VANCOUVER, Nov. 2 /CNW/ - Zongshen PEM Power Systems Inc. ("ZPP" or the "Company") (TSX:ZPP), is pleased to announce that its Toronto e-motorcycle has been awarded the 2010 China International Motorcycle Trade Exhibition ("CIMA") Innovation Achievement Award. CIMA which has been held since 2002, is the largest and most influential motorcycle exhibition in China and is recognized as one of the top motorcycle shows globally. The exhibition attracts top international and domestic Chinese manufacturers as well as dealers and motorcycle enthusiasts from around the world. This year the four day long event was held in late October and attracted approximately 400 exhibitors and more than 150,000 visitors. The theme of
this year's exhibition was to enhance the brand image of the Chinese motorcycle industry with a particular focus on commuter motorbikes, which account for 99% of all motorbikes sold in China.
ZPP showcased 7 gas bikes, 5 e-bikes and 2 e-motorcycles. The Toronto e-motorcycle is the first electric powered motorcycle to be marketed inside China and was chosen as one of ZPP's feature products. Toronto which was launched in early fall of this year, was more broadly introduced at the CIMA through a dedicated product briefing, media conference and dealer test-drive session.
The China market for electric powered motorcycles and bikes, is forecasted by industry analysts to grow at 11% annually until 2014 when an estimated 32 million electric powered bikes will be sold annually. ZPP believes that initially e-motorcycles will represent a small percentage of the electric powered two wheelers sold in China, but that they will become a more significant segment, driven by the value they provide to Chinese consumers and Chinese government policy supporting low emission vehicles. The current Chinese e-bike market is served by some 2,000 manufacturers that are producing electric bicycles or electric scooters that are comparable to small gas bikes (less than 50 cc) in terms of speed, range and power. The market for these small electric two wheelers is very large, estimated to be over 20 million units in 2010, however due to the fierce competition and low regulatory requirements for safety and quality standards, this business generates very low margins for the manufacturers.
ZPP's strategy is to leverage its gas motorcycle platform in manufacturing, distribution and branding to develop and expand the e-motorcycles and high-end e-bikes offerings. The Company believes that the e-motorcycle and high-end e-bike market will yield better margins per unit because of the higher technology, brand and quality requirements which effectively bar many of the smaller players from entry.
The Toronto e-motorcycle offers customers a revolutionary product in that it utilizes a unique powerful electric engine thereby combining the best features of e-bikes and gas motorcycles. Like an e-bike, the Toronto is low-cost to operate (roughly 1/10th the operating cost of a similar powered gas motorcycle) and is a zero emissions vehicle. The Toronto is differentiated from e-bikes because its engine and electric control system provide range, power and speed comparable to a 110-120 cc gas motorcycle. The Toronto is priced competitively against similar performing gas motorcycles in China, where annual sales of 110-120 cc gas motorcycles are estimated to be 8,000,000 units, making them the most commonly purchased motorcycle size in China.
ZPP also debuted a new 125 cc gas motorcycle called ZS Chuanqi (translated as "ZS Legend") targeted at the young and hip segment of the population. Early reviews from dealers are very positive as they are looking for new motorcycle models that comply with the newly enacted emissions regulations.
"We are very excited to receive recognition for our Toronto e-motorcycle. The award confirms that our technology is the best of class and that we are on the right path in our pursuit of low emissions bikes. I'm convinced that Toronto offers customers in the market for a 110-120 cc gas motorcycle a very compelling alternative choice given that Toronto is not only priced competitively, but is also a zero emissions vehicle and is low cost to operate," said Mr. Zuo Zongshen, Chairman and CEO of ZPP, "The award is a good start but we are at the early stages of introducing the e-motrocycle to the China market. We are committed to further improve our electric vehicles and expand our emotorcycles offerings"
