Vmoto targets Indonesia in new deal

Perth-based Vmoto has signed an exclusive distribution agreement with Indonesian automobile company PT. Garansindo Technlogies to stock and market its electric scooters in the country.

Under an initial 10 year agreement, the next five years will see Garasindo order a minimum of 17,500 units.

PT. Garansindo Technologies is a subsidiary of PT. Garansindo Inter Global, Indonesia’s sole general distributor for brands including Chrysler, Jeep, Dodge and Fiat.

The Indonesian Motorcycle Industry Association says the seven residents to one motorcycle ratio offers room for growth when compared to neighbouring countries that have much lower motorcycle ownership ratios.

Around 82 per cent of Indonesia's 94.2 million registered vehicles are motorcycles or scooters. 

“We are delighted to have secured what we believe to be the first electric scooter distribution agreement in Indonesia," Vmoto managing director Charles Chen said.

"Discussions have been ongoing with Garasindo and their representatives for many months and the signing of this agreement is the start of what we hope will be a long and fruitful relationship with them."

Vmoto shares closed the day's trade unchanged at 2.7 cents.