- Vmoto (VMT) has signed a memorandum of understanding (MOU) with one of India’s largest travel technology companies, The Bird Group
- Under the MOU, the two companies will discuss exclusive distribution agreement for Vmoto’s CUX and CUmini range of two-wheeled electric vehicles
- If executed, the agreement would require Bird Group to order a minimum of 10,000 units in the first year of operation, which would represent around $13.8 million
- The MOU obligations include Bird Group purchasing 20 CU mini sample units in March 2021
- Vmoto is up 15.9 per cent, trading at 47.5 cents
Vmoto (VMT) has signed a memorandum of understanding (MOU) with one of India’s largest travel technology companies, The Bird Group.
Bird Group is one of India’s leading dealerships of global brands BMW and MINI, with over 500 corporate customers and thousands of individual customers.
Under the MOU, the two companies will discuss an exclusive distribution agreement in India for Vmoto’s CUX and CUmini range of two-wheeled electric vehicles.
India is the largest ICE two-wheeler market in the world, purchasing 162.6 million units from 2011 to 2020.
With Indian government policies increasingly supporting the adoption of two-wheel EVs, the company expects the Indian two-wheel EV market size to grow significantly over the next several years and, according to research by arizton.com, is expected to reach US$750 million (around A$966 million) by 2025.
Bird Group’s assessment of the Indian market determined the two EV products would be an ideal offering, and perfectly aligned to serve India’s growing demand for clean and sustainability mobility.
If executed, the exclusive distribution agreement requires Bird Group to order a minimum of 10,000 units in the first year of operation, which would represent a total sales value of around $13.8 million.
“We are delighted to have signed an MOU with Bird Group, which represents the first stage of our cooperation. We identified Bird Group as an ideal partner for Vmoto within the Indian market, due to the size and scale of its reach and operations,” said Vmoto Managing Director, Charles Chen.
“We have been in discussions with Bird Group for quite some time and are confident this MOU represents the first step in establishing a long-term successful business relationship”.
The MOU terms include Bird Group purchasing 20 CU mini sample units in March 2021, which are intended for a trial.
Through the trial, the samples can be submitted into a government-led ride-sharing project in New Delhi, India.
Vmoto is up 15.9 per cent, trading at 47.5 cents at 11:00 am AEDT.