Dat Bike, the fastest-growing electric motorcycle brand in Vietnam, has partnered with PIDG to secure substantial funding to enhance its production capacity and meet the growing market demand.
Partners from PIDG and Dat Bike explore the 'Quantum' electric motorcycle .
Dat Bike, a rapidly growing electric motorcycle manufacturer in Vietnam, has received a $4 million conversion loan from InfraCo Asia, a member of the Private Infrastructure Development Group (PIDG). This investment marks a significant milestone in Dat Bike's journey, enabling the company to double its production capacity through facility expansion, tool optimization, and increased automation.
Dat Bike is a bright spot in Vietnam's electric vehicle market, positioning itself with high-performance products at reasonable prices. This combination has made the brand a focal point attracting both investors and customers. As the only electric motorcycle manufacturer in Vietnam with a vertically integrated system, Dat Bike controls the entire production process, from research and development to assembly. Dat Bike's commitment to building a domestic supply chain and developing with an innovative focus is further demonstrated by the fact that over 90% of its components are manufactured domestically.
In just five years, Dat Bike has launched four new models, each design offering practical value to consumers and contributing to business growth. With continuous, uninterrupted firmware updates and product improvements, the company demonstrates a unique and effective strategy, ensuring users always have access to the latest technology.
The US$4 million loan from InfraCo Asia is expected to fuel the deployment of over 30,000 electric motorbikes within the next two years, with the potential to reduce emissions by nearly 26,000 tCO2e (tons of CO2) annually and significantly contribute to Vietnam's carbon reduction efforts. The transaction is also expected to create 30 short-term and 29 long-term jobs, with a focus on gender diversity, and 24% of these positions are expected to be held by women. This initiative aligns with two of the United Nations Sustainable Development Goals: SDG 11 – Sustainable Cities and Communities and SDG 13 – Climate Action.
Dat Bike's manufacturing plant is located in Ho Chi Minh City, Vietnam.
Karen Tsang-Hounsell, Director of Investment Management at InfraCo Asia, emphasized the strategic importance of this partnership: “Providing growth funding to companies that are actively supporting climate action is part of our PIDG 2030 Strategy, which focuses on sustainable development in emerging markets in Asia and Africa. We believe Dat Bike has the potential to drive the adoption of electric vehicles and shape a greener, more efficient transportation future through its innovative, pioneering solutions.”
Mr. Son Nguyen, CEO of Dat Bike, expressed his enthusiasm for the growth prospects thanks to this funding: “With this special support, Dat Bike will accelerate its expansion to meet the growing demand for electric motorcycles in Vietnam. As the fastest-growing company in the industry, we have a unique advantage to lead the green transportation transformation across the region. Dat Bike's growth demonstrates the potential of the electric vehicle supply chain in Vietnam.”
The electric motorcycle market in Vietnam is experiencing rapid growth, with an annual market penetration rate reaching the highest in Southeast Asia at 16% in 2023. This figure is projected to reach 40% by 2040. Dat Bike has currently raised over US$25 million in capital, demonstrating the company's influence and potential to dominate the market.
With zero emissions during operation, electric motorcycles are a more environmentally friendly option compared to vehicles using internal combustion engines. Furthermore, the rechargeable lithium-ion batteries used in Dat Bike electric motorcycles are easier to recycle than the toxic lead-acid batteries found in gasoline-powered vehicles and previous generations of electric motorcycles. This is a crucial factor in promoting sustainable greening of transportation in Vietnam.
Vietnam.vn
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