Hello and welcome to Virtual Investor Conferences. On behalf of OTC Markets, we're very pleased you have joined us for our quarterly Small Cap Growth Conference. Our next presentation of the day is from Zapp Electric Vehicles. Please note you may submit questions for the presenter in the box to the left of the slides. You can also view a company's availability for a one on one meeting by clicking Book a Meeting in the top toolbar. At this point, I'm very pleased to welcome David McIntyre, Chief Executive Officer of Zapp Electric Vehicles, which trades on the OTCQB Venture Market under the symbol ZAPPF. Welcome David.
Thank you, and yes, I'm David McIntyre, the new CEO of Zapp Electric Vehicles, and this is a great opportunity to present the new Zapp under new management. We're on a mission to electrify personal urban mobility, and there's so much potential for this company and what we're trying to build. The two pages of disclaimers apply to everything I'll be covering today, and of course there is more information in our filings with the SEC, so now let's get started with the presentation.
As a starting point, it is worth highlighting the urban congestion is not unique to any part of the world and we think this slide demonstrates why the two-wheeler market is already large and still has significant room for growth. Most people in the U.S. are probably more accustomed to seeing streets full of cars. Outside the U.S. the transport mix is very different and I've worked with European brands in Asia for more than 20 years, so I've seen firsthand how important two-wheelers are in urban environments.
The Zapp i300 was designed for personal mobility in urban settings. We think we are developing the right products at a time when more customers are demanding to go electric on two wheels and electrification on two wheels makes so much more sense than cars which often carry hundreds of kilos of batteries for excess range and are reliant on dedicated charging infrastructure of one sort or another.
I believe Zapp is a challenger brand and I want to unlock that potential. Our first product, i300, has won nine design awards and the removable portable batteries can be charged from any standard wall socket, so 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 driving 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 started a limited production run the Zapp i300 Oxford Street Edition, which is now being built at our facility in the U.K., and most importantly, we are prioritizing getting these into the hands of customers. To do that, we are focusing on experiential marketing to drive demand. In my experience, there is no substitute for getting customers to test ride our product.
Longer term, we plan to expand Zapp's product lineup into additional high -growth segments. This includes an additional two-wheeler that will be more affordable for the Asian markets and also an e-bike that doesn't require a license to ride. We think we have the right plan to achieve our goals. Demonstrating product market fit through 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 it's growing. There were sales of $118 billion in 2024 and this is expected to increase to $176 billion by 2032. We anticipate more people will transition to electric vehicles. The EV share of the market is expected to increase at least 30% over that period. Important to note, these figures do not include electric bicycles, and more e-bikes are sold globally than electric motorcycles and scooters combined, so e-bikes are another high-growth segment for us to reach. Now let's talk in more detail about sales globally of motorcycles and scooters.
As I mentioned earlier, relatively few of these two-wheelers are sold in the U.S. and this is because riding two-wheelers is more of a leisure activity in North America, which is reflected in the types of two-wheelers and the average retail price. Compared to the U.S. 3x more two-wheelers are sold in Europe. We're anyway a British brand, so we plan to start selling first in Europe. But around 60% of all motorcycles and scooters sold globally are sold in India and Southeast Asia. So our opportunity to scale the business is to launch our expanded product lineup in these markets.
If we look in more detail at the largest markets for two-wheelers in Europe. Since we are a British brand, our first sales efforts are in the U.K., even though it is a smaller market. Unsurprisingly, more two-wheelers are sold in Southern Europe. And interestingly, France has the highest EV penetration. So this would be the logical second market for us to commence sales of i300 in 2026. Keep in mind, EV unit sales presented on this slide do not include e-bikes. Significantly more e-bikes are sold in Europe. For example, there are about 4,000 EV motorcycle and scooters sold in the U.K. in 2024, while there were around 146,000 e-bikes sold in the U.K. that year. In parts of London, bikes on the road outnumber cars two to one.
Important to mention that another driver of EV adoption in Europe is legislation. Historically, there have been financial incentives to promote EV adoption. Now more cities are implementing emission restrictions around gasoline vehicles. But by far the biggest two-wheeler opportunity for us is in Asia. In fact, around 60% of all two-wheelers sold worldwide are sold in India and Southeast Asia. And EV adoption is already higher in some countries. But we know also that price is a significant factor in buying decisions. So this means our expanded product lineup is an important part of scaling the business.
