AYRO Inc. (NASDAQ: AYRO) dropped 1.8% after Karma Innovation and Customization Centre unveiled the first Club car Current cars in production as per the contract manufacturing agreement with AYRO.
AYRO and Karma Innovation producing electric vehicles in partnership
The companies are producing light-duty electric vehicles that will fill the deficit between small utility carts and full-sized trucks for cargo and low-speed logistic services in urban and campus environments. The production of the vehicles comes following a previously announced partnership between the companies.
Karma CEO Dr. Lance Zhou said, “Having the first of these vehicles roll off the line at our KICC facility is a great step forward in our relationship with AYRO and Club Car and will help us deliver on our Climate Pledge efforts to become net-zero by 2040. We look forward to growing our B2B business and delivering clean energy vehicles for other customers in the future”
Car sales slowing as the number of vehicles in dealerships declines
The revelation comes at the back of reports that US car sales that have been growing at a fast pace in Q2 showed signs of slowing in June. This was due to the dwindling number of vehicles in dealership lots.
In Q2, General Motors Co. (NYSE: GM) saw a 40% YoY increase in vehicle sales and the first quarter, and the sales only rose 10%. Likewise, Stellantis NV reported a 32% YoY sales increase in Q2. On the other hand, Volkswagen had its best first half, with US sales reaching almost half a center as it continues to manage tight supplies. Volkswagen has an inventory of 32,000 vehicles and expects to sell up to 30,000 in a month, according to its CEO, North American subsidiary Scott Keogh.