Saietta Group PLC (AIM:SED) said it has received a £5mln order for 3,000 eDrive units to power urban delivery vehicles from US group AYRO.
The AIM-listed firm said the deal underpinned revenue expectations for the financial year to 31 March 2024.
The bespoke units will be made at Saietta’s plant in Sunderland with delivery in batches from the third quarter of this year through to the end of 2024.
Under the contract, Saietta will be the exclusive eDrive provider for a new model range, Vanish, to be built by AYRO, a NASDAQ-listed, US designer and manufacturer of electric, purpose-built vehicles for last-mile delivery
In a statement, Tom Wittenschlaeger, AYRO’s chief executive, commented: "Over the last year, we have been impressed by Saietta's innovation, flexibility and engineering pace. As we approach the start of production for the revolutionary new AYRO Vanish, Saietta is the natural eDrive partner for AYRO.”
Saietta said it is hopeful of securing follow-on orders once this contract is completed, noting current estimates are for the global final mile delivery market to grow almost 16% year-on-year to US$165bn by 2027.
It said it had worked closely with AYRO to design, engineer, test and validate the bespoke eDrive over the past twelve months.
Tony Gott, Saietta’s executive chairman, noted that as well as boosting its presence in the US market the contract confirms " there is clear demand for our products and services around the world in the fast-growing, final mile delivery vehicle sector".
He added: "The order is further validation of our strategy to extend our product offer to encompass complete eDrive systems and focus on large-scale opportunities with OEMs."
Saietta recently partnered with AVTEC to supply electric-powered vehicles in India. Motors and inverters will be supplied by Saietta with AVTEC providing the transmissions for the eDrives, which are optimised for light-duty applications including scooters, motorbikes, rickshaws and urban delivery vehicles.