity for Vmoto and the Bird Group to capitalise on the conversion of the existing ICE market to EVs. Vmoto’s Managing Director, Charles Chen said the company was excited to combine its experience in the EV market with Bird’s power in the local region.
“We are delighted to have signed an MOU with Bird Group, which represents the first stage of our cooperation. We identified Bird Group as an ideal partner for Vmoto within the Indian market, due to the size and scale of its reach and operations,” said Chen.
“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. 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.”
The Bird Group agreement is another stepping stone in Vmoto’s plans for long term growth after delivering strong results in 2020 and increased demand from B2B partners around the world.
Last month the company reported a total revenue of $61m for the full year, 2020, a 34% rise on the previous period.
Vmoto delivered total revenue of $61m for the period, despite significant headwinds from the COVID-19 pandemic. The company reported a net profit after tax (NPAT) of $3.7m, a 174% increase on the previous year.
This article was developed in collaboration with Vmoto, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.