Treeletrik Enters Partnership To Supply 200,000 Electric Motorbikes To Indonesia
Homegrown electric vehicle maker, Tree Technologies Sdn Bhd (also known as Treeletrik), has signed a partnership deal to supply 200,000 electric motorbikes to Indonesia. The company will supply its Treeletrik electric motorbikes via distributors, PT Pasifik Sakti Enjiniring and Nahdatul Ulama Board (PBNU).
This partnership will expand Treeletrik’s regional presence and reinforce its position as a key player in promoting electric mobility, supporting ASEAN’s energy transition agenda. Tree Technologies is a subsidiary of Ideanomics (NASDAQ: IDEX), which is headquartered in USA and has operations China, Ukraine, Malaysia and USA. Ideanomics acquired 51% ownership of Treeletrik in 2019. The company had since begun organising itself for growth in the ASEAN region to tap the region’s heavy reliance on two- and three-wheeled transportation.
The move positions Malaysia as a key EV manufacturer and first regional supplier to export units in ASEAN, in line with the region’s evolving energy landscape. The region’s ultimate goal of decreasing the level of final energy consumption in the road transport sector by 2040 paves the way for EV makers like Treeletrik to continue building a progressive EV ecosystem.
“Treeletrik is a pioneer in bringing true electric motorbikes from Malaysia to the ASEAN region and beyond, spearheading a new way of mobility. We are thrilled to further our efforts on the regional stage through this partnership with PT Pasifik Sakti Enjiniring and PBNU in Indonesia to provide a transportation option that is clean, safe, and affordable, with our advanced EV technology,” commented Treeletrik CEO, Datuk Viswananthan Menon, on the Cooperation Agreement signing with PT Pasifik Sakti Enjiniring.
“Our 100% electric motorbikes offer customers long-term cost savings and more importantly contribute towards an overall positive impact to the environment,” he added.
The agreement will span three years and will see Treeletrik supply electric motorbikes to be jointly marketed by PT Pasifik Sakti Enjiniring and PBNU for the Indonesian market. PT Pasifik Sakti Enjiniring, which operates the electric motorbikes brand, MOLINUS (Motor Listrik Nusantara), will now add Treeletrik’s 100% electric motorbikes to its portfolio. A joint venture is also in the pipeline between Treeletrik and PT Pasifik Sakti Enjiniring to establish an assembly plant in Indonesia in anticipation of growing demand for the electric motorcycles. The move will serve as a positive boost to Indonesia’s economy through talent development, job opportunities and technology transfer.
The new electric motorbike range, certified in Europe and Malaysia with UNECE WP.29, will feature Treeletrik’s signature quick swap lithium battery technology. With an average speed of 65 – 90 km/h, the e-motorbikes have a travel range of between 85 and 120 km (averaging 70,000 km over 36 months) and costs about RM0.01 to RM0.02 to run per km, based on the Tenaga Nasional electricity rate at RM0.571 / KwH, charging at its highest tariff.
Treeletrik’s approach to mobility eliminates the need for fossil fuels and oil changes, resulting in zero carbon dioxide emissions. Additionally, Treeletrik e-motorbikes offer users long-term cost saving benefits, saving users over 50% in running and maintenance cost.
Aligned with the Indonesian government’s program concerning the Acceleration of the Battery-Based Electric Motor Vehicle Program, the Indonesian parties are optimistic about demand and have set sales targets at 10,000 units for 2021 and targeting to complete the 200,000 units by the end of 2023. The full agreement will be disclosed via an 8-K filing.
Positioned For Growth
Treelektrik’s newest regional distribution partnership will tap into Indonesia’s large population of motorbike users, a positive growth indicator for the brand. Treeletrik’s portfolio of electric motorbikes and electric commercial vehicles seek to redefine the EV industry and future of mobility in Malaysia and ASEAN.
In preparation to fulfil its growing order books, the company is investing in its assembly, production, and marketing facilities, initially in Selangor, and later at a new facility in Gebeng, Pahang. It also plans to establish an assembly plant in Indonesia jointly with the distribution partner, to streamline supply chain efficiencies and improve margins through local assembly in markets with sufficient demand.
Fulfilling Demand For EV
Determined to help raise the bar for electric mobility in ASEAN countries, Treeletrik continues to receive positive demand for its 100% electric motorbikes. The EV player had exported about 50 units of electric motorbikes to Thailand and Indonesia in 2020, with an additional 15,000 units due to be exported this year. Treeletrik is also eyeing other potential markets such as The Philippines and Cambodia.
“The sizeable orders secured to date and ongoing discussions with other countries expressing keen interest on Treeletrik’s e-bike range, will result in significant expansion in both Malaysia and international operations of Treeletrik.” added Menon.
