For anyone who is a car enthusiast and lives in Singapore, you would probably know of the company EuroSports Global. And even if you don’t, there is no doubt that you would recognise one of the car brands that it distributes in Singapore – Lamborghini. It’s also the exclusive distributor for Alfa Romeo in Singapore.
Established in 1998, EuroSports Global is a leading luxury lifestyle company that specialises in the distribution of ultra-luxury automobiles and luxury automobiles and the provision of after-sales services. The company is the sole authorised dealer for Lamborghini in Singapore and Indonesia, the exclusive importer and distributor for Alfa Romeo in Singapore and the exclusive distributor for Touring Superleggera in Singapore, Malaysia, Brunei and Indonesia with non-exclusive distributorship in the PRC.
Besides its automobile distribution arm, the company also has a subsidiary – EuroSports Technologies, which is currently developing a next-generation, premium, smart electric motorcycle under the brand name Scorpio Electric. In fact, on 19 April 2021, the company announced that it would team up with Strides Transportation, a wholly-owned subsidiary of SMRT Road Holdings Ltd to develop, market and supply smart electric motorbikes in Singapore and the Asia Pacific Region.
EuroSports Global has been listed on the Singapore Exchange since January 2014. In this article, we take a look at EuroSports Global and bring to you some interesting insights that their management has shared.
In November 2020, EuroSports’ wholly-owned subsidiary EuroSports Technologies raised funds for the electric vehicle brand, Scorpio Electric. Can you tell us more about the plans for the business?
The Scorpio Electric brand is a smart electric vehicle company specialising in creating electric motorcycles with a focus on high performance. Part of the US$6.3 million funds raised will be used for the software and hardware development of Scorpio Electric’s first electric motorcycle. This will include numerous prototypes and preproduction builds that will undergo rigorous quality testing and checks to adhere to international standards.
We plan to stay focused on developing the home-grown, next-generation, high-performance electric motorbike – a first in Singapore history. The Group unveiled the X model prototype in January 2021. This will be the first of many prototypes that will pave the way for the series of Singapore’s first fully built electric motorcycles. The commencement of the sales is expected to begin by the end of 2021.
In the world we live in, going digital is seen as almost a requirement to remain a viable business. What are some ways the Group is “disrupting” itself?
Innovation has always been one of the things on the top of our mind. We are currently working with local government agencies and exploring opportunities to invest in the model factory and to showcase the talent that we have in technological advancement. This will help cement our position as one of the leading global players in the electric motorcycle industry.
The Group’s subsidiary, EuroSports Technologies, was established in end-2017 to develop the sustainable mobility solution under the Scorpio Electric brand. Scorpio Electric is creating a smart electric motorcycle with a focus on high performance, the first Singapore home-grown high performance smart electric motorcycle.
High performance transcends beyond technical specifications or engineering prowess. We have combined art with technology to create a high quality, smart electric motorcycle. We are redefining the concept of an electric vehicle, and to bring about a new era of transportation, being the disruptor in the premium EV market.
We differentiate our electric motorcycles by making it “smart” with the incorporation of artificial intelligence and data analytics, allowing them to be even more energy-efficient.
Do you see any changing consumer preferences due to Covid-19? How does the Group plan to ride on these trends?
The Group’s sales and operations were affected during the lockdown period, but we have noticed an increasing demand in the past couple of months as consumers diverge their spending to luxury automobiles. Moving ahead, we plan to actively seek new dealerships and expand not just in Singapore but also into the region. The pandemic has disrupted the way we work, live and interact with others and the world is more receptive to remote and virtual interactions. In light of this “new normal“, we effectively leveraged on digital platforms, including virtual showrooms and digital product launches, to reach out to new and existing customers.
Covid-19 also turned consumer’s attention to the need for greener and more sustainable technology. We believe that addressing tailpipe emissions is a step towards creating a greener future. Therefore, it was an opportune and timely move for the Group to advance into the EV industry
How do you think the EV market will evolve in Singapore and the region? How do you plan to tap on these trends?
The EV industry is a fragmented market, especially in Southeast Asia. Governments across the region are just beginning to invest in infrastructure and encouraging adoption for sustainable mobility. Thus, we believe that this is an opportune time for EuroSports to penetrate the EV industry.
As part of Singapore’s effort to encourage the adoption of green vehicles, the government relaxed rules on electric motorcycles in April 2020, allowing bikes with power ratings of more than 10kW to be on the roads. The Singapore government has also unveiled several measures in Budget 2020 to spur electric vehicle adoption, as well as plans to phase out the use of internal combustion engine vehicles by 2040. This also includes plans to deploy at least 60,000 EV charging points in public carparks and private premises by 2030, affirming the importance of the EV industry in the future.
Global EV sales have been increasing, mainly due to governments’ push for carbon removals, improved charging infrastructures and enhanced battery technologies. According to a McKinsey report, the market for two-wheel EVs (E2Ws) and three-wheel EVs (E3Ws) was valued at close to US$97 billion (or 4% of global auto sales), and by 2022, could reach US$150 billion. The electrification in the scooter and light-motorcycle segments is projected to accelerate, especially in emerging markets. Recently, the Group signed a Memorandum of Understanding with Strides Transportation, a wholly-owned subsidiary of SMRT Road Holdings, to develop, market and supply smart electric motorcycles for commercial and corporate clients.
Having a “moat” or a competitive advantage is something that many investors would naturally look for in companies they invest in. Can you share with us how EuroSports has a strong business advantage?
Our Group’s motto “Walk in as a customer, walk out as a friend” has brought us to where we are today. We have in-depth experience and expertise in the luxury automotive space, and we understand how to build brands and have the “personal touch” with our customers, now, in this case, friends!
We excel in customer delight and will continue to offer our customers exciting future products from our brand principles. This contributes to our high level of recurring sales.
We have also established strong and longstanding relationship with our various partners which include our existing automobile manufacturers, coupled with high customer satisfaction and proven track record place us in a favourable position to maintain the existing distributorships and/or dealerships with these automobile manufacturers.
We believe this advantage is unique to us. Tapping on this advantage, we have the opportunities to work with our various partners to expedite our business expansion in fragmented Southeast Asia.
Editor’s Note: Some answers for this article were extracted from the SGX 10 in 10 series published on 27 April 2021 and have been republished with permission. You can read more on EuroSports Global on the SGX website.
Trade SGX Stocks/ETFs with a Flat Processing Fee of Only S$8.80 on FSMOne.com
When commission rates go low, your investments can go high. Enjoy a flat processing fee of only S$8.80 when you trade SGX stocks and ETFs on FSMOne.com. You can also enjoy a variety of more than 50 ETFs with bite-sized investments (Regular Savings Plan). Click here to find out more!