Quantum FOMM Limited (“QF”), a subsidiary of Quantum Solutions (“Quantum”) and a joint venture with FOMM Corporation (“FOMM”), announced on 31 January 2022 that it has entered into a Framework Agreement (“Agreement”) with FOMM for the manufacturing and distribution of FOMM One, FOMM’s first electric vehicle model and one of Japan’s few approved EV kei car on the road today. This Agreement solidifies Quantum’s entry into the EV sector, laying the groundwork to become a leader in quality, affordable, micro-EV.
Through this Agreement, FOMM grants QF the exclusive licensing rights for the manufacturing and sales of FOMM One, along with all necessary intellectual property rights, in the countries and regions of China (including Hong Kong, Macau and Taiwan), Malaysia, Singapore, Indonesia, and Latin America. In FOMM One’s existing markets of Japan and Thailand, QF will partner with existing dealers for distribution of the vehicles.
Based in Kanagawa Prefecture, FOMM was founded in 2013 by a team of auto engineers who had previously developed electric vehicles at Suzuki Motor Corporation. Over the years, FOMM developed its first micro, electric four-seater kei car model, FOMM One, to cater to the specific needs of the Japanese market.
Specifically, in Japan, kei means “light”, and these vehicles are known for their affordability and small engines. The category makes up about a third of new domestic automobile sales annually, as the vehicles are a popular means of transportation especially in rural areas, where public transport systems are sparse and roads are narrow. While FOMM One is geared towards general consumers in the kei car category, demand is also expected from local governments, commercial businesses such as logistics company, ride-shares and more. As the Japanese government pledges to decarbonize Japan by 2050 with plans to ban the sale of new gasoline-only vehicles by mid-2030’s, FOMM One is well positioned for market share growth in the Japanese car market.
Beyond Japan, Quantum and QF plans to expand its footprint to select ASEAN and Latin America cities where national and local governments are embracing affordable and sustainable mobility solutions in unprecedented ways. Compensation of such rights is 200 million JPY, as announced in the “Notification for Change in Use of Funds from 8th Series of Stock Acquisition Rights.” Quantum plans to raise 175 million JPY through the Series 8 Stock Acquisition Rights and allocate the remaining 25 million JPY from cash on hand.
About Quantum Solutions Limited (2338.T)
Quantum Solutions is a Tokyo Stock Exchange listed company engaged in the EV sector.
About Quantum FOMM Limited
Incorporated in Hong Kong, Quantum FOMM is a subsidiary of Quantum Solutions and a joint venture with FOMM Corporation. The joint venture is designated for EV business of Quantum.
About FOMM Corporation
Based in Kanagawa prefecture of Japan and established in 2013, FOMM is an R&D and design-oriented mobility company specializing in planning and developing compact mobility using innovative designs and technologies.
Topic: Press release summary