Cenntro Receives Order for Metro MR for the Japanese Market

Rhea-AI Summary

Cenntro (NASDAQ: CENN) has secured an order for 500 customized Metro MR electric vehicles specifically designed for the Japanese market. The order, backed by a bank letter of credit, will be delivered in the first quarter of 2025 through the company's manufacturing facility, Zhejiang Cenntro Machinery Co.,

The Metro MR vehicles are specially tailored to meet Japan's market requirements, particularly suited for densely populated cities like Tokyo and Osaka. CEO Peter Wang views this as a strategic milestone that could lead to expanded market share in Japan, a region known for its demanding quality and performance standards.

Positive

• Secured order for 500 customized Metro MR vehicles
• Order backed by bank letter of credit, demonstrating financial security
• Strategic entry into Japanese market with potential for expansion

Negative

• Delivery timeline extends to Q1 2025, indicating delayed revenue recognition

Insights

Financial Analyst

The 500 unit order for Metro MR vehicles represents a meaningful revenue opportunity for Cenntro, particularly given their 33M market cap. The secured bank letter of credit significantly de-risks this transaction and strengthens the company's Q1 2025 revenue visibility. The Japanese market entry is strategically important, as Japan's commercial EV segment has high barriers to entry and stringent quality requirements. Success here could validate Cenntro's product quality and potentially lead to follow-on orders. However, investors should note that while this order is positive, Cenntro needs substantially more volume to achieve sustainable profitability given their current market position and financial metrics. The customization for Japanese specifications demonstrates market adaptability but may impact margins due to specialized manufacturing requirements.

Market Research Analyst

Japan's commercial EV market presents a compelling growth opportunity, with the country's dense urban environments and strong environmental policies creating ideal conditions for electric utility vehicles. The Metro MR's specifications align well with Japan's last-mile delivery needs, particularly in megacities like Tokyo where maneuverability and zero emissions are crucial. This initial order could serve as a strategic beachhead, potentially leading to broader market penetration. The timing is opportune as Japan accelerates its transition to electric vehicles, with government incentives and corporate sustainability initiatives driving adoption. However, competition from established Japanese manufacturers and other global EV players remains intense. The deal's success in generating follow-on orders will largely depend on the vehicle's performance and reliability in real-world Japanese operating conditions.

500 Unit Order for Customized Metro MR Vehicles May Position Cenntro to Capitalize on Additional Opportunities in Key Market

FREEHOLD, N.J.--(BUSINESS WIRE)-- Cenntro Inc. (NASDAQ: CENN) (“Cenntro” or “the Company”), a pioneering electric commercial vehicle company with advanced, market-validated, and purpose-built vehicles, today announced its manufacturing facility, Zhejiang Cenntro Machinery Co., Ltd., secured an order for 500 customized Metro MR vehicles exclusively for the Japanese market. We believe this order highlights Cenntro’s commitment to delivering market-specific, high-value solutions, and our ability to meet the rigorous quality and performance standards expected by what we believe to be one of the world’s most discerning customer bases.

Metro MR for the Japanese Market (Photo: Business Wire)

We believe the Metro MR is uniquely tailored to the requirements of the Japanese market, reflecting a strategic move to penetrate and grow in a region renowned for its exacting expectations. The order is backed by a bank letter of credit, further demonstrating confidence in Cenntro’s operational and financial reliability. Delivery is scheduled for the first calendar quarter of 2025, which may position Cenntro to capitalize on additional opportunities in this key market.

“Our Metro MR is an ideal electric delivery vehicle for densely populated cities like Tokyo and Osaka,” said Peter Wang, CEO of Cenntro. “We see significant potential in Japan as a strong market for ultra-light electric utility vehicles. We view this as a pivotal milestone that not only reinforces our presence in Japan, but the sale may set the stage for additional orders and expanded market share,” concluded Wang.

Cenntro remains focused on leveraging its innovative capabilities to drive long-term shareholder value.

About Cenntro

Cenntro (NASDAQ: CENN) is a leading maker and provider of electric commercial vehicles (“ECVs”). Cenntro's purpose-built ECVs are designed to serve a variety of commercial applications inclusive of its line of class 1 to class 8 trucks. Cenntro is building a globalized supply-chain, as well as the manufacturing, distribution, and service capabilities for its innovative and reliable products. Cenntro continues to evolve its products capabilities through advanced battery, powertrain, and smart driving technologies. For more information, please visit Cenntro's website at: www.cenntroauto.com.

Forward-Looking Statements

This communication contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. Such statements may be, but need not be, identified by words such as "may," "believe," "anticipate," "could," "should," "intend," "plan," "will," "aim(s)," "can," "would," "expect(s)," "estimate(s)," "project(s)," "forecast(s)," "positioned," "approximately," "potential," "goal," "strategy," "outlook" and similar expressions. Examples of forward-looking statements include, among other things, statements regarding assembly and distribution capabilities, decentralized production, and fully digitalized autonomous driving solutions. All such forward-looking statements are based on management's current beliefs, expectations and assumptions, and are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed or implied in this communication. For additional risks and uncertainties that could impact Cenntro’s forward-looking statements, please see disclosures contained in Cenntro's public filings with the SEC, including the "Risk Factors" in Cenntro's Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 1, 2024 and which may be viewed at www.sec.gov.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250102032024/en/

Investor Relations Contact:

Chris Tyson

MZ North America

CENN@mzgroup.us

949-491-8235

Company Contact:

PR@cenntroauto.com

IR@cenntroauto.com

Source: Cenntro Inc.

FAQ

How many Metro MR vehicles did Cenntro (CENN) secure in its Japanese market order?

Cenntro secured an order for 500 customized Metro MR vehicles for the Japanese market.

When will Cenntro (CENN) deliver the Metro MR vehicles to Japan?

The delivery is scheduled for the first calendar quarter of 2025.

What financial backing supports Cenntro's (CENN) Japanese Metro MR order?

The order is backed by a bank letter of credit, demonstrating confidence in Cenntro's operational and financial reliability.

Which Japanese cities are targeted for Cenntro's (CENN) Metro MR vehicles?

The Metro MR vehicles are particularly suited for densely populated Japanese cities like Tokyo and Osaka.