VivoPower's Tembo Signs Definitive Heads of Agreement with East Africa’s Leading Vehicle Assembler, Associated Vehicle Assemblers Ltd (AVA)
VivoPower International (Nasdaq: VVPR) announced that its subsidiary, Tembo e-LV, has signed a Definitive Heads of Agreement with Associated Vehicle Assemblers (AVA), East Africa's leading vehicle assembler. The 5-year agreement targets 200 vehicle conversions in the first year and 1,600 over five years across Kenya, Tanzania, and other East African nations.
AVA will distribute and locally assemble Tembo's 100% electric utility vehicle solutions, providing local maintenance and support capabilities. The partnership aims to serve various sectors including mining, agriculture, energy, safari, NGO, defence, and government. AVA's facilities can assemble 30,000 vehicles annually and currently work with major OEMs like Toyota, Fuso, and Volvo.
The agreement complements Tembo's existing partnership with ETC Group in Kenya and supports the region's transition to sustainable transportation. Tembo's next-generation EUV25 electric conversion kits feature reduced pricing due to supply chain improvements, leading to increased market interest.
VivoPower International (Nasdaq: VVPR) ha annunciato che la sua filiale, Tembo e-LV, ha firmato un Accordo Definitivo di Intesa con Associated Vehicle Assemblers (AVA), il principale assemblatore di veicoli dell'Africa orientale. L'accordo quinquennale prevede 200 conversioni di veicoli nel primo anno e 1.600 in cinque anni in Kenya, Tanzania e altri paesi dell'Africa orientale.
AVA distribuirà e assemblerà localmente le soluzioni per veicoli utilitari 100% elettrici di Tembo, fornendo capacità di manutenzione e supporto locali. La partnership mira a servire vari settori, tra cui minerario, agricoltura, energia, safari, ONG, difesa e governo. Le strutture di AVA possono assemblare 30.000 veicoli all'anno e attualmente collaborano con importanti OEM come Toyota, Fuso e Volvo.
L'accordo integra la partnership esistente di Tembo con ETC Group in Kenya e supporta la transizione della regione verso un trasporto sostenibile. I kit di conversione elettrica EUV25 di nuova generazione di Tembo presentano prezzi ridotti grazie ai miglioramenti nella catena di approvvigionamento, portando a un aumento dell'interesse di mercato.
VivoPower International (Nasdaq: VVPR) anunció que su subsidiaria, Tembo e-LV, ha firmado un Acuerdo Definitivo de Intención con Associated Vehicle Assemblers (AVA), el principal ensamblador de vehículos de África Oriental. El acuerdo de 5 años tiene como objetivo 200 conversiones de vehículos en el primer año y 1,600 en cinco años en Kenia, Tanzania y otras naciones de África Oriental.
AVA distribuirá y ensamblará localmente las soluciones de vehículos utilitarios 100% eléctricos de Tembo, proporcionando capacidades de mantenimiento y soporte locales. La asociación tiene como objetivo servir a varios sectores, incluidos minería, agricultura, energía, safari, ONG, defensa y gobierno. Las instalaciones de AVA pueden ensamblar 30,000 vehículos anualmente y actualmente trabajan con importantes OEM como Toyota, Fuso y Volvo.
El acuerdo complementa la asociación existente de Tembo con ETC Group en Kenia y apoya la transición de la región hacia un transporte sostenible. Los kits de conversión eléctrica de nueva generación EUV25 de Tembo presentan precios reducidos gracias a las mejoras en la cadena de suministro, lo que ha llevado a un aumento del interés en el mercado.
VivoPower International (Nasdaq: VVPR)는 자회사인 Tembo e-LV가 Associated Vehicle Assemblers (AVA)와 아프리카 동부의 주요 차량 조립업체와 최종 합의서를 체결했다고 발표했습니다. 5년 계약은 첫 해에 200대의 차량 개조를 목표로 하며, 5년 동안 케냐, 탄자니아 및 기타 동부 아프리카 국가에서 총 1,600대를 목표로 하고 있습니다.
AVA는 Tembo의 100% 전기 유틸리티 차량 솔루션을 배급하고 현지 조립하며, 현지 유지보수 및 지원 능력을 제공합니다. 이 파트너십은 광업, 농업, 에너지, 사파리, NGO, 방위 및 정부를 포함한 다양한 부문에 서비스를 제공하는 것을 목표로 하고 있습니다. AVA의 시설은 연간 30,000대의 차량을 조립할 수 있으며, 현재 Toyota, Fuso, Volvo와 같은 주요 OEM과 협력하고 있습니다.
