130,000 CAKE Bikes for China, Now Contractually Signed

The partnership between CAKE and Shanghai Forever enters the next phase with a binding contract for the Chinese market. Aside from Forever distributing CAKE’s standard range of products, a country-specific model is being designed and developed at the CAKE Stockholm HQs, hitting the Chinese market by H2 2024.

CAKE, the Swedish manufacturer of premium lightweight electric motorcycles, announces a meaningful progression in its partnership with Shanghai Forever. Following the mutual agreement signed earlier this spring, the partnership is now a firm contract. CAKE and Forever have initiated the development towards manufacturing and distributing the 130,000 bikes in accumulated sales by 2027.

This significant advancement is a milestone in CAKE’s ongoing strategic partnership strategy. This is particularly impactful within China—one of the most expansive and rapidly growing markets in the world.

“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.

The China-specific contract is signed between CAKE and the Shanghai-listed bike company Shanghai Forever, producing 6-7 million non-motorised 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.

“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 Shan, CEO of Shanghai Forever

As part of this next phase, CAKE’s current product line will be unveiled in Shanghai and across China, commencing in November 2023. Operations and logistics are already underway, with product shipments and the establishment of a CAKE marketing and product office at Forever’s headquarters in Shanghai.

CAKE continues to widen its distribution network globally, cementing partnerships in several key regions, including Europe, Asia, the Middle East, Australia, South America, and Africa.

130,000 CAKE bikes can reduce an estimated 90,000 tons of CO₂e per year in China during the use phase charged with the Chinese average grid—representing a zero emission reduction of 79% compared to today’s gasoline mopeds.

The emission reduction potential hinges on the electricity source used for charging; shifting toward renewable energy will amplify the savings substantially. Although China’s electricity grid leans heavily on coal, the efficiency of electric motors notably outperforms conventional internal combustion engines, reducing emissions compared to traditional gasoline mopeds.

As nations globally take actions to bolster the share of renewable energy, the emission reduction potential from electric vehicles will significantly escalate over time.