Woks to Wheels: Ni Hsin’s Bold Pivot into the EV Arena

Cookware maker Ni Hsin Group Bhd (KL:NIHSIN) said it is seeking to diversify its electric vehicle (EV) business beyond electric motorcycles, signaling a strategic pivot that aims to transform the company from a traditional kitchenware manufacturer into a broader mobility solutions provider.

In a bourse filing on Tuesday, the group said it has been involved in the electric motorcycle business, including assembly and distribution, since 2021 through its subsidiary Ni Hsin EV Tech Sdn Bhd. This initial foray into the EV sector was seen as a tentative step toward modernization, leveraging the group’s existing manufacturing expertise to enter a high-growth industry. Its EV portfolio includes the EBIXON TORQ, BOLD, and KRUZ models, designed for urban commuting, as well as the TC Max and CPX models, which cater to users seeking higher performance and range. These models have established a foothold in the local market, particularly among gig economy workers and eco-conscious consumers looking for affordable last-mile transportation solutions.

It currently operates an EV assembly facility in Seri Kembangan, near Kuala Lumpur, where it assembles motorcycles using semi-knocked-down (SKD) and completely kno (CKD) components supplied by its business partners. This assembly model allows Ni Hsin to maintain lower capital expenditure while gaining technical know-how in EV architecture, battery management systems, and motor integration. The facility serves as a testing ground for quality control and supply chain management, providing the foundational experience necessary for more complex manufacturing endeavors.

Ni Hsin plans to expand its EV business through partnerships, product diversification, contract manufacturing, and original equipment manufacturer (OEM) assembly, while broadening its customer base and market reach. The move toward OEM assembly is particularly significant, as it positions Ni Hsin not just as a brand owner, but as a manufacturing hub for other international EV players looking to establish a presence in Southeast Asia without building their own factories. By offering contract manufacturing services, the group hopes to utilize its idle capacity and generate steady revenue streams that are less dependent on consumer sentiment toward its own branded products.

The group also plans to expand beyond electric motorcycles targeted at urban commuters and into other EV segments, including electric off-road motorcycles. This diversification is driven by the growing demand for recreational EVs and specialized vehicles for agriculture, mining, and plantation sectors in Malaysia and the wider region. Electric off-road vehicles offer distinct advantages in terms of torque, low maintenance, and environmental compliance, making them attractive to corporate clients in industries that are increasingly under pressure to reduce their carbon footprints.

It is also seeking to grow its customer base to include corporate, fleet and institutional customers, while expanding its marketing and distribution network. Unlike individual consumers, corporate clients offer larger order volumes and longer-term service contracts, which can provide greater revenue stability. Ni Hsin is currently in discussions with several logistics companies and government-linked entities to supply electric fleets for delivery and patrol services. Expanding the distribution network will involve partnering with established automotive dealerships and service centers across Peninsular Malaysia and East Malaysia, ensuring that after-sales support and spare parts availability keep pace with sales growth.

For the financial year ended June 30, 2026, Ni Hsin's EV business generated revenue of about RM1.43 million as it recorded a loss after tax of about RM1.43 million. The break-even nature of the revenue and loss figures highlights the early-stage challenges of the venture, including high initial setup costs, marketing expenses, and the competitive pricing pressure in the entry-level EV motorcycle segment. However, management views these losses as investment in future capacity and brand recognition, expecting economies of scale to kick in as production volumes increase and diversification efforts take hold.

Shareholders will vote on the proposed diversification at an extraordinary general meeting to be convened. The proposal requires approval because it represents a significant departure from the group’s core competency in cookware and metal fabrication, involving new risks related to technology obsolescence, regulatory changes in the EV sector, and intense competition from established automotive manufacturers. M&A Securities Holdings Bhd has been appointed as the principal adviser for the proposal, tasked with ensuring that the transition is structured in a way that protects shareholder value and provides clear milestones for performance evaluation.

Shares of Ni Hsin settled half a sen or 1.7% lower at 29 sen on Tuesday, giving the group a market capitalisation of RM181.3 million. The slight dip in share price reflects investor caution regarding the execution risks of the diversification plan, as well as broader market sentiment toward small-cap stocks undergoing major strategic shifts. Analysts note that while the EV sector offers high growth potential, it is also capital-intensive and subject to rapid technological change. Success will depend on Ni Hsin’s ability to secure reliable partners, manage its cash flow effectively, and deliver products that meet the evolving needs of both individual and corporate customers. Despite the short-term volatility, the long-term vision of becoming a key player in the regional EV ecosystem remains a compelling narrative for those willing to bet on the group’s adaptability and manufacturing heritage.