Malaysia's Treeletrik to sell 200,000 e-bikes, set up plant in Indonesia
By Charlotte Chong
KUALA LUMPUR, NNA - Malaysia's electric vehicle (EV) producer Tree Technologies Sdn Bhd (Treeletrik) plans to set up an assembly plant in Indonesia to capitalize on the growing demand for electric motorcycles.
A joint venture between Treeletrik and Indonesia's PT Pasifik Sakti Enjiniring is in the pipeline, said Treeletrik in a media statement.
“This would streamline supply chain efficiencies and improve margins through local assembly in markets with sufficient demand," said Treeletrik, adding that the move will help support the Indonesian economy with talent development, job opportunities and technology transfer.
Meanwhile, Treeletrik has inked a three-year deal with PT Pasifik Sakti Enjiniring and Nahdatul Ulama Board (PBNU) to market 200,000 Treeletrik electric motorbikes worth $274 million in Indonesia starting this year.
This works out to about $1,370 for the fully electric bike for the joint distributors.
The deal will see Treeletrik supplying a minimum of 10,000 units of its e-motorbikes this year to the distributors. This will be followed by up to 90,000 units in 2022, and then, up to 100,000 units in 2023. PT Pasifik Sakti Enjiniring, which already handles the electric motorbike brand, MOLINUS (Motor Listrik Nusantara), will now add Treeletrik bikes to its portfolio.
It said, "Treelektrik's newest regional distribution partnership taps into Indonesia's large population of motorbike users, a positive growth indicator for the brand. Treeletrik's portfolio of electric motorbikes and electric commercial vehicles seek to redefine the EV industry and future of mobility in Malaysia and ASEAN."
Treeletrik CEO Viswananthan Menon said, "We are thrilled to further our efforts on the regional stage through this partnership with PT Pasifik Sakti Enjiniring and PBNU in Indonesia to provide a transportation option that is clean, safe, and affordable, with our advanced EV technology. Our 100 percent electric motorbikes offer customers long-term cost savings, and more importantly, contribute towards an overall positive impact to the environment."
Menon said the company will also export another 5,000 units to other countries this year.
Treeletrik said the Indonesian partnership extends Treeletrik's regional presence as a key player in promoting electric mobility and supporting ASEAN's energy transition agenda.
The partnership also positions Malaysia as a key EV manufacturer and the first regional supplier to export units within the ASEAN economic bloc.
“Our sales in Malaysia are mostly B2B and it has been encouraging and growing. As of today, our major business is coming from other ASEAN countries as their EV policies are in place,” Menon said.
"The region's ultimate goal of decreasing the level of final energy consumption in the road transport sector by 2040 paves the way for EV makers like Treeletrik to continue building a progressive EV ecosystem," said Treeletrik in its statement.
In preparation to fulfill its growing order books, the company has also invested 5 million ringgit to boost production in Malaysia. Apart from enhancing assembly, production and marketing facilities in Selangor, it has purchased a 250-acre of land in Gebeng in the state of Pahang to build a future facility, Menon said.
"The sizable orders secured to date and ongoing discussions with other countries expressing keen interest in Treeletrik's e-bike range, will result in significant expansion in both Malaysia and international operations of Treeletrik," he said.
The EV player began exporting about 50 units of electric motorbikes to Thailand and Indonesia in 2020, with an additional 15,000 units due to be exported this year. Other markets Treeletrik is eyeing include The Philippines and Cambodia.
Treeletrik's new electric motorbike range, which is certified in Europe and Malaysia according to the latest industry standards, will feature the brand's signature quick swap lithium battery technology. With an average speed of 65-90 kilometers per hour, the bikes have a travel range of 85 to 120 kilomeers.
CEO Menon told NNA that it would be convenient for bike owners to charge their vehicles anywhere with a common 220V or 240V 220V power point such as their home, office or at a café.
He added, “We can easily install app-based vending machines that can accept a drained battery and produce a fully-charged battery with the price at a fraction of full-tank petrol.”
Such machines can be placed at convenience stores or petrol stations, he said.
New York-based Ideanomics acquired 51 percent ownership of Treeletrik in 2019. The company has since begun organizing itself for growth in the ASEAN region to tap the region's heavy reliance on two- and three-wheeled transportation. Ideanomics is a global company focused on the convergence of financial services and industries experiencing technological disruption.