EPMB signed this deal with Averte Global Pte Ltd and Blueshark Group Ltd
EP Manufacturing Berhad (EPMB) has just scored its first major deal to supply electric bikes (e-bikes) for Indonesia and Vietnam in the first quarter of 2023, with an initial order of 23,000 units. This is another major milestone for EPMB along with its earlier announcement of venturing into the four-wheeled electric vehicles (EVs) business.
EPMB, via its wholly-owned subsidiary, EP Blueshark Sdn Bhd, signed this Master Agreement with Singapore-based Averte Global Pte Ltd and Hong Kong-based Blueshark Group Ltd. The agreement resulted in Averte and Blueshark jointly agreeing to be the Joint-Venture partners and Purchasers.
Moreover, this agreement will be effective over 5 years from the date the Master Agreement was signed but may be extended if all parties mutually agree. Throughout this period, EP Blueshark will be expected to supply at least 2 million e-bikes to the Purchasers with each unit expected to cost between USD1,850 – USD3,900.
On top of that, EPMB has tied-up with China-based Sharkgulf Technologies Group Ltd to assemble, manufacture and distribute the latter brand’s Blueshark-branded two-wheeled EVs in Malaysia and other SouthEast Asian markets. This is exciting as we know that Malaysia is lacking in EV adoption and this could speed that up.
Additionally, Blueshark received approval from the Ministry of International Trade and Industry (MITI) to assemble and manufacture e-bikes at its future manufacturing facility in Glenmarie. However with the group targeting to make these deliveries by the end of 1Q23, I wonder if the group has bit off more than it can chew.
EPMB acting CEO Ms. Lim Sim Yee, also said, “We begin the year 2023 with an exciting news for EPMB, as this 5-year deal will create a new source of revenue for the Group with a healthy margin. This will put us on an accelerated growth as we work towards securing more such buyers in the future. While our EV venture only began less than a year ago, we have been seeing a strong response from prospective clients.”
“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.” She concluded.
Furthermore, EPMB is also building its market presence as a regional four-wheeled EV player in addition to the e-bike venture. With Blueshark primarily being involved in e-Bike manufacturing, supply chain and more, I have no doubt the group can easily transfer that knowledge and skill to four-wheel EVs as well.
What do you guys think? Are you excited to see e-bikes being built here? Could we potentially see them being sold here at a cheaper rate sometime soon?
