London Electric Vehicle Company signs deal worth more than £44m to expand into Australia

  • London Electric Vehicle Company sets up 10-year distribution agreement in Australia
  • At least 1000 vehicles will be supplied in the first five years
  • Distribution deal covers all major cities in Australia and New Zealand

In March 2016 the London Electric Vehicle Company (LTC) signed a new 10-year distribution agreement worth more than £44 million with the newly-formed London Taxi (Aust) Limited.

The deal will grant London Taxi (Aust) Limited exclusive rights to sell and distribute LTC’s iconic London taxis throughout Australia and New Zealand. Australia alone currently has more than 21,000 licensed taxis on the road. The contract includes a minimum order of 1000 vehicles over the first five years of a 10-year agreement.

LTC’s Coventry facility will produce the first order of 200 TX4 taxis during 2016, before they are distributed across major cities in Australia.

Commenting on the deal, Peter Johansen, CEO of the London Electric Vehicle Company said:

Our vision is to see our iconic London taxis on the streets of all major cities around the world, and this agreement is another huge step forwards towards that goal. We have enjoyed a good relationship with our outgoing Australian distributors who have helped us to open up the Australian market and we wish them well. We now look forward to working with the new owners of London Taxi (Aust) Limited in the coming years as we build up the London taxi brand in cities across Australia and New Zealand.”

There are already 100 TX4s in Perth, Australia, which has proven to be a receptive market for the London Electric Vehicle Company’s products which offer unrivalled accessibility, emissions performance, durability, comfort and style.

London Taxi (Aust) Limited is a new venture, owned by Elgan Potter and Ross Prendergast.

Commenting on the deal, Elgan Potter, co-owner of London Taxi (Aust) Limited, said:

“Nothing symbolises a high quality professional taxi service like the London taxi, and so we’re delighted to have signed a new 10-year distribution agreement that will deliver hundreds of new TX4s into Australia and New Zealand over the coming years. LTC is an ambitious company with exciting future plans which bodes well for our future business development. Together, we look forward to raising standards in the taxi industry in Australia.”

The deal brings more positive news for the Coventry based manufacturer at a time when it’s investing £300m in product development and in the creation of a brand new research, development and production facility on Ansty Park, Coventry.