이 계약은 케냐의 ETC Group과 Tembo의 기존 파트너십을 보완하며, 이 지역의 지속 가능한 교통으로의 전환을 지원합니다. Tembo의 차세대 EUV25 전기 개조 키트는 공급망 개선으로 인해 가격이 인하되어 시장의 관심이 증가하고 있습니다.
VivoPower International (Nasdaq: VVPR) a annoncé que sa filiale, Tembo e-LV, a signé un Accord Définitif de Principes avec Associated Vehicle Assemblers (AVA), le principal assembleur de véhicules d'Afrique de l'Est. L'accord de 5 ans vise 200 conversions de véhicules la première année et 1 600 sur cinq ans au Kenya, en Tanzanie et dans d'autres pays d'Afrique de l'Est.
AVA distribuera et assemblera localement les solutions de véhicules utilitaires 100 % électriques de Tembo, fournissant des capacités de maintenance et de support locales. Le partenariat vise à servir divers secteurs, notamment l'exploitation minière, l'agriculture, l'énergie, le safari, les ONG, la défense et le gouvernement. Les installations d'AVA peuvent assembler 30 000 véhicules par an et travaillent actuellement avec de grands OEM tels que Toyota, Fuso et Volvo.
L'accord complète le partenariat existant de Tembo avec le groupe ETC au Kenya et soutient la transition de la région vers un transport durable. Les kits de conversion électrique de nouvelle génération EUV25 de Tembo présentent des prix réduits grâce aux améliorations de la chaîne d'approvisionnement, entraînant un intérêt accru du marché.
VivoPower International (Nasdaq: VVPR) gab bekannt, dass ihre Tochtergesellschaft Tembo e-LV eine endgültige Absichtserklärung mit Associated Vehicle Assemblers (AVA), dem führenden Fahrzeugassembler in Ostafrika, unterzeichnet hat. Der 5-Jahres-Vertrag zielt im ersten Jahr auf 200 Fahrzeugkonversionen und insgesamt 1.600 in fünf Jahren in Kenia, Tansania und anderen ostafrikanischen Ländern ab.
AVA wird die 100% elektrischen Nutzfahrzeuglösungen von Tembo vertreiben und lokal montieren und lokale Wartungs- und Unterstützungsfähigkeiten bereitstellen. Die Partnerschaft zielt darauf ab, verschiedene Sektoren zu bedienen, darunter Bergbau, Landwirtschaft, Energie, Safari, NGOs, Verteidigung und Regierung. Die Einrichtungen von AVA können jährlich 30.000 Fahrzeuge montieren und arbeiten derzeit mit großen OEMs wie Toyota, Fuso und Volvo zusammen.
Die Vereinbarung ergänzt die bestehende Partnerschaft von Tembo mit der ETC Group in Kenia und unterstützt den Übergang der Region zu nachhaltigem Transport. Die nächste Generation der elektrischen Umbausätze EUV25 von Tembo bietet reduzierte Preise aufgrund von Verbesserungen in der Lieferkette, was zu einem gestiegenen Marktinteresse führt.
- Secured 5-year agreement for 1,600 vehicle conversions with East Africa's leading assembler
- Partnership provides access to market of 500+ million people
- Supply chain improvements led to reduced costs for EUV25 conversion kits
- Partner AVA has 30,000 vehicle annual assembly capacity
- Agreement includes local maintenance and support capabilities
- First-year target of 200 conversions represents only 0.67% of AVA's annual capacity
- Success depends on unproven market adoption in developing region
Insights
VivoPower's subsidiary Tembo has secured a strategic partnership with Associated Vehicle Assemblers (AVA), East Africa's leading vehicle assembler, representing a meaningful expansion into a market of over 500 million people. The 5-year agreement targets 200 vehicle conversions in the first year and 1,600 over the full term, providing VivoPower with quantifiable growth metrics and a foothold in the emerging African EV market.
For a micro-cap company with a market capitalization of just
Particularly promising is the mention of reduced pricing for Tembo's next-generation EUV25 kits driving increased customer interest. This suggests VivoPower has successfully optimized its supply chain to improve margins while enhancing market competitiveness. The partnership's provision for local maintenance and support capabilities addresses a critical barrier to EV adoption in emerging markets.
This agreement complements VivoPower's existing partnership with ETC Group in Kenya, indicating a methodical regional expansion strategy rather than opportunistic deal-making. The company appears to be executing on its stated strategy of partnering with established regional leaders to deliver electrification solutions.
This East African market entry represents a strategic pivot toward regions where electric vehicle adoption is still nascent but accelerating. East Africa presents unique advantages for EV implementation - less entrenched fossil fuel infrastructure, growing environmental consciousness, and increasing government-led sustainability initiatives. The region's combination of mining, agriculture, energy, and government sectors creates diverse revenue streams for VivoPower's utility-focused EV solutions.
