Welcome back, everyone. Next, we have Zapp Electric Vehicles. It's on a mission to electrify personal urban mobility. The company shares trade on the OTCQB under the symbol ZAPPF. Today, we're joined by CEO David McIntyre. David, welcome to the conference. We're very excited to hear your presentation. The floor is yours.
Thank you, Anna. Hello, I'm David McIntyre, the new CEO of Zapp Electric Vehicles Group Limited. This is a great opportunity to present the new Zapp under new management. As Anna just mentioned, we are on a mission to electrify personal urban mobility. There is so much potential for this company and what we are trying to build. The two pages of disclaimers apply to everything I'll be covering today. With that, I'll jump in. Most people in the U.S. are probably more accustomed to seeing streets full of cars. Outside the U.S., the transport mix can be very different. I've worked with European brands in Asia for more than 20 years. I've seen firsthand how important two-wheelers are for urban settings. The Zapp i300 was designed for personal urban mobility.
We think that we are developing the right products at a time when more customers are demanding to go electric on two wheels. Electrification on two wheels makes so much more sense than cars, which often carry hundreds of kilos of excess range. I believe Zapp is a challenger brand. I want to unlock that potential. Our first product, i300, has won nine design awards. The removable portable batteries can be charged from any standard wall socket. This avoids the need for any dedicated charging infrastructure. In addition to that, the bike was designed to be easy and fun to ride, with a low center of gravity and four-piston caliper brakes for better urban riding dynamics. After so many delays getting to market, I'm here to turn things around, move faster, and lead the team forward.
First and foremost, we'll be starting a limited production run of the Zapp i300 Oxford Street Edition, built at our facility in the UK. Most importantly, we are prioritizing getting these into the hands of customers. To do that, we are focusing on experiential marketing to drive demand. Longer term, we plan to expand Zapp's product lineup into additional high-growth segments. We think we have the plan to achieve our goals, demonstrating product-market fit with sales, while quickly scaling the business and building value for shareholders. Before we go further, it's important to identify the target markets for these products. The total two-wheeler market globally is big and growing. There were sales of $118 billion in 2024. This is expected to increase to $176 billion by 2032. Importantly, we anticipate more people will transition to electric vehicles.
The EV share of the market is expected to increase to at least 30% over that period. As I mentioned earlier, relatively few two-wheelers are sold in the U.S. This is because riding two-wheelers is more of a leisure activity in the U.S., which is reflected also in the types of bikes sold and the average retail price. While still relatively small numbers compared to Asia, three times more two-wheelers are sold in Europe compared to the U.S. If we look in more detail at the largest markets in Europe, we're a British brand, so our first sales efforts will be in the UK, although it is a relatively smaller market. Unsurprisingly, however, more two-wheelers are sold in Southern Europe. Interestingly, the largest market, France, also has the highest EV penetration. This would be the logical second market for us to commence sales of i300.
Another driver of EV adoption in Europe is legislation. Historically, there have been financial incentives to promote EV adoption, and now more cities are implementing restrictions around gasoline vehicles. By far, the biggest opportunity for us is in Asia. In fact, two-thirds of all two-wheelers sold worldwide are sold in India and Southeast Asia, and EV adoption is already higher in some countries. We know that price is a significant factor in buying decisions. We've recently brought Tom Briscoe on board, and Tom will be leading the reboot of i300, along with the introduction of new products to our lineup. Tom brings extensive design and engineering expertise to the team from his time with Dyson and with Pure Electric. Tom and I just returned from Vietnam, where we assessed the market opportunity for i125 in Southeast Asia.
Even though our products are designed for urban areas, we know riders in these markets want to charge batteries less frequently. Since price is a significant factor in buying decisions, we want to introduce a product that retains our bold design and convenient battery solution, while making it more affordable for riders that may not need higher performance specifications. In addition to the i125, we know that for some customers, an electric bicycle is their preferred solution for urban mobility. This is because many cities have already incorporated an extensive bike lane network. A license and helmet are not required, and it provides more flexibility for both on- and off-road use. This makes e-bikes another high-growth segment. In fact, right now, more e-bikes are sold globally than electric motorcycles and scooters combined.
We believe our design-led approach will result in a different and exciting e-bike, providing another entry point to the Zapp brand. With this expanded product portfolio, we believe we have the right strategy to meet the needs of more urban riders. It provides for a range of price points to improve affordability. It acknowledges different requirements for vehicle specification. It addresses more variation in rider lifestyle globally. Now, let's talk about our timeline. Our immediate focus is on building and selling our limited production run of i300 Oxford Street Edition. We have the capital to do this, and we're moving fast. Additional capital will be required to launch the expanded product lineup and to achieve our longer-term goals. In 2026, we plan to launch the e-bike and make i300 more widely available in Europe. We intend to start selling i125 in fiscal year 2027, once we complete the development program.
In terms of go-to-market, we are adopting a hybrid sales model. We can sell direct to customer via our own e-commerce platform. We can expand the reach of our e-commerce platform by working with online resellers and with influencers. We're also continuing to sign up retail stores that specialize in mobility solutions. For example, we recently partnered with SmartTech to display i300 in the bike shop inside Selfridges in London on Oxford Street. Seeing i300 hit the streets of the UK in the months ahead will be a big change for Zapp. Beyond that, this portfolio of products better positions Zapp to meet the needs of more people in more countries. Together, this gives us an opportunity to build a world-renowned electric vehicle brand on two wheels. We're blending modern design with dynamic performance and a British edge.