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 experience to the team from his time with Dyson and Pure Electric, and Tom and I have recently traveled in Vietnam where we assessed the market opportunity for i125 in Southeast Asia. Even though our products are designed for urban areas, we know that riders in these markets want to change batteries less frequently.
Since price is a significant factor in buying decisions, we want to introduce a product that retains our brand's bold design and convenient battery solution while making it more affordable for riders that may not need highest performance specifications. In addition to i125, we know that for some customers an electric bicycle is their preferred solution for urban mobility, and this is because many cities have already incorporated an extensive bike lane network.
A license and a helmet are not required, and it provides more flexibility for both on- and off-road use. This makes e-bikes another high-growth segment. As mentioned previously, 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 an exciting e-bike providing another entry point into the Zapp brand.
So with this expanded product portfolio, we believe that we have the right strategy to meet the needs of urban riders. It provides for a range of price points to improve affordability and it also acknowledges different requirements for vehicle specification and it addresses more variation in rider lifestyle globally. Now let's go through 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 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're adopting a hybrid sales model so we can sell direct to customer via our e-commerce platform. But we can also expand the reach of our e-commerce platform by working with online resellers and influencers. And we're also continuing to sign up retail stores that specialize in mobility solutions.
For example, we recently partnered with Smartech to display i300 in the bike shop inside Selfridges in London. We're also currently generating leads from high profile events in the U.K. and following up on these requests for test rides. Beyond the U.K., this portfolio of products better positions Zapp to meet the needs of more people in more countries. And together this gives us an opportunity to build a world-renowned electric vehicle brand on two wheels. So 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 U.K.
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 brands. And we're committed to getting bikes on the road to realize Zapp's full potential. That's our presentation for today and I look forward to taking your questions.
Okay, so first question for today? Why is now the right time for Zapp to expand its product lineup?
Thank you. Good question. i300 is our launch product and has won nine design awards. Now we need to get i300 in the hands of customers starting in the U.K., but we think the addition of a more affordable i125 will bring volume to scale our business in Asia, where more two -wheelers are sold. It would also meet the needs of more people in more countries in Europe. Now, e-bikes is another high -growth segment and we think this will also introduce more riders to the Zapp brand. So we think this is the right strategy to build a business and not just a brand.
Okay, can you talk a little bit about what led you to step into the role of new CEO of Zapp?
Thank you. Well, I've been in the automotive industry for 30 years with global premium and luxury brands and this included time in Latin America as well as the last 20 years in Asia. So I've seen how important two-wheelers are in the transport mix, especially in emerging markets. And I think Zapp has the right products and the right strategy. And also I, you know, I bring a global perspective and deep experience of growing European brands, especially in emerging markets, which I think is the biggest opportunity for Zapp.
Okay, this one was touched on a bit in the presentation, but please update on the company's liquidity situation and CapEx needs and working capital needs for the next 12- 18 months.
Yeah, sure. Previously we have. Highlighted a need of $5 million, but our strategy has changed since then. So additional capital would be required to roll out the full product portfolio. I'd add that this is significantly less than what a four-wheel company would require. With our what we call Factory -in -a -Box concept, we talk about budgets in the hundreds of thousands rather than hundreds of millions to set up a new facility, for example. I think this is another reason we think electrification makes much more sense on two wheels.
Okay, and this great segue you talked about the facility, what is the current production capacity in the U.K.? How much capacity could you add over the next 12 months within the current capital on hand?
We're focused now on building 50 bikes in the U.K. as a limited production run. We'll be looking to expand capacity to meet requirements across Europe as outlined earlier in the presentation.
Okay, given the premium pricing in Europe compared to Asia, how does Zapp plan to balance the affordability and brand positioning across these distinct markets?
Well. It's a good question. We know that so the i300 is a premium positioned. Product and w e believe that by expanding into another price segment with the i125, but by then expanding with the e-bike into a completely new segment that allows us a balanced portfolio to grow the business going forward. And we talk about a 2-4-6 S trategy. So this is obviously in pounds for the U.K. Where the i300 is around GBP 6,000, the i125 would be around GBP 4,000 and the e-bike would be around GBP 2,000.
Okay. So the presentation covered growth in the two-wheeler markets, particularly in Asia. How is that prioritizing which markets within Asia to enter first and is there any particular criteria to guide that decision?
