E-mobility provider Vmoto (ASX: VMT) recorded the sale of 4,575 electric motorcycles and mopeds in the three months to end December, representing a 68.3% increase on the previous period underpinned by new sales strategies including the use of trade insurance and helping customers secure third-party trade finance.
The company booked firm orders of 7,462 units (up 91% on the previous quarter) due to increased demand from long-term business-to-business delivery clients including Über, as well as initial oders being delivered to customers in Thailand.
A cut of 25 basis points by the US government in October lowered borrowing costs, creating a more favourable funding environment in Europe and South America for EV businesses.
This supports Vmoto’s expectations of a further improvement in sales, with figures for the current quarter already surpassing sales in the December period.
New Sales Strategies Implemented
Vmoto sold a total 12,584 motorcycles in financial year 2025, representing a 26% reduction on the previous year.
The fall was mainly due to sales in the first three quarters being impacted by economic uncertainties stemming from high interest rates and negative policies of certain governments causing an industry-wide downturn.
The company has implemented new sales strategies to counter these effects, and expects continued recovery and improvement over the coming quarters.
Initiatives by international governments to promote the use of electric transport represent significant tailwinds for Vmoto.
These initiatives include purchase incentives and subsidies, the development of new charging infrastructure, fleet electrification, and the ban of internal combustion EVs.
Battery-Swap and Fast-Charging Stations
Vmoto has commenced deploying its battery-swap and fast-charging station products in key markets including Brazil, Spain, the United Arab Emirates, and the UK, believing the geographic spread will help enhance the value of its integrated e-mobility solutions and solve some of the “distance anxiety” of EV users by significantly reducing the downtime to recharge for delivery fleets.
The company remains positive about the longer-term outlook for the electric motorcycle and moped markets in Europe, the Middle East, and South America.
Vmoto secured a joint venture agreement with Plugin Technologies in October to distribute electric vehicles to Pakistan’s consumer market via new entity Vmoto Pakistan, which will import, assemble, and distribute products and parts through a local dealer network.
The company also signed a deal with Thai company AJ Advance Technology and China-based Guangdong DHA to explore the feasibility of a joint venture to increase sales.
The parties intend to jointly promote the supply of 100,000 Vmoto electric motorcyles and establish local assembly and after-sales services for AJ Advance Technology’s fast-charging and battery-swapping project.
Lit Energy Subscription
During the period, Vmoto entered into a subscription agreement to invest in Lit Energy Network Australia for a total consideration of $200,000 plus 10% equity in Lit.
Lit Energy focuses on electric mobility solutions including battery-swapping and fast-charging stations and is planning to list on the Australian Securities Exchange through a transaction with Perth-based Apple reseller Story-i.
Vietnam currently has 77 million registered motorcycles which account for around 90% of road traffic.
Vmoto had $32.4 million cash at hand at the end of December, despite generating negative operational cash flow during the period, primarily due to increased working capital to fulfil orders from B2B customers in the UK and Thailand.
It also applied funds toward working capital for a new assembly facility and dedicated store in Thailand and the construction of the company’s $14 million manufacturing facility in China.
