VivoPower and AVA Forge Agreement to Revolutionize Vehicle Assembly

VivoPower and AVA Create a Milestone Partnership

VivoPower International PLC (Nasdaq: VVPR) recently announced an exciting development as its subsidiary, Tembo e-LV, has entered into a significant agreement with Associated Vehicle Assemblers Ltd. (AVA). This collaboration aims to enrich the automotive landscape in East Africa by focusing on the production and distribution of electric utility vehicles (EUVs).

Key Features of the Agreement

The newly formed agreement is set to last five years, targeting the conversion of 200 vehicles in its first year, ultimately aiming for 1,600 conversions over the duration of the contract. This groundbreaking initiative marks a pivotal moment not only for Tembo but also for the East African region, which boasts a population of over 500 million people.

Local Impact and Services

This partnership allows AVA to distribute and locally assemble Tembo’s innovative 100% electric vehicles across Kenya, Tanzania, and other surrounding nations. The local service and maintenance capabilities that accompany the vehicles significantly enhance customer support and trust in sustainable transportation. This agreement builds on an earlier partnership with ETC Group specifically for Kenya.

Commitment to Sustainability

The collaborative efforts reflect a shared vision between VivoPower and AVA: a commitment to facilitating sustainable transportation and boosting local economies throughout East Africa. Matt Lloyd, CEO of AVA, highlighted the increasing demand for electric vehicles across both governmental and private sectors, stating that AVA chose Tembo due to its competitive pricing and high-quality offerings.

Growing Demand for Electric Vehicles

The electric vehicle market is rapidly expanding, especially in East Africa, prompting innovative responses from companies like Tembo. Their latest generation EUV25 electric conversion kits offer reduced pricing that has attracted a wave of interest from both new and existing clients. Matthew Nestor, Tembo’s Head of Partnerships and Sales, expressed excitement about this partnership, echoing AVA's recognition of Tembo’s engineering capabilities.

Leadership Perspectives

Kevin Chin, VivoPower's Executive Chairman and CEO, remarked on the significance of collaborating with AVA, emphasizing it as part of a strategic initiative to form alliances with established leaders in their respective markets. This collaboration aligns with their shared values and long-term goals for electrification and transformation.

About VivoPower and Tembo e-LV

Since its establishment in 2014, VivoPower has emerged as a global leader in providing sustainable energy solutions. The company is dedicated to customizing electric solutions for various demanding applications in industries such as mining, agriculture, and construction. VivoPower thrives on its core mission: empowering customers with comprehensive decarbonisation solutions that facilitate their journey towards a net-zero carbon future.

Tembo’s Electric Utility Vehicles

Tembo specializes in providing ruggedized 100% electric utility vehicles designed for a wide range of sectors including defense, agriculture, and humanitarian missions. With an emphasis on safety and performance, Tembo aims to enhance the operational efficiency of utility vehicle fleets while helping partners meet their environmental, social, and governance (ESG) objectives effectively.

The Role of AVA in East Africa

Associated Vehicle Assemblers Ltd. stands at the forefront of vehicle assembly in East Africa, recognized for its commitment to quality and innovation. Based in Mombasa, AVA has established a robust partnership network with renowned global automotive manufacturers. This enables them to provide cutting-edge assembly services while responding to local market demands. The partnership with Tembo enhances AVA’s portfolio, allowing it to pioneer electric solutions in the region.

Frequently Asked Questions

What is the significance of the partnership between VivoPower and AVA?

This partnership aims to enhance the production of electric utility vehicles in East Africa, targeting sustainability and local economic growth.

How many vehicles are expected to be converted under this agreement?

The agreement targets the conversion of 200 vehicles in the first year, aiming for a total of 1,600 over five years.

What types of sectors will benefit from the electric vehicles?

Beneficiary sectors include mining, agriculture, defense, NGOs, and government operations.

What is VivoPower's core mission?

VivoPower’s mission is to provide turnkey decarbonisation solutions, supporting clients in their journey towards achieving net-zero carbon status.

How does AVA contribute to the automotive industry?

AVA is known for producing high-quality vehicles tailored to meet regional needs, driving economic growth and supporting sustainable transport solutions.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

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