KUALA LUMPUR, Jan 9 — EP Manufacturing Bhd’s (EPMB) wholly-owned subsidiary, EP Blueshark Sdn Bhd (EBSB), has entered into a master agreement with Singapore-based Averte Global Pte Ltd and Hong Kong-based Blueshark Group Ltd to collaborate on capturing electric motorbike business opportunities in Indonesia and Vietnam.

In a filing with Bursa Malaysia today, EPMB said it would be supplying the e-motorbikes to a joint venture company called Averte Blueshark Asia Ltd (Averte Blueshark), formed and incorporated by Averte Global and Blueshark Group.

It said that the agreement would be for a five-year period, and at least two million units of its e-motorbikes, including all accessories and all accompanying or necessary software, would be purchased by Averte Blueshark during this period.

"The master agreement will provide an opportunity for EPMB and its subsidiaries for business expansion into the Indonesia and Vietnam markets and is expected to contribute positively to the group’s revenues in the next five years,” it said.

EPMB said an initial purchase of 23,000 units from EBSB has already been made for delivery in the first quarter of 2023.

It said the price for each e-motorbike is expected to range from US$1,850 to US$3,900 (RM8,095 to RM17,066).

"EBSB shall sell and Averte Blueshark shall purchase the quantities of the products which the purchaser orders, subject to the terms and conditions as stipulated in the master agreement,” it said.

In a statement, EPMB acting chief executive officer Lim Sim Yee said the company sees tremendous growth opportunities for two-wheeler e-vehicles in Indonesia and Vietnam.

She cited an independent study by market research provider Research and Markets, which showed that the Indonesian e-bike market, for example, is forecast to grow at a compound annual growth rate of 20.96 per cent to reach US$816.2 million by 2025.

"EPMB hopes to be at the forefront to capitalise on this demand,” she said. — Bernama