Vmoto’s 2Q25 Sales Fall 44% Amid China Slowdown, Uber Partnership Boosts Hope
Vmoto reports a sharp 44% decline in 2Q25 sales driven by China’s slowdown but counters with strategic UK investment and a new Uber partnership to electrify European delivery fleets.
- 44% drop in total unit sales in 2Q25, mainly due to China
- Strong cash position of A$34.5 million and A$11.5 million bank facility drawn
- Expanded 20.2% stake in UK delivery operator Zenion Limited
- New partnership with Uber to supply electric mopeds across seven European cities
- Termination of joint venture with Skipper Run in Thailand
Sales Decline and Market Challenges
Vmoto Limited’s latest quarterly update reveals a significant 44% decline in total unit sales for the second quarter of 2025 compared to the same period last year. This downturn is primarily attributed to weaker sales in China, a key market for the company. International sales, however, showed only a modest 2% decrease, suggesting more resilience outside China.
The company’s management remains cautiously optimistic, anticipating a sales rebound in coming quarters. This optimism is underpinned by a more favorable funding environment in Europe and South America, alongside growing recognition of Vmoto’s electric delivery mopeds as robust and reliable by major B2B customers, including Uber.
Strategic Investments and Partnerships
In a bid to strengthen its foothold in the B2B electric mobility ecosystem, Vmoto has increased its investment in Zenion Limited, a UK-based last-mile delivery operator. Now holding a 20.2% stake, Vmoto is leveraging Zenion’s growing rental and servicing operations to expand its presence in the UK market. This move aligns with Vmoto’s broader strategy to build recurring revenue streams through rental models and battery swapping infrastructure.
Complementing this, Vmoto has forged a new international partnership with Uber, aiming to electrify Uber’s motorbike courier fleets across seven major European cities. This collaboration will see Vmoto offering its electric mopeds for purchase, rent, or lease to Uber partners, supporting Uber’s ambitious goal to transition 100,000 couriers to electric vehicles by 2030.
Operational and Financial Position
Vmoto’s cash position remains solid at A$34.5 million as of June 30, 2025, despite negative operational cash flow during the quarter. The company has drawn A$11.5 million from a low-interest bank facility to fund the construction of a new manufacturing facility in Nanjing and to establish assembly operations in Thailand. The new Nanjing plant is expected to be completed by the fourth quarter of 2025, potentially boosting production capacity and operational efficiency.
Meanwhile, Vmoto and its Thai joint venture partner Skipper Run have mutually agreed to terminate their collaboration due to Skipper’s strategic shift towards solar panel business. This marks a retreat from the Thai market but allows Vmoto to focus resources on more promising regions and partnerships.
Outlook and Market Positioning
Despite current headwinds, Vmoto is sharpening its focus on B2B markets, where demand for electric delivery vehicles remains robust. The company is actively rolling out battery swapping and fast-charging stations, aiming to offer integrated e-mobility solutions that enhance customer value and stickiness.
Global trends toward electrification, supported by government policies, continue to underpin Vmoto’s long-term growth prospects. The company’s strategic moves in Europe and the UK, combined with its partnership with Uber, position it well to capitalize on the accelerating shift to electric delivery fleets.
Bottom Line?
Vmoto’s strategic pivot to B2B partnerships and infrastructure investments could turn the tide on its sales slump, but execution risks remain.
Questions in the middle?
- How quickly will the new Nanjing facility ramp up production and impact sales?
- What commercial traction will the Uber partnership gain in Europe over the next year?
- Will Vmoto pursue further joint ventures or investments after exiting Thailand?