Electric vehicle supplier Vmoto (ASX: VMT) has announced the upcoming launch of a special edition two-wheel electric scooter courtesy of an agreement with world-renowned Italian motorcycle manufacturer Ducati.
Under the licence, Ducati and Vmoto will manufacture two-wheel electric vehicles called the “CUX special Ducati edition” with Vmoto set to supply and release the CUX models bearing the Ducati brand and label.
The new model will be sold as an official product under the licence of Ducati and Vmoto has said that the CUX model will be marketed as a “high-end luxury product at a premium price.”
Ducati is best known for its high-performance motorcycles characterised by large-capacity engines that run on petrol.
However, the deal with Vmoto means Ducati will expand its motorcycle brand to now include electric vehicles – to be sold globally.
Headquartered in Bologna Italy, Ducati takes up a premium slot of a range of brands owned by the Volkswagen Group – the multinational automotive manufacturing group which also owns renowned motor vehicle brands such as Audi, Bentley, Bugatti, Porsche, Škoda, Lamborghini and Volkswagen.
Meanwhile, Vmoto specialises in producing high quality “green” electric-powered two-wheel vehicles and manufactures a range of electric scooters aimed at developed markets from its manufacturing facilities in Nanjing, China.
Vmoto has said its business model is to “combine low-cost Chinese manufacturing capabilities with European design” while operating three primary brands:
- Vmoto aimed at the so-called value market in Asia,
- E-Max targeting the Western business-to-business markets with a premium-end product,
- Super Soco which targets the Western business-to-consumer market.
Just yesterday, Vmoto announced that international sales for the past quarter rose 80% on the previous year, and were up 57% from Q4 2018.
Vmoto sold 3,821 scooters worldwide during the March 2019 period, with European customers and distributors accounting for the vast majority of sales at 3,122 units.
Dealing with Ducati
Aiming to achieve global adoption and sales, Vmoto, with Ducati’s support, will promote the CUX special edition to existing worldwide distribution network.
Vmoto said that “the agreement with Ducati is expected to further drive Vmoto’s product awareness across international markets and provides strong validation as a leading producer of high-quality two-wheel electric vehicles by one of the world’s best-known luxury motorcycle brands.”
In terms of timing, Vmoto said it intends to make the new CUX luxury scooter available until 31 December 2020 with expectations that it will “strongly contribute to sales growth for the next two years.”
“This is an exciting agreement for Vmoto and we are thrilled that Ducati has agreed to associate its premium reputation and brand with our electric vehicles. The deal will allow Ducati’s fans to have the opportunity to access premium and high-quality 2-wheel electric vehicles supplied by Vmoto and create more confidence to Vmoto’s expanding distributors especially in Europe,” said Charles Chen, managing director of Vmoto.
Mr Chen added that the deal is partly intentioned to further grow Vmoto’s product awareness in Europe, one of the world’s largest markets for automotive vehicles and a region with a growing need for greener alternatives to petrol-powered motorcycles.
“I am very happy to have contributed to the realisation of this project,” said Graziano Milone, Director of Vmoto Soco Italy.
He added that “Vmoto has been able to better interpret the needs of the European consumer by promoting quality products and sophisticated design.”
The news helped Vmoto shares to trade up to $0.115 per share by late morning, up 46%.