KUALA LUMPUR: EP Manufacturing Bhd (EPMB) has won its first major deal to supply 23,000 units of electric bikes (e-Bikes) for the Indonesian and Vietnamese markets, to be delivered from the first quarter (Q1) of 2023.
This marked a significant milestone for the company, on top of its venture into the four-wheeled electric vehicle (EV) business announced earlier.
EPMB, via its wholly-owned subsidiary EP Blueshark Sdn Bhd, signed a master agreement today 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.
EPMB acting chief executive officer Lim Sim Yee said the five-year deal would create a new source of revenue for the company 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 per cent 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 said.
The purchase deal will be effective for five years from the date of the master agreement and may be extended with mutual understanding.
Over the period, EP Blueshark is expected to supply at least two 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.
EPMB has partnered with China-based Sharkgulf Technologies Group Ltd to assemble, manufacture and distribute the latter's Blueshark-branded two-wheeled EV, targeting Malaysian and other Southeast Asian markets.
In October 2022, 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.
Apart from the e-Bike venture, EPMB is also building its market presence as a regional four-wheeled EV player.
In December 2022, the group entered into an exclusive distributor agreement with Hubei Dongfeng Power Auto Trade Co Ltd and Xiamen Tsingyan Hylong Motor Technology Co Ltd to assemble and sell Lingbox EVs in Malaysia and Indonesia.