Vmoto stock up on Vietnam deal
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Shares in Perth-based Vmoto have closed higher after the company announced it has inked a distribution deal for its electric scooters in Vietnam.
Vmoto said it has signed an exclusive distribution agreement with green vehicle supplier Euro Ebike Company.
The initial contract is for a minimum of 1,200 units to be ordered by August 2015.
Vietnam has the fourth-largest motorcycle market in the world, behind China, India and Indonesia.
About 37 million motorcycles are registered in the country, compared to about 2 million cars.
Vmoto is hopeful electric scooters will become more more popular and acceptable to Vietnamese consumers.
The company has recently made similar inroads into China and Indonesia as it looks to capitalise on growing interest in scooters in those markets.
Vmoto meanwhile announced it is developing a new, super-light scooter which it says could be easily stored at home or the workplace.
The Vmoto 1 scooter will weigh about 48 kilograms, can be folded in 30 seconds and is able to be connected to an Apple iPhone.
Vmoto managing director Charles Chen said he was confident the new model would generate significant interest in the Chinese market.
The company’s shares closed the day’s trade 13 per cent higher at 5.2 cents.
Questions & Answers
Q.What is the initial volume of electric scooters Euro Ebike Company is obligated to order?
What is the initial volume of electric scooters Euro Ebike Company is obligated to order?
The initial contract with Euro Ebike Company stipulates a minimum order of 1,200 electric scooter units. These units are to be ordered by August 2015, marking the start of the distribution agreement in Vietnam.
Q.How does the size of Vietnam's motorcycle market compare globally?
How does the size of Vietnam's motorcycle market compare globally?
Vietnam's motorcycle market is the fourth-largest globally, trailing only China, India, and Indonesia. Approximately 37 million motorcycles are registered there, significantly outweighing the roughly 2 million cars in the country.
Q.Which other markets has Vmoto recently entered with similar distribution efforts?
Which other markets has Vmoto recently entered with similar distribution efforts?
Vmoto has recently made similar distribution inroads into both China and Indonesia. This expansion is part of the company's strategy to capitalise on the increasing interest in scooters across these Asian markets.
Q.What are some key features of the new Vmoto 1 scooter being developed?
What are some key features of the new Vmoto 1 scooter being developed?
The new Vmoto 1 scooter will weigh about 48 kilograms and can be folded in just 30 seconds for easy storage. This super-light model also offers connectivity with an Apple iPhone.