Electric scooter manufacturer Vmoto Ltd [ASX:VMT] has received a strong boost in its share price today thanks to the announcement it has just inked a deal worth $13 million.
VMT specialises in the production of electric powered two-wheel vehicles and manufactures a range of electric scooters from its manufacturing facility in Nanjing, China.
VMT’s share price has been under considerable downwards pressure in recent months as the re-emergence of COVID-19 in Europe has seen a reduction in the use of transportation.
At time of writing the VMT share price is up 7 cents or 17.07% to trade at 48 cents per share.
Repeat order spells growth opportunity
VMT announced today it has inked and order for 5,904 units with GreenMo Group, a European electric vehicle rental company, worth $13 million.
The company says the repeat order by GreenMo highlights the growth opportunity represented by its international business-to-business sales strategy.
Additional orders are expected through the first half of financial year 2021.
VMT Managing Director Charles Chen commented:
‘Greenmo Group, including GO Sharing, continues to grow from strength to strength in the Netherlands and beyond, having entered Turkey, Belgium, Germany and Austria as part of their aggressive global expansion plans.
‘Greenmo Group has been Vmoto’s partner for more than five years and we are excited to participate in Greenmo Group’s significant growth as their preferred electric scooter supplier for their ride-share and rental delivery offerings. We look forward to growing hand in hand together with Greenmo Group and expect to receive further significant orders from Greenmo in 2021 and beyond.’
How much opportunity is there in electric scooters?
VMT’s focus is on growing international B2B sales into the delivery, fleet, rental and ride-sharing markets.
A strategy that is supported by various European governments’ initiatives to encourage consumers to adopt electric vehicles.
Even with the impacts of COVID-19 resulting in a reduction of public transportation use, the uptick in home delivery services for food and parcels has helped to offset this loss in demand.
The company says it is well positioned to provide delivery services, which they say provide personal ‘green’ transportation, have strong load capacity for delivery operations and can operate over range with swappable battery features.
On a more macro-level, VMT could stand to benefit from the growing trend of ‘green’ investing.
According to the International Renewable Energy Agency, some US$95 trillion will be invested in the transition to a low-carbon economy over the next three decades.
Our resident energy expert, Selva Freigedo, reveals three ways you can capitalise on the looming renewable energy boom. Download your free report now.
For Money Morning