Electric scooter manufacturer Vmoto (ASX: VMT) has announced record international sales for the year to date with COVID-19 expected to have a “longer term positive impact” on its business.
The electric vehicle (EV) supplier today reported 8,453 units were sold between January to May, with 7,770 of these units sold into international markets. This is 42% higher than the previous corresponding period in 2019 and represents a 107% increase on the 2018 period’s sales.
Vmoto previously told the market its manufacturing operations have been materially unaffected by the COVID-19 pandemic and that international distributors have committed to business planning for the 2020 fiscal year and provided deposits for sales orders.
Now that COVID-19 lockdowns have begun to ease in the company’s key international markets, logistics and delivery of products to distributors and customers have returned to “normal levels”, Vmoto reported.
Government initiatives for “green mobility”
In addition, the recent implementation by several European governments of initiatives supporting EVs have been beneficial to the company. These initiatives include subsidies to consumers buying electric two-wheel vehicles for personal transportation to support “green mobility” in the post-lockdown phase, when people are returning to work but have limited access to public transport.
“The impacts from COVID-19 on personal and public transportation and government initiatives are favourable to Vmoto and are expected to have longer term positive impacts to our business as Vmoto’s B2C and ride-sharing products enable consumers to travel with flexibility, while adhering to social-distancing rules,” the company stated.
“The company also expects a boost in demand for its food and parcel delivery electric scooter products as communities embrace food and parcel home delivery services,” it added.
International distribution expanded
Vmoto has recently expanded its international distribution network, inking exclusive deals in Japan, Costa Rica, Panama and Thailand for the warehousing, distribution and marketing of its B2C range of two-wheel EV products.
The company said it has also supplied samples and is in talks with several potential new customers across the globe.
Netherlands-based company Go Sharing has now received all 2,000 Vmoto ridesharing units it ordered at the start of the year and has ordered an additional 1,200 units. This second order is expected to be delivered from July to September.
Last month, Vmoto delivered 60 units to Czech Republic’s re.volt for use in its green energy-powered ridesharing operations.
Vmoto said it is also in talks with potential sharing customers in Brazil, Bulgaria, Colombia, France, Greece, India, Mexico, Portugal, Slovakia, Spain, Switzerland and Turkey.
By midday trade, Vmoto shares were up 14.89% on the news to $0.27.