Challenger Motinova plans ambitious growth

BINH DUONG (VN) - Motinova, a relatively new Chinese manufacturer of e-bike motors, has opened a new factory in Vietnam to enter the European market, without being bothered by raised tariffs on Chinese e-bikes from Europe and the United States.

Behind Motinova is HL Corp. from China, who has decades of experience in the bicycle industry with well-known brands such as Satori and Zoom. In addition, with TTIUM MOTOR they have also been active in the Asian market for years as a supplier of mid-motors for e-bikes. In 2018, HL Corp and TTIUM Motor jointly launched the new e-bike motor brand Motinova for bicycle manufacturers around the world.

A production facility is recently opened in Vietnam in the presence of bicycle manufacturers, suppliers and media. CEO Daniel Liu spoke of a great pleasure in celebrating this opening together, but also pointed to the raised tariffs from both Europe and the United States. “In the past year the European Union and the United States have increased their rates on e-bike products exported from China. As a result, the e-bike industry in China is facing a number of challenges," Liu said. “That is why we quickly decided to open a production facility for Motinova in Vietnam. Up to now autonomy rate of the Motinova products in Vietnam has reached 50%, which meets the certificate of origin standard in Vietnam."

CAPACITY GROWTH
The Vietnam factory imports a complete set of production equipment and process from China and follows the same production and quality management system as the Chinese factory. “We send Vietnamese colleagues to China for training and education. Conversely, we also send Chinese employees to Vietnam to assist local colleagues in mastering the production process,” says Liu.

At the grand opening, two of the four planned assembly lines were operational, which means that Motinova now have a capacity of 3,000 engines per month. But the capacity will be expanded to 100,000 units in 2020. Liu indicates that a second phase is also planned for further expansion. On the industrial site, land with an area of ​​10,000 square meters was purchased to realize an even greater capacity in 2021.

STARTING PHASE

Motiniva is represented on the European market by Arno Raaijmakers, general manager Europe, who states that e-mobility is still in the initial phase with opportunities to create a difference somewhere. “Competitive market behavior can be divided into leaders, followers, niche players and challengers. The leader is generally a large dominant organization, with the ability to set the tone with regard to products, prices and service,” says Raaijmakers. “The market leader must monitor his position on fronts such as market share, productivity and defend his position. Followers take little risks and do not make high investments in product, innovation and promotion. By keeping costs low, they will still achieve an acceptable profit. Niche players combine one or more specific segments with a unique approach and are often smaller parties and therefore more flexible. "

Raaijmakers says that Motinova should be counted among the challengers. “Challengers distinguish themselves in terms of product innovation and customer attention. That is why Motinova must be seen as a future-oriented, inventive product that meets existing market demand, based on equal or even better specifications with the best cost performance level. We create distinctive capacity for differentiation within the customer market," told Raaijmakers.

SERIOUS POTENTIAL
In Europe, Motinova can count on the technical support of Dewo Europe from Belgium. The company has been based in Brussels for over 100 years and is owned by Jogi Sienaert, who has a lot of experience in collaboration with Asian partners. “Since the beginning of this year we have the honor to be Motinova's partner for storage, office space and logistics service. Thanks to our central location, we can offer Motinova and its customers timely deliveries in most of Europe,” says Sienaert. “Thanks to the cooperation in recent months, we at Dewo feel that there is serious potential and a lot of interest throughout Europe. This is thanks to both Motinova's products and their professional and experienced team, which offers customers the support they want.”