Zapp Electric Vehicles Group (ZAPP) investor relations material

Market opportunity and industry trends

• Urban congestion drives demand for two-wheelers, with global sales expected to grow from $118B in 2024 to $176B by 2032, and EV share projected to rise by at least 30% in that period.

• E-bikes represent a high-growth segment, with more units sold globally than electric motorcycles and scooters combined.

• Asia accounts for about 60% of global two-wheeler sales, with government policies in markets like Vietnam accelerating EV adoption.

• European markets, especially France and the UK, are initial targets due to high EV penetration and supportive legislation.

• Urban riders prioritize affordability, flexible charging, and design, shaping product development and market entry strategies.

Product strategy and development

• The i300, a design-award-winning electric scooter, is in limited production in the UK, featuring portable batteries chargeable from standard outlets.

• Plans include launching a more affordable i125 for Asian markets and an e-bike for urban mobility, with the e-bike and expanded i300 sales targeted for 2026 and i125 for 2027.

• The product portfolio is structured for a range of price points: i300 at £6,000, i125 at £4,000, and e-bike at £2,000.

• Design-led approach aims to differentiate through aesthetics, ride quality, and flexible battery solutions.

• The "Factory-in-a-Box" concept allows for cost-effective facility setup, supporting scalable production.

Go-to-market and sales model

• Hybrid sales model combines direct-to-consumer e-commerce, online resellers, influencers, and retail partnerships, such as Selfridges in London.

• Experiential marketing, including test rides and high-profile events, is prioritized to drive demand.

• Expansion into Asia will leverage local assembly and supplier partnerships to maximize profitability and market proximity.

• Regulatory approvals are in place for the i300 in the EU, supporting broader European rollout.

• Target customers are urban dwellers seeking design, convenience, and flexible charging for short city rides.