Good question. I think I outlined in the presentation earlier that Tom Briscoe and I were in Vietnam recently. Vietnam is itself a very exciting market. A large two-wheeler market. What is interesting is the government policy which is. Driving EV conversion, EV adoption in Hanoi where internal combustion engine two-wheelers will be banned from Zone 1 in the second half of 2026, and also in Ho Chi Minh City where there are policies to take 400,000 internal combustion engine two-wheelers off the road by 2027. So l ogically, a market which is of a significant size and has proactive government policy for EV adoption would be a good starting point.
So we aim to potentially start in Vietnam, expand across ASEAN using Vietnam as a base, and then we'll be looking to enter the India market at some point in the future.
Okay, how does Zapp view the competitive dynamics against the established e-scooters and EV brands, particularly in Asia where penetration is already higher?
I think it's a good question. I mean, we are a challenger brand, so we're a new player in the market. We blend modern design with dynamic performance. The i300 was tailored for the urban mobility use case, so it's designed to be easier and fun to ride in the city. More expensive brands have also been successful in many markets. And for example, with their popularity in countries like France, they have shown that there is demand for a premium EV product. As I said earlier, aside from the i300, our plan to expand the product lineup will provide more options for different riders at different price points and in different markets.
Okay, would you give us an update on regulatory approvals to sell i300 in the U.K. and the EU?
Yes, so we already have the. EU Whole Vehicle Type Approval for i300 in Europe. But we're focused on building our limited edition run of the Oxford Street Edition in the UK and then we'll look to expand across into other European markets in 2026 using the EU type approval, which we already have.
Okay, how does the removable portable battery system compare to mainstream fixed battery competitors?
We believe that this is a solution to. The urban rider who doesn't necessarily want to plug in his bike. He doesn't want to have a large removable battery. And what we have is two small removable battery packs that can be used together or separately. And together they can be used in sequence or in parallel. This offers the opportunity for the rider to. D rive to work, ride to work, ride to home, charge the battery at a coffee shop at his office, leave one battery in the bike if he wishes to do so, and then just charge the other one, so we believe that we have a solution that takes away the range anxiety because we have a small removable batteries and we have quick charging, so it allows for the customer to use the bike as he wishes and charge it as he wishes as well.
Okay, question on the hybrid sales model, is there a difference in margins between those channels, and which do you expect higher volumes from?
I guess it depends, you know, when originally the. Under previous management, the plan was for. A purely direct to customer model for sales and after sales, but that doesn't work in every market. Other brands also in four wheels as well have seen that going purely direct to customer can impact. Volumes and also profitability. So we're adopting a hybrid sales model where we will use retail outlets such as Selfridges, we'll use authorized resellers. But where it makes sense, we will use. Distributors and dealers as well, so there will be a blend of markets and a blend of margins and a blend of structures as well. But all focused on maximizing the volume but also the profitability.
Okay, maybe can you talk a little bit about who Zapp sees as the target customer?
The target customer for Zapp is the urbanite, the urban dweller. So o ur bike, the i300 is obviously design led. It has very flexible battery solution. It has a range of around 42 km, 25 mi. It's aimed at short rides, quick charging and people who live in the city rather than, you know, long distance commuters. It's people who are design oriented. They want something that looks great, they want something that rides great because we have very low center of gravity, we have powerful brakes. So it looks good, it rides great and it offers a flexible charging solution for the, for the city dweller.
Okay, for the Asian market, would you manufacture in Asia? You mentioned Vietnam as a target market a nyway.
We are exploring opportunities to do so to maximize the profitability and just where it makes sense to be close to the market and close to the volume opportunity. So we are in active discussions with potential suppliers, but also assembly partners in Asia as well as in Europe.
Okay. I think we have time for maybe just one last one. The i300. Design. Design has received multiple awards. How do these design advantages translate into measurable commercial differentiation such as manufacturing cost reductions or customer retention?
So design is what attracts people to the product initially. So, you know, and great design allows an element of premium positioning which allows then also potentially higher or healthier margins. You know, I come from premium and luxury. Brands for all my career and you know, if you have a great design. People will come to you, and it's easy to get people through the door to convert to sales or to the website to convert to sales. So for me, design is, i s important in terms of efficiency of marketing spend because design attracts people, but also in terms of potential profitability, because you can position the product in a premium position in whatever segment you're operating.
Okay, great. So we're just about out of time. Any last closing words?
No. Thank you for listening today. And we'd be happy to have any individual conversations about Zapp and our business. Thank you.