Ni Hsin Group plans to expand its electric vehicle (EV) business by increasing electric two-wheeler assembly, offering contract manufacturing services to other manufacturers and entering overseas markets.

In a statement to Bursa Malaysia, the group said the move is aimed at establishing EVs as a new source of revenue, with plans to develop third-party assembly capabilities and expand its EV promotion, marketing and distribution activities.

"The business diversification plan is based on EV operations that have been carried out since 2021 through the Group's subsidiaries, namely Ni Hsin EV Tech and EVSend," it said.

Ni Hsin's EV business continued to record losses, reporting revenue of MYR 1.43 million (US$ 351,000) and a net loss of MYR 1.43 million for the financial year ended June 30th, 2026. The group expects growth in Malaysia's EV market to provide an opportunity to expand its business and establish another source of revenue.

Expand electric two-wheeler assembly operations

Ni Hsin operates an EV assembly plant in Seri Kembangan, Selangor, which assembles electric two-wheelers using semi-finished and complete components. Its models include the Ebixon Torq, Bold and Kruz, as well as the TC Max and CPX. The group also targets corporate customers, fleet operators and institutions, particularly companies involved in short-haul logistics and last-mile delivery operations.

It is also developing original equipment manufacturer (OEM) production capabilities to attract third-party EV manufacturers. In April 2026, Ni Hsin EV Tech entered into a contract manufacturing agreement with MARS Greentech to assemble several models of two-wheeled electric vehicles.

Target foreign markets

Ni Hsin is exploring an exclusive local assembly collaboration for the Surron electric two-wheeler with China-based Chongqing Qiulong Technology. It has also signed a memorandum of understanding with Apex Ventures (Labuan) Ltd to promote, market and distribute its products, including EVs, in overseas markets, with Türkiye and the Middle East identified as the initial target markets.

For the 18-month financial period ended June 30th, 2025, EV operations contributed 11.07% of the group's revenue.

Malaysia's EV market grew by 104.1% in 2025. The market is expected to grow by a further 59.9% in 2026 and see an increase representing a compound annual growth rate (CAGR) of 36.8% by 2030.

Ni Hsin said the diversification proposal faces risks including competition, changes in government incentives, rapid technological developments, dependence on third-party suppliers and partners, and the need to secure skilled personnel in the EV sector.

The proposal is not expected to have an immediate impact on the group's earnings, net assets or debt levels and will take effect only after shareholder approval at an extraordinary general meeting. M&A Securities acted as the lead adviser for the proposal.