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Highlights:
- Vmoto Limited agrees to become the official provider of electric scooters to the Ducati Corse Team.
- The agreement signed between the two companies in this regard will provide Vmoto's brands with considerable exposure to global markets.
The shares of Global electric vehicle company Vmoto Limited (ASX:VMT) remained on investors’ radar on Tuesday (10 May 2022) after the company revealed that it will supply electric scooters to the Ducati Corse Team for the MotoGP & SBK Championship races in the 2022-2023 seasons.
Vmoto revealed today that a partnership in this regard has been signed with Ducati Corse racing, a division of Ducati Motor Holding S.p.A. (Ducati).
Vmoto shares were spotted trading at AU$0.375 per piece on ASX at 10.09 AM AEST today. In the last one year, the stock has fallen almost -3.85%.
Vmoto Limited is an ASX-listed company that manufactures and distributes electric-powered two-wheel vehicles.
Ducati is headquartered in Bologna, Italy. Being one of the most famous companies in the two-wheel (motorcycle) sector, Ducati has produced some of the world's leading and attractive motorbikes and has a long track record in motorbike racing.
Ducati has won 15 of the last 18 Riders' titles and 16 manufacturers' titles in the SBK Championship, while Ducati Desmosedici GP7 topped the world riders and manufacturers' rankings in the 2007 MotoGP Championship.
What does the agreement say?
As part of the agreement, Vmoto will provide the Ducati Corse Team with 11 units of the company's zero-emission scooters which will be used by all team riders, including the technical team, to move around the events.
It is to be noted that the deal also provides Vmoto's brands with considerable exposure across global markets and is likely to drive greater product awareness in the zero-emissions urban e-mobility sector.
Image Source: © Nikovfrmoto| Megapixl.com
Promising future of electric vehicles market
The world's focus on mitigating climate change impacts and the transition towards electric vehicles provides the company a strong environment to accelerate growth opportunities.
The electric vehicle (EV) market is expected to experience significant growth in the near future, given the world's increasing focus on sustainable business practices. As per a recent report, the global electric vehicle market size is expected to reach 39,208 thousand units by the year 2030, from an estimated 8,151 thousand units in 2022, at a CAGR of 21.7%. Electric passenger cars are the largest segment in the EV market.
The list of major EV manufacturers includes companies such as Tesla, Volkswagen, Toyota, Nissan, Honda, Hyundai, Volvo, GM, etc.
Vmoto's 1Q22 market update:
As per the company's 1Q22 market update released earlier this month, Vmoto's total international units sold in 1Q22 were up 35% on 1Q21 and up 96% on 1Q20. This demonstrates the company's strong momentum in the business. As of 31 March 2022, the business had a cash position of AU$24.7m, with zero bank debt
