Scooter maker Vmoto is launching a new joint venture company in China to meet the increasing demand for electric vehicles.
Vmoto will work with several Chinese firms to develop three- and four-wheeled vehicles.
It will invest up to $1.5 million in the new company during the first 12 months of operation and will own a 20 per cent stake.
The number of China-made electric three-wheeled vehicles, which are used by the elderly and disabled, as well as freight and delivery operators, has soared from 500,000 units in 2004 to about 12 million in 2014.
The market for four-wheeled low-speed electric cars is also growing as China tries to reduce pollution.
"The new joint venture will enable Vmoto to leverage market opportunities and capitalise on the booming electric vehicle market over the coming years," managing director Charles Chen said.
Shares in Vmoto were 0.2 of a cent higher at 4.1 cents at 1216 AEDT.
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