India - FortunEV - Ridesharing, page-33

Australian product . Nice touch.

It will be essential to get the lower import duties and Fame Subsidies to compete.

If the CKD pack with local assembly doesn't comply the current arrangements will no longer be viable and a change of plan will be necessary.

With maybe 10,000 knocked down units sold last year thats probably enough turnover to make local manufacturing viable. I was thinking JV but maybe Vmoto could manufacture all the parts that aren't outsourced in its own Indian factory. if they did that it would make sense for them to also assemble the bikes and sell to a distributor.

They could maybe increase the throughput and also supply knock down packs of the ASIAN line of products to JV partners in other Asian countries. Lots of possibilities and I'm sure they will tell us about the solution to the tax and subsidy issues in due course.


On the question of viability. In 2018 there were 10,875 units sold for an EBITDA of $50k after paying $1,750k in corporate costs. Definitely a proven market thats big enough to jump in profitably from day one.