Lithium battery pack maker C-Tech United will invest NT$250 million (US$8.8 million) in electric motorcycle vendor Ottobike for a nearly 20% stake, becoming its second largest shareholder next only to Vietnam Precision Industrial (VPIC), according to C-Tech.
Amid growing global demand for electric motorcycles, the investment will enable the forming a strategic alliance to provide lithium battery solutions for Ottobike, C-Tech chairman and president Karl Huang said.
VPIC reportedly supplies precision components for Taiwan-based motorcycle maker Kwang Yang Motor; Japan's Honda Motor and Yamaha Motor; US-based Harley-Davidson; and Italy-based Ducati Motor.
C-Tech seeks business opportunities through VPIC's relations via the investment, Huang noted.
Ottobike develops electric motorcycles for own-brand sale and has built international reputation through attending EICMA in Milan, Italy for three consecutive years, company president Jerry Hsu said.
Ottobike will launch new electric motorcycle models in Italy, Germany, Spain, the UK and other European countries in first-quarter 2021 and then in Southeast Asia in the second and third quarters, with target sales of 5,000-6,000 electric motorcycles for six new models in 2021, Hsu indicated. Ottobike focuses on mid-range and high-end electric motorcycle models with sales prices of over ERU12,000 (US$14,556).
C-Tech has set up a lithium battery pack factory in China and another with monthly production capacity of batteries enough to be used in 200,000 electric motorcycles in northern Taiwan, with production to kick off in second-quarter 2021, Huang noted, adding that C-Tech has received orders for notebook- and IT device-use battery packs with shipments scheduled until the end of June 2021.
C-Tech has acquired land in northern Taiwan for constructing its new headquarters at NT$700 million, with construction to be completed by year-end 2023.
C-Tech has reported consolidated revenues of NT$219.6 million for December, increasing 6.67% sequentially and 0.98% on year, and those of NT$2.224 billion for 2020 decreased 18.93% on year.
Ottobike president Jerry Hsu (left) and C-Tech chairman Karl Huang
Photo: Aaron Lee, Digitimes, January 2021
