Artroniq to assemble US-based Beno e-bikes in Malaysia
12 Jan 2023
Artroniq Bhd is venturing into the electric vehicle (EV) industry together with US-based Beno Inc.
The companies today signed a memorandum of agreement (MOA) to assemble Beno’s Reevo series of electric bicycle products in Malaysia.
“Artroniq will cooperate with Beno Inc, with the help of the latter’s technology and expertise in the field of electric vehicles, to fully enter the electric vehicle industry, starting with electric bicycles.
“The total value of this MOA is expected to exceed RM100 million by 2025 and create more than 100 job opportunities for Malaysian citizens,” Artroniq chief executive officer Kent Liaw Wei Gian said.
According to Liaw, the company targetef to assemble 2,000 units of e-bikes per month from March this year
For the first stage, he said Artroniq would take over the existing production plant to produce these e-bikes before exploring new locations to set up a new production plant.
“We plan to have a plant in Batu Kawan, Penang involving an investment of RM5 million,” he added.
Within the scope of the agreement, more than 95 per cent of e-bikes will be exported to the US and Europe.
Beno is a fast-rising company in the field of EVs, focusing on innovative two wheelers.
“They are well known as the creators of Reevo, the world’s first hubless e-bike with a growing market reach in the US and EU,” said Liaw.
This MOA marks the beginning of a partnership that Artroniq believes will be of great benefit to both organisations.
Under the terms of the agreement, Beno will grant Artroniq full assembly rights for the highly successful Reevo range and upcoming e-bike products for a period of two years.
Liaw said there was a huge opportunity in the electric bicycle market, with a compound annual growth rate of 10.5 per cent over the next seven years, and will reach US$40 billion by 2030.
“We believe that this partnership will not only be mutually beneficial but will also bring significant value to our customers and stakeholders,” he added.