UPDATE 1.35pm: Electric scooter manufacturer Vmoto has announced a foray into the electric three and four-wheel vehicle markets in China by way of a new joint venture company.
Vmoto said it would pay $1.5 million for a 20 per cent stake in the new entity, which would design, manufacture and distribute electric three and four-wheel vehicles in China and international markets.
The joint venture would target the manufacture and distribution of between 20,000 and 50,000 units in its first year.
Vmoto's managing director Charles Chen said demand for electric three-wheel and four-wheel vehicles was increasing at a fast pace in China.
"The Chinese government's initiatives to encourage the development and use of electric vehicles within the country for environmental reasons have been and will continue to drive the growth of the country's electric vehicle market," he said.
"Vmoto's partners in the new joint venture have extensive networks and significant resources to support the success of the new three-wheel and four-wheel vehicle operations."
However Vmoto said it could not reveal its partners in the joint venture because of confidentiality restrictions.
Mr Chen said the company had done extensive market research on the three and four-wheel electric vehicle markets and had a strong understanding of opportunities, products and product trends.
The new joint venture would use Vmoto's existing manufacturing facility at Nanjing in China, which has excess space and capacity to support the new business without affecting existing manufacturing operations.
Shares in Vmoto were up 0.2 cents, or 5.13 per cent, to 4.1 cents at the close.