Zero Motorcycles will begin assembly in the Philippines this year

The FXE, an electric motorcycle from Zero Motorcycles considered perfect for the Asian market due to its size and price, could be one of the models to be assembled in the Philippines.

Photo courtesy of Zero Motorcycles

California’s Zero Motorcycles will soon be assembled in the Philippines.

The Santa Cruz, CA-based designer and manufacturer of electric motorcycles and electric powertrains has signed a deal with Integrated Micro-Electronics Inc. (IMI), an electronics manufacturing company based in Sta. Rosa, Laguna, Philippines, about 60 kilometers from the capital Manila.

As part of this new partnership, IMI will begin assembly Zero motorcycleselectric motorcycle models and other motorcycle parts at their facility in Laguna, Philippines, within this year. The actual timing has not yet been determined by sources at AC Industrials, said the target is the third quarter of 2023.

IMI will perform assembly in parallel with Zero’s facilities in Scotts Valley, California. This means partial and modular assembly of components and parts, as well as full assembly of motorcycles that are then sold locally or shipped to Zero’s customers and dealers worldwide, with a primary focus on the European and Asian markets.

“This partnership will be transformative for the Zero Motorcycles business. By expanding our manufacturing footprint into a new region, Zero Motorcycles can efficiently scale to meet the rapidly growing demand for our products and improve customer delivery and satisfaction in the fast-growing EV market,” said Sam Paschel, CEO of Zero Motorcycles in a statement.

Of all the potential partners considered, only IMI had the expertise in both electronics manufacturing and motorcycle assembly, all under one roof. Important to Zero Motorcycles is the fact that Ayala Corp. and its affiliates are deeply committed to sustainability, and the collaboration with Zero is expected to open up more potential synergies with AC Industrials in the future.

“IMI is thrilled to partner with Zero Motorcycles and help bring their innovative electric motorcycles to the world. This partnership aligns with our commitment to supporting companies in their growth and sustainability efforts while delivering high-quality manufacturing services,” said Arthur R. Tan, CEO of AC Industrials.

Entrance to the KAMMI factory in Laguna Photo by AC IndustrialS

IMI is part of Ayala Corp., AC Industrials, which in turn owns KTM Asia Motorcycle Manufacturing, Inc. (KAMMI) runs. As a result, the company has experience in assembling motorcycles. Recently it started building KTM motorcycles. In 2021, the company started production of the Husqvarna line of adventure bikes.

Since its inception, KAMMI has built more than 30,000 motorcycles at its Laguna Technopark Inc. plant. (LTI) in Sta. Rose, Lagoon. Last year it built more than 13,000 motorcycles, 80% of which were exported to China and other ASEAN countries.

IMI is part of the Ayala Group of Corporations in the Philippines, the largest corporate entity in the country that currently has interests in the automotive, motorcycle, telecommunications, renewable energy, energy, banking and finance, real estate, sustainability, and health and medical fields.

Mass production is expected to start as early as Q2 2023 as a turnkey program utilizing IMI’s current motorcycle assembly capability along with efforts to develop the localization of certain components and parts.

“We are delighted to partner with IMI and bring their electronics manufacturing and motorcycle assembly expertise to the Zero Motorcycles range,” concluded Paschel.

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