BANGKOK - Zapp Electric Vehicles Group Limited (NASDAQ:ZAPP), a British electric vehicle brand with a current market capitalization of $6.11 million, has announced the opening of a new microfactory in the Bangkok Free Trade Zone, Thailand. According to InvestingPro data, the company faces significant financial challenges, with its stock down over 72% year-to-date. The facility, established in partnership with AIH Group, was completed in under three months, outpacing its initial timeline.
The microfactory is ISO 9001:2015 certified and occupies a compact area of 12,000 square feet, yet it boasts the capability to produce up to 20,000 units annually. It employs Zapp's proprietary assembly process and is designed to meet the company's 'gen-2' sustainable assembly objectives while offering highly personalizable products like the i300 electric two-wheeler. InvestingPro analysis reveals the company's current financial health score is weak at 0.55, with 12 additional key insights available to subscribers.
Swin Chatsuwan, Founder and CEO of Zapp EV, stated, "The creation of this facility as a template for more locations enables us to scale production quickly to meet demand." Corrie Kotze, CEO of AIH Group, also commented on the strategic significance of Bangkok as a production hub for the electric two-wheeler industry.
This development is part of Zapp's strategy to expand its production capabilities globally. The microfactory model can be replicated in other regions with high demand for electric two-wheelers, such as the Indian subcontinent and South America, each with the same production capacity.
Zapp's approach to the market includes a direct-to-customer experience, where its i300 model can be ordered online and delivered to customers' homes by authorized personnel, who also provide inspection, service, and support throughout the vehicle's lifecycle.
The information in this article is based on a press release statement from Zapp Electric Vehicles Group Limited. With the company's stock currently trading at $1.53, investors seeking deeper insights into Zapp's financial metrics and growth potential can access comprehensive analysis through InvestingPro.
In other recent news, Zapp Electric Vehicles Group Limited has inked a deal with AIH Group to construct a new manufacturing facility in the Bangkok Free Trade Zone. Slated for completion in early 2025, the site will exemplify Zapp's Gen-2 sustainable assembly and flexible manufacturing capabilities. This development is part of Zapp's strategy to target regions with high sales growth potential, with each new site projected to have an annual production capacity of up to 20,000 units.
Further, the company has initiated sales of its i300 model in Thailand, with the new site expected to boost both domestic sales and exports. The i300, an urban electric two-wheeler, is part of Zapp's direct-to-customer model, which aims to streamline delivery times. The company has also received approval for i300 sales in Thailand and the United Kingdom (TADAWUL:4280), marking a significant step in its global expansion.
In collaboration with Bounce Electric 1 Private Limited, Zapp plans to manufacture the i300 in India, with a minimum capacity target of 5,000 units per year. Additionally, Zapp shareholders have approved a reverse stock split at a 1-for-20 ratio, reducing ordinary shares from 500 million to 25 million to increase the nominal value of shares. These recent developments underscore Zapp's commitment to redefine the electric two-wheeler segment and broaden its global reach.
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