Ni Hsin EV Tech Sdn. Bhd. (NH EV TECH), a wholly-owned subsidiary of Malaysia-listed Ni Hsin Group Berhad (Ni Hsin), has partnered with VMOTO LIMITED (VMOTO), an Australia-listed listed electric motorcycles company, to assemble and distribute VMOTO electric vehicle (EV) motorcycles models in Malaysia.

Ni Hsin said in a statement on Monday that both parties have signed a memorandum of understanding (MOU), to assemble and distribute VMOTO branded F01, CPX Pro and TC Max.

Under the MOU, VMOTO and NH EV TECH agree to exercise their best efforts to forge a strategic alliance which will include executing a distribution agreement and entering into a joint venture structure.

This is subject to reaching certain sales milestones, to assemble the VMT EVs in Malaysia, and to promote and win market share through business-to-consumer (B2C) sales, business-to-business (B2B) and business to government (B2G) marketing channels in Malaysia.

According to Ni Hsin, the rationale of the MOU is that this strategic collaboration enables both parties to expand their share of the two-wheeler EV market.

It said that VMOTO has the right fit of products for the B2B and B2G market segments in this region which are significant components of the firm’s business model.

“We are delighted to work with VMOTO as they have the right fit of products for the B2B and B2G market segments in this region,” said Khoo Chee Kong, Managing Director of NH EV TECH.

According to him, this strategic collaboration enables both parties to expand their share of the two-wheeler EV market.

“The products are just what the market needs especially in the B2B and B2G segments,

“The high-performance electric motorcycles manufactured by VMOTO is well suited for the security enforcement functions of organizations be it business or governmental,” he said.

He also said the firm’s business model covers B2B and B2G segments and its target customers include the police force, armed forces, road and transport department, customs department, ports, security companies and the like.

VMOTO is a global electric vehicle company and holds a manufacturing license in China to produce electric motorcycles and mopeds at its wholly owned state of the art, 30,000 sq. m manufacturing and warehouse facility in Nanjing, China.

The company manufactures and distributes high performance and competitive electric vehicle products to international B2B and B2C markets under three brands globally, Vmoto, Super Soco and Ducati.

Vmoto is VMOTO’s proprietary brand, targeting international B2C premium markets and B2B Fleet markets, while Super Soco is a brand targeting international B2C markets.

Ducati is CUX Ducati special edition, a premium vehicle manufactured by VMOTO and distributed to all B2C markets under a worldwide licensing agreement.

VMOTO’s global market coverage includes Europe, Asia Pacific, North America, South America, Australia, New Zealand and South Africa.

Its global B2C distribution network comprises 62 international distributors and over 1,500 dealers in more than 65 countries.

“We are delighted to have signed an MOU with NH EV TECH, which represents the first stage of our cooperation,

“We identified NH EV TECH as an ideal partner for VMOTO within the Malaysian market, due to their experience and dedications in Malaysia EV sector,” said VMOTO’s Managing Director Charles Chen.

According to him, the firm has been in discussions with NH EV TECH for quite some time and are confident this MOU represents the first step in establishing a long-term successful business relationship.

“Malaysia is a market we have been researching and we believe our expansion into this market will be a great success, with a number of milestones to be achieved in the coming months to secure sales growth and market share over the coming years, he added.

According to the statement, Malaysia is the 12th largest internal combustion engine (ICE) two-wheeler market in the world, having sold approximately 4 million units between 2014 and 2022, and two-wheeler EVs only account for 1.7 percent of the registered motorcycles in Malaysia, which represents huge opportunity for the EV motorcycle.

It noted that the Malaysian government policies point to increasingly supporting the adoption of two-wheeler EVs and the Malaysian two-wheeler EV market is predicted to grow at 15.4 percent compound annual growth rate (CAGR) for 2021-2027 and the growth is primarily driven by the government initiatives.

It said that current Malaysian government policies and targets support the transition of the ICE two-wheeler to two-wheeler EVs, including tax incentives, installation of charging infrastructure and net-zero greenhouse gas in 2050, increasing Malaysia MYR 100 billion ($32 billion) gross domestic product value in the green technology sector and generating 230,000 green job opportunities.

It is anticipated that Malaysian government will introduce and implement more initiatives to speed up the transition from traditional ICE two-wheeler vehicles to two-wheeler EV.

With VMOTO’s products and experience in EV industry together with NH EV TECH’s local market knowledge and dedications, it said both parties can create synergy and have significant benefits together to gain market share in the growing two-wheeler EV market in Malaysia.

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