VKTR Strengthens B2G And B2B Commercial Electric Vehicle Services

JAKARTA - PT VKTR Mobility Technology Tbk (VKTR) has expanded its commercial electric vehicle client portfolio from the original only B2G (business to government) to B2B (business to business).

"In facing current challenges and market opportunities, the company has expanded its focus to the B2B sector, targeting industries that need vehicles for their needs, including mining hauling, plantation logistics, and log transportation," said VKTR President Director Gilarsi W. Setijono in a statement in Jakarta, quoted from Antara, Friday 8 March.

This effort is complemented by the manufacture of prototypes and promising product trials, indicating VKTR's commitment to innovation and operational excellence. Although the B2G sector remains an important part of the VKTR strategy, this diversification aims to reduce dependence on government purchases that can be influenced by political and economic factors.

The potential for electrification of commercial vehicles is very large, there are more than 6 million units of trucks and 260 thousand units of buses in Indonesia, with the electrification level of the two types of vehicles being less than 0.1 percent.

In addition, industrialization continues to be the company's strategic initiative to strengthen our position as a pioneer in the commercial electric vehicle sector, which is marked by the groundbreaking of the first Completion Knock Down (CKD)-based Commercial Electric Vehicle Facility in Indonesia on February 27, 2024. Located in Magelang, Central Java, this facility is a joint venture between our company and the Tri Sakti Karoseries, PT VKTR Sakti Industries (VKTS).

We recognize that, similar to the previous quarter, our sales performance of the electric vehicle segment (EV) continues to be influenced by the temporary delay in bookings from our B2G clients due to political events earlier this year. "Nevertheless, we emphasize that our backlog remains strong. VKTR remains committed to our mission to accelerate sustainable mobility and lead the electric vehicle market in this country," said Gilarsi.

VKTR believes that the company's strategic investment in the local manufacturing sector, the completion of CKD facilities in Magelang, and our diversification of electric mining trucks will contribute to our long-term success. Despite the short-term challenges, the company's strong order book and commitment to financial discipline put us in a good position in the future.

Gilarsi on that occasion announced a consolidated financial report for the financial year 2023. The company's consolidated financial statements recorded a net income of IDR 1.062 trillion, down slightly 0.93 percent compared to the previous year of IDR 1.071 trillion in 2022.

"This adjustment is largely due to a shift in bus purchases by the government sector, which is expected to recover in the next period," he added.

Total assets increased by 62 percent to IDR 1.668 trillion from IDR 1.033 trillion in the same period, most of which was caused by the receipt of funds from our initial public offering in mid-2023.

Meanwhile, total liabilities decreased by 31 percent to IDR 521 billion in 2023 from IDR 758 billion, mainly due to a significant decrease in total short-term liabilities.