Kwang Yang Motor Co (光陽工業), which sells electric scooters under the brand Ionex, said it is making strides to expand into Southeastern Asian markets with its first electric scooter in Thailand to be launched next week in Bangkok, about 13 months after forming a joint venture with PTT Public Co.
Thailand would serve as a base for the company to expand in Southeast Asia, with Indonesia the next destination, given its long-term partnership with ride-hailing company Grab, Kwang Yang said yesterday.
The Kaohsiung-based company is ready to take orders for its S7 electric scooter next week when it opens a flagship store in Bangkok, Kwang Yang chairman Allen Ko (柯勝?) told a news conference in Taipei.
Photo: CNA
The company plans to roll out two more models in the next six to 12 months, Ko said.
“We are not going to set a high sales target, as our priority is to build brand awareness and deliver good customer service,” Ko said. “As we are set to offer new models for the mass market, we are expecting to sell several thousand electric scooters next year.”
Kwang Yang has built 30 battery swap stations, mostly in Bangkok, through the joint venture and it expects to more than double that to about 70 next year, he said.
The firm is seeking collaborations with companies in Thailand to provide green energy, he said.
The company formed a three-way venture, Aionex Co, with PTT Public Co subsidiary Arun Plus Co and venture capital KYMCO Capital Private Equity Management Co (金庫資本) in August last year.
Arun has a 51 percent stake in the venture, while Kwang Yang and KYMCO Capital own 29 percent and 20 percent respectively.
Overseas expansion is essential for Kwang Yang as it seeks growth, particularly in Southeast Asia. The region boasts a sizeable market, with new scooter sales totaling 150 million units a year compared with about 800,000 units in Taiwan.
The company’s market share in Taiwan had risen to 22.2 percent as of Sept. 30 from 15.9 percent a year earlier, while market leader Gogoro Inc’s (睿能創意) share dropped to 67.4 percent from 69.7 percent in the same period.
A major shakeup in Gogoro’s board of directors after chairman and chief executive officer Horace Luke (陸學森) stepped down from his posts last month has prompted concern about the growth prospects of Taiwan’s electric scooter market.
However, Kwang Yang said it had not detected any adverse impact yet.
“It is normal to see ups and downs before a new technology prevails as the Internet and smartphones experienced,” Ko said.
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