Malaysia’s MCE Ventures Sdn. Bh (MVSB) and China’s Chongqing Beidou Jiean Neo-Energy Technology Ltd. (BDJA) has signed an MoU to establish a Joint Venture (JV) to develop electric and hydrogen motorcycles in Malaysia.
The joint venture will act as a centre for research and incubator to accelerate the local product development capabilities for electric and hydrogen motorcycles. Both partners agreed to design, develop, manufacture and assemble the electric and hydrogen bike. They will also work on the battery pack system, including the battery management system and its required software.
MVSB will offer its expertise to produce, assemble, supply, distribute, and promote the products in the agreed territory. BDJA will provide technology for product design and development, product testing, technical assistance, and information for MVSB to manufacture and assemble the products in the agreed territory.
Once the partners confirm the viability of the collaboration, both partners will enter into an equity joint venture agreement to specify more detailed arrangements on designing, developing, manufacturing and marketing the products, including technical assistance and support. MVBS holds 30% of total equity shares in the Malaysian JV, and BDJA has 70% of total equity shares.
The investment is planned over three years with an initial investment of RM 1 million (US$ 0.24 million), which would be subsequently increased further based on the equity ratio to be mutually agreed by both parties. MVSB may consider increasing its equity shareholding participation in the JV to over 50% in the future once the profit rises RM 5 million (US$ 1.19 million).