South Korea’s electric motorcycle manufacturer ZENTROPY has inked an export deal with the Thai conglomerate SVI Public Company for electric motorcycles. The initial shipment set for the first half of this year comprises 200 units, with a commitment to supply 5,000 electric motorcycles over three years, in addition to battery packs and battery swap stations.

SVI, a global manufacturing powerhouse from Thailand, boasts annual revenues of 1 trillion KRW, primarily from automotive parts, medical devices, and telecommunications gear, with 80% of its sales in North America and Europe. The company has recently branched into new ventures, including electric vehicle charging and electric motorcycles.

At the end of last December, ZENTROPY shipped two ZENTROPY Jet test models and a battery swap station to Thailand. Over approximately three months, SVI conducted real-world road tests. Following the testing of the ZENTROPY Jet model, which confirmed its durability and market appeal, SVI and ZENTROPY formed a task force in late February. They worked together to formulate a business model, identify target customers, and define the scope and approach for technology transfer, culminating in a final agreement.

According to the Federation of Thai Industries, Thailand produced 2.2 million internal combustion engine motorcycles and sold 1.88 million units in 2022. The Thai market is thus over 15 times larger than Korea’s. The Thai government aims to convert 30% of motorcycle production to electric by 2030 and encourages local manufacturing by imposing a 60% import tariff on finished products, while providing subsidies for CKD (Completely Knocked Down) assembly companies.

Lee Jae-sang, CEO of ZENTROPY, remarked, “After a year-long evaluation of Indonesia, Vietnam, and Thailand, focusing on the Thai market became our strategy. Thailand’s preference for high-performance motorcycles over 150CC, which comprises 30% of their market, aligns with our vision more than Indonesia and Vietnam, which lean towards low-cost electric bikes. Our strategic interests matched with SVI’s ambition to upscale the electric motorcycle segment in Thailand, leading to our partnership.” He further noted, “Our collaboration with SVI will transcend the traditional supply-demand relationship to encompass joint development, production, and entry into the global market for new mobility solutions.”