Electric two-wheel vehicle manufacturer, Vmoto (ASX:VMT) has announced record international sales for the March quarter.
Sales were up 57 percent on the prior December quarter and 80 percent on the prior corresponding March quarter 2018.
The increase is attributed to “a continuing upward sales trend in Europe”.
The company sold a total of 3,821 units – 3,122 of these units were sold in Europe.
Sales in Europe were up 85 percent on the prior quarter and a staggering 275 percent on the March quarter the prior year.
Underpinning its international sales strategy is its growing distribution network.
During the quarter, Vmoto appointed a number of new distributors throughout Europe in Croatia, Estonia, Latvia, Lithuania, France, Hungary, Malta, Serbia, Kosovo, Montenegro, Bosnia, Macedonia and Albania.
What is driving the higher demand in Europe?
New European government policy and regulation supporting electric vehicle transport, booming online shopping and food delivery markets in Europe and maturity in electric vehicle technology helped driving up demand for low-operational cost vehicles.
Simultaneously, a global trend towards electric vehicles (EV) and government lead pollution reduction initiatives are making low-cost, low-emissions vehicles like Vmoto’s increasingly attractive.
In 2018, Europe’s scooter and motorbike sales rose close to ten percent.
While electric bikes accounted for a modest 0.75 percent of two wheelers currently sold in Europe, 2018 EV bike sales rose by an astonishing 81.5 percent.
Optimistic that sales trend will continue
Vmoto’s management “remains confident that it will continue to increase international sales and further consolidate its position as a leading electric two-wheel vehicle manufacturer and provider to the international markets.”
To continue to support the sales growth in Europe, Vmoto is “actively pursuing sales opportunities in the B2B sector, including the sharing and delivery markets.”
It also says that it is “seeking closer collaboration with world-renowned brands in the vehicle and mobility industry.”
Vmoto has a positive outlook, supported by a growing order book – firm orders and deposits have been received for 2,292 units.
It also expects to receive further forward orders for its B2B E-Max electric two-wheel vehicle and the B2C Super Soco two-wheel electric vehicle from its international distribution network this June quarter.
To continue to drive sales in Europe, Vmoto has established a wholly-owned European subsidiary and an Italian company with its Italian partner to accelerate sales into European markets.
It is now also “able to provide direct support to its European distributors and provide more confidence to potential customers with a local presence and after sales service.”
The company is also focused on bolstering sales outside of Europe and says it is “in discussions with a number of potential B2C and B2B distributors and customers in Barbados, Brazil, Mongolia, Nepal, Russia and Slovakia.”
Vmoto closed the quarter with a cash balance of $4.9 million – an increase on the prior quarter, partly driven by increase cash receipts from product sales.