EP Manufacturing Berhad which has been aggressive in positioning itself in the electric vehicle space has secured its first major deal to supply 23,000 units of EV bikes to the Indonesian and Vietnamese markets.
The group will be delivering the units by the first quarter of 2023, this was done after its wholly-owned subsidiary EP Blueshark Sdn Bhd, signed a Master Agreement with Singapore-based Averte Global Pte Ltd and Hong Kong-based Blueshark Group Ltd, in which Averte and Blueshark have jointly agreed to be the Joint-Venture partners and Purchasers.
The purchase deal will be effective for 5 years from the date of this Master Agreement and may be extended with mutual agreement. Over the 5-year period, EP Blueshark is expected to supply at least 2 million e-Bikes to the Purchasers.
The price for each e-Bike is expected to be within the range of US$1,850 – US$3,900.
EP Blueshark received approval from the Ministry of International Trade and Industry to assemble and manufacture e-Bikes at its upcoming manufacturing facility in Glenmarie, Shah Alam.
EPMB acting Chief Executive Officer Ms. Lim Sim Yee said “We see tremendous growth opportunities for two-wheeler EVs in Indonesia and Vietnam. The Indonesian e-Bike market, for example, is forecast to grow at a compound annual growth rate of 20.96% to reach US$816.2 million by 2025, according to an independent study by Research and Markets. EPMB hopes to be at the forefront to capitalise on this demand.
Averte is involved in the business of delivering innovative and impactful green products and services in Asia. In July 2022, Averte signed a Memorandum of Understanding with Viettel Post Joint Stock Corporation, whereby Viettel Post will purchase 20,000 e-Bikes and it will also open its 1,800 outlets across the country to cooperate with Averte to sell e-Bikes to corporate and/or individual customers. Viettel Post is the subsidiary of Vietnam Telecom, the largest telecommunications firm in Vietnam.
It had also signed a Preliminary Agreement in July 2022 with PT Sarinah, a state-owned enterprise under the Indonesian government. PT Sarinah has been appointed to promote the popularisation of e-Bikes in Indonesia. In addition, Averte also inked a Preliminary Agreement with PT Sarinah’s procurement partner, PT Marco Indokarya, for the procurement of 2 million units of e-Bike for the next 5 years.