Vmoto, the Australia-Shanghai-based manufacturer of electric scooters, has signed a cooperation agreement with Thailand-based AJ Advanced Technologies and Gunagdong DHA. As part of the cooperation agreement, Vmoto would support AJ Advanced in its plans to set up a battery swapping and fast-charging electric motorcycle project in Thailand.
For the project, Vmoto would supply the scooters and motorcycles, while AJ Advanced Technologies would develop the battery packs. Essentially, Vmoto would be adapting its scooters around AJ’s new battery packs for the Thailand battery swapping venture.
Vmoto is expected to supply 100,000 scooters and motorcycles to be deployed under the joint venture. The joint venture agreement, to be signed, would have the partners enter into a ten-year understanding.
A notable inclusion in the press release is that the joint venture’s noted ambition to expand beyond Thailand into Southeast Asia, the Middle East, and African markets, with AJ Advanced Technologies remaining the battery supplier. The vehicles would be badged and sold under the AJ brand.
Meanwhile, Guangdong DHA would act as a strategy consultant for the project and would coordinate, liaise, and provide support for relevant commercial, technical, finance, and supply chain matters.
AJ Advance Technology is a public company that is traded on the Thailand stock exchange. It is a holding company with businesses in the wholesale and retail of electrical appliances and electric
vehicles, chemical fertilizers, and digital asset mining. Its EV division operates under the AJ EV brand and has been selling scooters in the Thailand market. Some of these scooters seem to be imported from the Chinese factory AIMA.
Impact
Structurally, the agreement is similar to what Vmoto has with Vammo in Brazil, where the local partner assumes some responsibility and supply chain for the battery packs, while the vehicles would come from Vmoto. Since packs are the most capital-intensive, and the swapping network deployer likes to maintain some level of autonomy on the supply chain side, these types of arrangements are conducive for long-term relationships.
Vmoto’s sales volumes are alarmingly low, something we had touched upon recently.
InsightEV – Global Electric Mobility
It has been constantly working on forming these joint ventures with local partners in smaller, upcoming markets, even as it has no presence in India and very little sales in China. In the recent past, the company has entered into joint ventures in Singapore, Malaysia, South Africa, Indonesia, and the UK.
We cannot speculate on Vmoto’s previously announced joint venture in Thailand with logistics group Skipper Co.
