As the world moves towards electric vehicles to be more sustainable, global scooter manufacturer Vmoto Limited (ASX: VMT) is profiting off international demand for its electric vehicles. In Q3 2022, the Company sold 11,809 units from its B2B and B2C product range, with nearly 90% being sold to international markets.
The total international units sold in 3Q22 were 10,422, which represents an increase of 5% from the prior corresponding period of 3Q21 and up 70% on 3Q20. Whilst total units sold are up 68% on 3Q 2020.
Aussies are not that big on the EV market as of yet, which is why Vmoto is focusing its efforts on attracting international consumers. In keeping with that, the Company is making progress in the Indian market, where from January 1, 2022 to September 30, 2022, the Company sold 5,000 sets of Complete Knock Down (“CKD”) parts that are then assembled in India by its local customer and sold in that market.
Despite the disruptions caused by both the Covid-19 pandemic and the Ukraine-Russia war, Vmoto’s manufacturing facility in Nanjing, China, remains fully operational, with no material impacts being felt.
In 3Q22, the Company signed and renewed distribution agreements with international distributors in Germany, Austria, India, the United States, and the United Arab Emirates covering the warehousing, distribution and marketing of its B2C range of electric two-wheel vehicles.
While it’s doing well globally, its fortunes locally might be looking up, too. Last week, the Australian federal budget included $39.8 million over the next five years to establish a National Electric Vehicle Charging Network. Additionally, it introduced $4,700 tax breaks for Aussies to embrace electric vehicles. Rest assured, citizens are being pushed in the direction of buying electric scooters, and Vmoto might be positioned for success in the coming years.
Vmoto is trying to promote its offerings within Australia through events. The Company successfully exhibited in the World Ducati Week and held its 2022 ProDay event on 22-26 July 2022.
The Company currently boasts continued positive operational cash flows for 3Q22 and cash of $26 million as of the end of this quarter. Moreover, it has firm international orders amounting to 8,887 units, giving it a solid sales runway for 4Q 2022. With the conducive local environment, the Company can focus on promoting its vehicles in the country.
Vmoto has a positive outlook for FY23 as world governments shift focus to decarbonising the transport industry. And at the forefront of the shift is the electrification of motor vehicles and two-wheel vehicles alike.
Will the new tax breaks encourage Aussies to adopt EVs, thus increasing Vmoto’s local profitability?
Alinda is a Business Reporter for The Sentiment
Latest posts by Alinda Gupta (see all)
- Ovanti’s iSentric signs contracts worth $14.4m with Malaysian commercial bank - June 27, 2024
- Baby Bunting fights back from retail downturn with 5-year strategy, includes Gen-Z focus and self-funded growth - June 27, 2024
- CLEO meets with US FDA to develop strategy for ovarian cancer test launch - June 26, 2024
Leave a Comment
You must be logged in to post a comment.