Vmoto Limited (ASX:VMT) has pointed to a “continuing volatile economic environment in Europe and China” for explaining why its EV sales are down -50% YoY.
The EV scooter player – think a moped, and not a rent-a-ride scooter you see in the CBD – reported sales were down -50% in 2Q24 vs 2Q23.
Sales this year for the period were 4.16K units; international unit sales were at 2.31K – both roughly down by half, despite “firm international orders” for 1.7K units as at 30 June 2024.
Vmoto is still cash flow positive, it reported on Friday, with a facility of just over $41M from which only $3.3M has been drawn.
The biggest thing remaining on Vmoto’s plate is the construction of its manufacturing facility in Nanjing, China, set for completion in 2H25. Artistic renders of the facade look promising.
Notably, Vmoto reported fielding interest from Citigroup through the quarter with a view towards its product line and synergies. Citi has been criticised for flooding New York City with ‘Citibikes,’ well known for their natural attraction to the bottom of rivers.
Vmoto operates in a space on the flank of the traditional EV market (where four door cars are concerned) but trends it is facing do harmonise with the larger market – it appears everyone on earth who would’ve rushed out to buy an EV has now done so.
Demand is stalling, helping to push down lithium prices (though oversupply is the far bigger catalyst.)
Regardless, the company is going to invest in Zenion Limited in the weeks and months ahead, a UK business providing delivery services – through which it appears to hope to better distribute its own EV scooters.
VMT last traded at 12.5cps.