InfraCo Asia, part of The Private Infrastructure Development Group (PIDG) company, has provided a $4-million convertible loan to Vietnamese electric two-wheeler manufacturing company Dat Bike while annual passenger EV sales in SE Asia more than tripled in 2023, according to a report.
PIDG announces investment in Dat Bike
InfraCo Asia, part of The Private Infrastructure Development Group (PIDG) company, has provided a $4-million convertible loan to Vietnamese electric two-wheeler manufacturing company Dat Bike, according to an announcement.
The loan will allow Dat Bike to more than double its production capacity through facility expansion, tool optimisation, and increased automation.
Dat Bike is the only vertically integrated electric motorbike manufacturer in Vietnam and one of three local e-motorbike producers. It runs all its research and development, as well as vehicle builds from inside the country, and more than 90% of its spare parts come from domestic sources.
The loan provided by InfraCo Asia is expected to facilitate the adoption of more than 30,000 e-two-wheelers in the next two years.
“Providing existing companies with growth capital to support climate action forms part of our PIDG 2030 Strategy for sustainable development in emerging markets in Asia and Africa,” said InfraCo Asia’s Investment Management Director Karen TsangHounsell.
In 2022, Vietnamese electric motorbike startup Dat Bike secured $8 million in a new funding round led by Singapore-based Jungle Ventures. GSR Ventures and Delivery Hero Ventures also participated in the round, along with Wavemaker Partners and Innoven Capital.
Passenger EV sales triple in 2023 in SEA
Annual passenger EV sales in Southeast Asia more than tripled to 153,500 in 2023, driven by policy support and a growing presence of Chinese automakers in the region, according to Southeast Asia Electric Vehicle Outlook 2024 by BloombergNEF.
Southeast Asia’s efforts to promote the adoption and local manufacturing of electric vehicles (EVs) are showing promising early signs. Sales in Thailand alone quadrupled to 86,400 EVs, while Vietnam benefitted from Vinfast’s expanding market ambitions.
Southeast Asia’s electric two-wheeler market stalled in 2023, growing by just 3.8% annually, with sales falling in several markets. Vietnam remained the region’s biggest electric two- wheeler market with more than 80% of the vehicles sold throughout Southeast Asia.
Several local and international companies are now offering electric two-wheelers that can better compete with popular internal combustion engine vehicles.
Looking ahead, BloombergNEF projects that by 2040, passenger EV sales in Southeast Asia could rise to nearly 2.7 million units, constituting 56% of total sales. Yet, internal combustion engine vehicles are expected to still make up 76% of the fleet. Accelerated EV adoption driven by enhanced governmental policies will be crucial for meeting net-zero targets.