AVA's selection of Tembo after an "expansive review" of competitors signals the company's technological competitiveness in international markets. More significantly, AVA cited Tembo's "cultural adaptability" alongside pricing and quality factors - a important differentiator for success in complex emerging markets.
The agreement's structure - empowering AVA for both distribution and local assembly - aligns with emerging market best practices by creating local economic value and employment while navigating potential import restrictions or tariffs. This approach typically accelerates market penetration while building political goodwill.
The timing aligns with Africa's growing focus on sustainable transportation solutions, supported by increasing international climate finance flowing into the continent. By establishing this partnership ahead of most competitors, VivoPower positions itself to benefit from first-mover advantages as electrification accelerates across East Africa. The local assembly component provides flexibility to adapt vehicle specifications to regional conditions and use cases, a critical success factor in markets with infrastructure challenges.
5-year agreement targeting 200 vehicle conversions in first year and 1,600 over five years
Provides local sales, service, and maintenance, further boosting Tembo’s position in the East African market, a population exceeding 500 million people
AVA’s vehicle assembly facilities have the capacity to assemble 30,000 vehicles per annum
AVA currently assembles vehicles for leading OEMs including Toyota, Fuso, Proto, Hino, Mahindra, Scania, Tata, Volvo and Daewoo
Established in 1975, AVA is the only assembler in the region to have achieved IATF16949 Certification
LONDON, March 18, 2025 (GLOBE NEWSWIRE) -- VivoPower International PLC (Nasdaq: VVPR) ("VivoPower" or the "Company") announced today that its subsidiary, Tembo e-LV ("Tembo"), has signed a Definitive Heads of Agreement (“Agreement”) with Associated Vehicle Assemblers Ltd. (“AVA”), East Africa’s market leading vehicle assembler.
The Agreement covers Kenya, Tanzania and other East African nations. With a population exceeding 500 million people, East Africa is the largest sub-region in Africa and home to the United Nations headquarters for Africa.
Under the terms of the Agreement, AVA is empowered to both distribute and locally assemble Tembo’s
The Agreement reflects both companies’ commitment to supporting Kenya’s transition to sustainable transportation and creating value and jobs in local economies across East Africa.
“We are seeing an acceleration in demand for electric vehicles across East Africa, from both government and private sector companies,” stated Matt Lloyd, CEO of AVA. “Having conducted an expansive review of electric conversion companies, we selected Tembo based on their experience, their cultural adaptability as well as the fact they have the most competitively priced products and solutions which also meet our quality and safety standards. Our team is excited to welcome Tembo’s engineers to Kenya in April 2025 as we kickstart the first assemblies for the Kenya market.”
“With the new and reduced pricing for our next generation EUV25 electric conversion kits, we have seen a surge in interest from new and existing customers and partners. This is a direct consequence of Tembo’s strategy to diversify and strengthen its supply chain which has translated into a significant reduction in costs, without sacrificing on quality and safety,” commented Matthew Nestor, Tembo’s Head of Partnerships and Sales. We are delighted to have been selected to partner with AVA, who are the pre-eminent vehicle assembler in East Africa.”
Kevin Chin, Executive Chairman and Chief Executive Officer of VivoPower, stated, "We are honoured to be partnering with AVA. This is part of a considered and patient strategy we have been executing upon globally to identify and build partnerships with long established and credible leaders in their respective markets who are genuinely aligned in terms of values and like us, have a long term commitment to deliver electrification solutions and transformation to entire nations."
About VivoPower
Established in 2014 and listed on Nasdaq since 2016, VivoPower is an award-winning global sustainable energy solutions B Corporation company focussed on electric solutions for off-road and on-road customised and ruggedised fleet applications as well as ancillary financing, charging, battery and microgrids solutions. VivoPower’s core purpose is to provide its customers with turnkey decarbonisation solutions that enable them to move toward net-zero carbon status. VivoPower has operations and personnel covering Australia, Canada, the Netherlands, the United Kingdom, the United States, the Philippines, and the United Arab Emirates.
About Tembo
Tembo electric utility vehicles (EUVs) are a
About AVA
Associated Vehicle Assemblers Ltd. (AVA) is East Africa’s leading vehicle assembler, with decades of experience in producing high-quality vehicles tailored to meet the unique needs of the region. Based in Mombasa, AVA has established itself as a trusted partner for global automotive brands, providing state-of-the-art assembly services and technical expertise. AVA’s commitment to quality, innovation, and sustainability has made it a key player in Kenya’s automotive industry, driving economic growth and supporting the transition to more sustainable transport solutions. As a pioneer in the region, AVA continues to lead the way in assembling vehicles that meet the highest global standards while catering to local market demands.
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FAQ
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