(Yicai) May 21 -- IAT Automobile Technology said it has received an order for parts that convert heavy-duty fuel trucks into electric vehicles from a unit of Japanese logistics firm Doshin Holdings in a deal that is expected to bring total revenue of about JPY6.8 billion (USD47.3 million). 

The Chinese new energy vehicle designer will develop and supply EV conversion kits for large four-axle fuel-powered heavy trucks, it announced late yesterday, citing a contract inked with Doshin's electric truck subsidiary Mirai Energy on May 19.

EV conversion kits are used to retrofit conventional fuel vehicles into electric ones, comprising components and technical solutions, including drive motors, power battery packs, transmission systems, control systems, auxiliary systems, and various sensors.

Under the agreement, IAT will develop the kits within 15 months from next month, receiving JPY500 million (USD3.5 million) in research and development revenue, the firm said. After obtaining government certification for the new product, it will begin free-on-board deliveries to the client within a year, with sales expected to top JPY6.3 billion.

As one of the world's biggest car markets, Japan has much potential for fuel vehicle retrofitting, IAT said, adding that the tie-up with Doshin aligns with the country's EV transition needs and will cut the client's logistics costs.

Beijing-based IAT researches and develops complete vehicles, platforms, and smart platforms and makes core parts. It has previously made similar deals with other Japanese partners, its most well-known clients there being Honda Motor, Nissan Motor, and Toyota Motor. 

IAT's overseas revenue reached CNY111 million (USD15.4 million) last year, accounting for 11.4 percent of its total, according to the company’s annual financial report.

Shares of IAT [SHE: 300825] closed 1.4 percent lower at CNY10.63 (USD1.48) apiece today. The Shanghai Composite Index rose 0.2 percent.

Editor: Martin Kadiev