Gogoro, Castrol expand cooperation in Vietnam

Electric scooter brand and battery swapping services provider Gogoro Inc (睿能創意) has decided to expand its cooperation with British lubricant maker Castrol Holdings International Ltd in the Vietnamese market.Gogoro told the Central News Agency in a phone interview yesterday that it is planning to launch e-scooter models catering to potential Vietnamese riders this year. The company said it would authorize Castrol to market and sell these models in Vietnam, while Gogoro would assist with design and technologies used in new models, it said. The partnership followed an agreement signed by the two companies in February last year to set up a joint venture, leveraging the British company’s knowledge of the Vietnamese market. Castrol has been in the Vietnamese market for decades, Gogoro said. Since the February agreement was signed, Gogoro and Castrol have launched a pilot e-scooter logistics team in small areas in Vietnam and collected first-hand information from clients. With 3 million two-wheel vehicle sales every year, Vietnam has great growth potential for Gogoro. Furthermore, starting from July 1, Vietnam would ban gasoline-powered motorcycles from entering downtown Hanoi as part of its efforts to cut carbon emissions and improve air quality. Ho Chi Minh City is expected to follow, making the Vietnamese market more attractive to Gogoro. Gogoro said Taiwan’s motorcycle market was affected by a slower global economy, with many consumers turning more cautious about their consumption of big-ticket items such as motorcycles. In Taiwan, e-scooter sales fell 37.64 percent from a year earlier to 49,228 units last year, including 28,176 Gogoro units. Gogoro took a 3.98 percent share of the local motorcycle market, where 708,392 units were sold last year. Gogoro chief executive officer Henry Chiang (姜家煒) said the brand is planning to unveil three new e-scooter models this year, and develop more advanced and competitive batteries to help the company’s energy business break even this year. Chiang said Gogoro would continue to work hard to allow its energy service operations to create free cash flows next year and also aims for its vehicle business to break even in 2028. In the first nine months of last year, Gogoro incurred US$60.03 million in net loss, compared with US$51.43 million in net loss a year earlier.