Hi Buyer,Good read thanks, Fortunately VMT know well that there...

Hi Buyer,

Good read thanks, Fortunately VMT know well that there isn't a market selling expensive bikes to cashed up Sports bike riders.

Targeting the delivery rider has been VMT's most successful market even before subsidies,

Last mile delivery is the catch call for ev 2 wheelers.

VMT have been selling to business customers who do lots of Kms based on cost of ownership and operating tables since well before they abandoned B2C to concentrate B2B.

In the interim period Super Soco went belly up pushing that barrow up hill for the last 9 years developing very good consumer bikes when there wasn't much much market for them unless you were loss leaders and dirt cheap.

For recreational riders who don't keep their bike on the road for 40 or 80 hours a week the tables simply prove that EV sports bikes are only for those who are allergic to the sound and smell of Gas exploding and want to feel good and enjoy the thought of their cash burning ever so quietly.

With the current cost of living crises causing people to concentrate on saving their home and not worrying too much about saving the planet VMT growth period has been slowed.

The big risk is that their recent re-entry into the B2C sector when governments started to susidise it, has come at a time when that sector has collapsed.

Should we be worried that they will follow in Super Soco's footsteps and go belly up.

The tea leaves would indicate that is not a problem because

* they don't have massive fixed overhead associated with R&D because they sub contract the B2C side of the Architectural design to C Creative and Pininfarina and can turn the tap off instantly.
* As of the 31st Dec 23 they have written off all the Rand D costs and are carrying only $2.7m for the costs of Super Soco's patents which chewed up some $130m of invested capital before the liquidator sold them.
* If times stay tough new models can be put on the back burner and they can make a profit selling the existing models to the available market at a profit because they only have to where manufacturing costs on the existing models.

Sales will grow very quickly when a big pile of the competition that were selling at a loss have been wiped out and the world at large gets back to wanting to save the bits of the planet that haven't been destroyed in all the conflicts that have smashed our market.