- CAKE is partnering with Shanghai Forever to produce 130,000 electric bikes in China by 2027.
- This initiative aims to reduce 90,000 tons of carbon dioxide emissions annually in China.
- CAKE is also expanding globally, seeking partnerships in several regions.
Swedish electric motorcycle and bicycle manufacturer, CAKE, just signed a contract with China-based Shanghai Forever to produce 130,000 bikes for sale in China by 2027. This follows an initial agreement in early spring and has now culminated in a binding contract focused on the Chinese market.
“The transformation from a firm term sheet to a final contract signed in ink is an important milestone. It amplifies our capability to roll out high-quality, long-lasting vehicles and to influence the electric wave in China further. With Forever, we can inspire millions through the CAKE spectrum of purpose, innovation, performance and high quality, catering for product longevity and a greener environment”. States Stefan Ytterborn, Founder and CEO of CAKE.
Expanding Horizons: Shanghai Forever’s Vision for Green Transportation with CAKE
The China-specific contract is signed between CAKE and the Shanghai-listed bike company Shanghai Forever, producing 6-7 million non-motorized units yearly. Aside from their commitment to the CAKE product line, a China-specific model is being developed to be launched during H2 2024, reaching 130K units in 3 years from the launch date.
Chen Shan, CEO of Shanghai Forever, also shared his enthusiasm about the partnership, noting the vast opportunities in the Chinese market for green transportation solutions. He believes that CAKE’s technology and user-focused design will be key in capturing this emerging market segment.
“Going from a letter of intent to an actual deal is amazing. The Chinese market is huge and filled with opportunities, especially in developing green energy transportation solutions. We believe that with the technology and user/environment-focused design language of CAKE bikes, we can tap into this new frontier for growth truly. We’re ready, and we can’t wait to show everyone what we’ve got planned,” says Chen, CEO of Shanghai Forever.
CAKE’s Global Green Mission: Transforming Transportation and Reducing Carbon Footprint
The partnership kicked off with the unveiling of CAKE’s current product line in Shanghai and across China, starting in November 2023. This involved logistical preparations, such as product shipments and setting up a CAKE marketing and product office in Shanghai.
CAKE’s expansion doesn’t stop in China. The company is actively broadening its distribution network worldwide, establishing partnerships in Europe, Asia, the Middle East, Australia, South America, and Africa.
The environmental impact of this expansion is significant. It’s estimated that 130,000 CAKE bikes in China can reduce around 90,000 tons of CO₂e annually, assuming they are charged using China’s current energy mix. This represents a 79% reduction in emissions compared to traditional gasoline-powered mopeds. The potential for further reductions is even greater if the electricity used for charging shifts towards renewable sources, given China’s heavy reliance on coal and the superior efficiency of electric motors over internal combustion engines.
As the global focus on renewable energy intensifies, the emissions reduction potential of electric vehicles like those offered by CAKE is expected to increase significantly.
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