EP Manufacturing Bhd (EPMB) has won its first major deal to supply electric bikes (e-Bikes) to Indonesia and Vietnam. EPMB’s wholly-owned subsidiary, EP Blueshark Sdn Bhd, had signed a Master Agreement 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. This is significant for the EP Manufacturing group which had also announced its intention to venture into the 4-wheeled electric vehicle business. The deal will see EPMB start delivery of the initial order of 23,000 units from the first quarter of 2023.
This deal will be effective for 5 years from the date of the Master Agreement and may be extended upon mutual agreement. Over the 5-year period, EP Blueshark is expected to supply at least 2 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 tied-up with China-based Sharkgulf Technologies Group Ltd to assemble, manufacture and distribute the latter’s Blueshark 2-wheeled EV, for Malaysia and other Southeast Asian markets. In October 2022, EP Blueshark received the approval from the Ministry of International Trade and Industry to assemble and manufacture e-Bikes at its upcoming manufacturing facility in Glenmarie, Shah Alam.
“We begin the year 2023 with 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,” said EPMB acting Chief Executive Officer Ms. Lim Sim Yee. “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”.
Averte, headquartered in Singapore, is involved in delivering innovative and impactful green products and services in Asia. In July 2022, Averte signed a Memorandum of Understanding with Viettel Post Joint Stock Corporation for Viettel Post to purchase 20,000 e-Bikes. Viettel Post is the subsidiary of Vietnam Telecom, the largest telecommunications firm in Vietnam. It will also set up 1,800 outlets across Vietnam and work with Averte to sell e-Bikes to corporate and/or individual customers.
In Indonesia, Averte had signed a Preliminary Agreement in July 2022 with PT Sarinah, a state-owned enterprise. PT Sarinah had been appointed to promote the popularisation of e-Bikes in Indonesia. Additionally, Averte also signed a Preliminary Agreement with PT Sarinah’s procurement partner, PT Marco Indokarya, for the procurement of 2 million units of e-Bike for the next 5 years.
Meanwhile, Blueshark is primarily involved in the manufacturing of e-Bikes, supply chain, system technology and ecosystem, and carbon trading in ASEAN.
Besides this e-Bike venture, EPMB is also building its market presence as a regional 4-wheeled EV player. In December 2022, EPMB 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. This 5-year deal allows EPMB the option to use its own brand name for the EV.