ASX-listed and Perth-based e-scooter maker Vmoto has gained a foothold in the potentially massive Indian two-wheel electric vehicle market after signing a memorandum of understanding with local travel tech Bird Group to expand its CUX and CUmini -Product line to distribute.
Vmoto announced on Monday that the exclusive distribution agreement would deliver a minimum order of 10,000 e-scooters for a total turnover of around USD 13.8 million in the first year of operation, provided that Bird Group rates CUX and CUmini as satisfactory.
Additionally, the potential for further sales could be enormous as India currently holds the title of the largest ICE two-wheeler market in the world and sold 162.6 million units from 2011 to 2020.
Vmoto CEO Charles Chen said his company has identified Bird Group as the “ideal partner” for the e-scooter maker in the Indian market based on the size and extent of its reach and operations.
Bird Automotive is one of the leading Indian dealers of the global brands BMW and MINI and the exclusive distributor of Segway Personal Transporters. It also has more than 500 corporate clients, thousands of individual clients, and close ties with the Government of India.
“We have had discussions with Bird Group for a long time and are confident that this letter of intent is the first step in building a long-term, successful business relationship,” said Chen.
“India is a market that we have been researching extensively for the past 12 months and we believe our expansion into this market will be a tremendous success, with the potential for exceptional growth in the years to come.”
Vmoto notes that government policies increasingly support the adoption of two-wheel electric vehicles with the potential for significant growth over the next decade.
“The potential of converting India’s current two-wheel ICE market to electrically powered electric vehicles presents a tremendous opportunity for both Vmoto and the Bird Group,” the company said.
“Vmoto’s industry experience and expertise in the two-wheel electric vehicle market combined with Bird’s reputation and local experience means that both groups are able to benefit significantly from the relationship.”
The news of the India deal follows Vmoto’s announcement in January that it would win a $ 6,000 contract valued at $ 13,000 from longtime European client Greenmo Group – the company’s largest ever contract, which its shares hold Shares at that point were up 21%.
As The Driven reported here, Vmoto’s total sales in 2020 were 23,547, up 18 percent from 2019, with the majority being sold to ridesharing or delivery companies in Europe, where there are strong incentives for businesses to drive electric , and a growing corporate zero-emission culture.