Ni Hsin Group Bhd (KL: NI HSIN) managing director Khoo Chee Kong did not originally set out to conquer the electric two-wheeler market in Malaysia. The company, which was incorporated in 1989, is a producer of stainless-steel consumer products such as cookware and convex mirrors.
In 2020, Khoo wanted to diversify the company’s revenue stream. “We had begun selling coffee capsules made from Arabica coffee beans, and coffee machines under the BlackBixon brand. Where there is coffee, there had to be water. Why not put coffee machines on an electric bike so we could deliver fresh, hot coffee to the customer’s doorstep?
“We tried to use an internal combustion engine and retrofit it with a coffee machine and battery to power the machine. It became evident that this could not work. Then I thought: if we could do an e-motorbike with the idea of using an electric power system,” says Khoo.
He added that coffee was the key motivator behind the move into the EV business. The next step was to find a company that could manufacture these ebikes with a coffee machine at the back. Khoo contacted some of the world’s top manufacturers in Taiwan and China. Dongguan TailG Motor Vehicle Co Ltd in China, one of the top five producers in China, expressed interest.
“Halfway through the process, TailG asked us, ‘Why don’t you do this for personal use as well?’ I said, ‘Alright, we can try,’ and that’s how we brought the bikes to market,” Khoo says. We applied for the manufacturing, assembly, and other relevant licences, and launched them in 2022,” says Khoo.
That was also how Ni Hsin EV Tech Sdn Bhd, a subsidiary of Nih Sin Group, began selling ebikes using TailG’s technology but assembled in Malaysia. These bikes are the Ebixon Bold and Ebixon Torq, a motorcycle and electric scooter, respectively.
Ni Hsin also plans to assemble high-powered ebikes in collaboration with another China company, Nanjing Golden Dragon Bus Co Ltd, in the future. “Initially, our target market was manufacturers, logistics businesses—to-business segment, which consists of commercial industries such as the government and government-linked companies as well as county and city councils. We’ve had encouraging feedback,” he says.
Among the first corporate customers to purchase Ni Hsin’s EVs are Ikano, Ikea, Sunway, and Shah Alam City Corp.
“Our scheme is either lease or outright purchase,” says Khoo.
The company aims to sell 25 dealers to the public. The bikes range from RM9,000 to RM25,000 for a high-end bike. With the government’s incentives for these bikes, Khoo believes that the adoption rate will increase.
“Electric two-wheelers are easier to market than EVs because for the latter, you need a lot of charging infrastructure. That’s why the government came up with the incentive of RM2,400 for the B40 group (annual income less than RM100,000 per household),” says Khoo, since these bikes can be charged from a normal household socket.
“The Ebixon bikes are of high specification and what consumers demand. The battery can be removed, and charged at home, one battery can power the Ebixon Bold motorbike for about 120km and the Ebixon Torq for 100km.
“TailG sells affordable bikes in China and has a range of nine models, including higher-end concept range.
“Since TailG bikes are of high specification, the battery is bigger and has more power, so the cost of the batteries is both what drives the cost up. The specifications of these are more in line with higher specification than the cheaper ones you find in the market.”
The bikes are currently assembled in Malaysia. Khoo plans to eventually manufacture them here too.
“We acquired the technical knowledge through the transfer of technology from China. They sent a senior engineer to train us on how to assemble and build these bikes.
“Learning to assemble the ebikes has meaning when we sell probably 20,000 to 30,000 units a year in Malaysia with an annual replacement rate.
“Components from local suppliers,” he says.
There’s demand in the tourism industry for these ebikes, with conversations with McKinsey & Co in 2021. The electrification of transport should continue at least at 15% a year, with electric scooters comprising the biggest share of the market.
Moving forward, Ni Hsin’s approach will focus on the EV industry in Southeast Asia, namely Malaysia. By investing in manufacturing for logistics businesses, councils, government and city councils, Malaysia can pave the way for a sustainable and innovative EV ecosystem,” says Khoo.
Khoo is confident that ebikes are the future for Malaysia and beyond.
“EVs already see a ready market in the delivery services last-mile transportation and courier segments.
“Vietnam, Thailand, and Indonesia are already using e-scooters, so why not Malaysia? The challenge is the price, which is too high for the B40 group, who make up the majority of Malaysians.
“We will continue to lobby the government to give out subsidies, everyone can afford high-end ebikes. If they can afford it, they will switch to ebikes,” he says.