In summary, this is a new Zapp with a new management team, and we're moving fast. We're building and selling i300 Oxford Street Edition in the UK. We're focused on driving demand through test rides while expanding our product portfolio. Our capital needs are modest, especially when compared to four-wheel OEMs. We're committed to getting bikes on the road to realize Zapp's full potential. That's our presentation for today. Anna, I'm happy to take any questions.
Thank you, David. Yes, we do have a few questions for you. First of all, tell us a little bit about yourself and what brought you to Zapp and why you are a good fit to lead Zapp going forward.
Good question. Thank you. I've been in the automotive industry for 30 years with global premium and luxury brands. This included time in Latin America, as well as the last 20 years in Asia. I've seen how important two-wheelers are in the transport mix, especially in emerging markets. I bring a global perspective and deep experience growing European premium brands, especially in emerging markets, which is the biggest opportunity for Zapp.
You mentioned delays in getting to market. Talk about how the new Zapp moving forward will react to this under this new management.
Thank you. We are now focused on both building and selling products, and our marketing activities will be very targeted and focused to achieve these goals. In addition to that, we're using my industry network to accelerate our product development program. Ultimately, we're building a business, not just a brand.
Perfect. Please expand a little bit more on the experiential marketing plan for i300.
Test rides always drive sales. We'll be focused on getting as many potential customers as possible to ride our products. We're attending some high-profile events to generate leads. In November, we'll be carrying out a test ride roadshow to convert those leads to sales.
Perfect. Kyla wants you to talk about your competition. BMW has an electric one like you have. If you can talk about your competition out there, specifically any Japanese brands.
I'm here to talk about Zapp, not about other brands. We're focused on our business plan and delivering our business step by step, product by product, country by country.
Perfect. Jonathan wants you to know about your primary target market. Is it Southeast Asia? What other regions would you expand to geographically? What's next?
For the i300, our launch market is the UK. We would move on to France and the other major markets in Europe for two-wheelers. For the i125, obviously, the significant opportunity that presents itself in Asia is where we should start. In Southeast Asia alone, there are 14 million two-wheelers sold annually. We believe the i125 will be a product designed for and suited to that region.
Perfect. Can you talk about the timeline to get to the expanded product lineup and what that means?
Yes, as we've said, we plan to introduce the e-bike in 2026 and then start to sell the i125 in fiscal year 2027. As I mentioned, we're able to tap into my experience and network in the industry to accelerate our development programs.
Perfect. What is the service or maintenance like? How will that be handled? Can you address how warranty issues will be handled as well?
Yes, we will offer a warranty, of course, on the battery and on the bike, in line with other manufacturers in the industry. In terms of the after-sales solution, they will be provided either through our retail partners or, in some cases where it makes sense, we will offer a mobile van Zapper solution, which can provide a service at the customer's home or workplace.
Perfect. Are you setting up showrooms in the regions you're selling? If so, what do they look like?
Absolutely. Initially, we're launching in the UK. We're just very focused on selling the limited edition of 50 bikes, first of all. We have a retail partner in the west of London, and we're also in Selfridges. As we expand globally, we'll be appointing retailers in those markets. We'll then obviously have a clear corporate identity for those products. Our brand is one which I think the good thing with motorcycles is you don't need a lot of space. This is very attractive in terms of retail space and retail opportunity around the world.
Right. Are you selling online to anybody who wants one? What's the online process like?
Yes. In the UK, we're able to take orders now online for our products for the first 50 bikes. As we then expand into further markets, we'll open up that opportunity for those markets as well.
Great. Is your product different than a scooter? Someone's asking.
We call the i300 a performance city bike. It's a motorcycle class, L3E A1 class motorcycle, but with the step-through convenience of a scooter.
OK, perfect. What is the average selling price?
It will depend on the market, but the price for the limited edition i300 Oxford Street Edition is £5,495.
OK. Does Zapp have a financing partner?
It will depend on the market. We will be looking to either, through our retailers, for them to offer finance solutions or, where it makes sense, we'll partner with finance providers.
Just a few questions into the product. What does your performance of your product look like? Can you talk about the top speed, acceleration? Can these models be driven on highways?
Yes, they are road legal. These are motorcycle class products. The i300 and the i125 will be. The e-bike will be a product that can also be used on bicycle lanes, on roads, and also off-road as well.
Wonderful. Can you talk about the time to charge and the range? Does it vary by model?
Yes. With the i300, a standard charge takes two hours, but 20% to 80% with a fast charger will take 40 minutes.
OK. What's it going to cost you to acquire a walk-in customer versus an online customer?
Obviously, online, it depends really, I think, in terms of the approach that we take. If we work with existing very experienced retail partners, they already have a database of people who already buy two-wheelers and who buy electric two-wheelers. The people that come into a mobile mobility specialist retail environment are already very heavily qualified. Whereas finding new customers means we need to cast the net somewhat wider. It will differ according to the channels.
How much inventory do you need to maintain or accommodate demand?
Our intention from the outset was not to carry inventory, but to generate demand and then build, obviously, to customer request. That is not going to work in every situation because we will need to run ahead to be able to accommodate demand and meet growth as well. This is something we need to monitor and calculate per market.
Can you talk about the delivery time from order to delivery? What is that?
It'll depend on the market, where the factory is, and where the customer is. In the UK, for example, at the moment, the 50 bikes that we're producing from October, across October and November, we tend to deliver to customers across November and December.
OK. Perfect. That is all the questions we have for you. Do you have any closing remarks for our viewers today, David?
Only that this is a new team, new management team. We're moving fast. We have plans that are realistic. We're going to build the business step by step, product by product, and country by country.
Thank you so much for your time and presentation with us. We certainly hope to see you back on our conference again real soon.
Thank you.
All right, everyone. Stay with us. We'll be right back.