Basically, there’s nothing you can complain about that vehicle. And on top of that, we have some great promotional plan that has went out to really excite the market. And we’ve seen great momentum there as Bruce mentioned. That’s about 6,500 units. And we’re working really hard to make sure those units are delivered as soon as we can. Now as far as recapturing the imagination of what the public perceive is possible with electric, especially from coming from some of us, who actually are the engineers of smartphone. It’s all about the smartphone technology and also partnerships like the ones we have with Qualcomm onto a vehicle phone factor, more than just electrification. But now intelligent and connectivity being a key milestone, like a key pillar of why you want to go electric, something that we can do with electric vehicle that you couldn’t do with an ICE, traditional ICE e-vehicle.
Having that connectivity and interactivity and usability is uniquely different and hope to see — we’re looking for that vehicle and we’ve received a lot of great media feedback. We’ve received a lot of sight unseen order of the vehicle where we believe that that vehicle in itself will be the aspirational product in the market. So with the bookends on both the high side of the business and the industry side of the business, as well as the entry level that really can convert a traditional commuter, ICE user, to convert to an electric solution, we think we’re pretty confident that and we’ve seen good momentum there and we’ve seen good excitement in the market. We’ve seen good excitement with the media as well as we’ve seen good excitement as we deliver the first set of vehicle to the consumer.
They’re definitely talking about and sharing about the great experience. So it gives us pretty good confidence that the balance of the year will perform to our expectation.
Bruce Aitken: In terms of the ASP side of the question, Fang. Horace mentioned the bookends. I think it’s a good way to think about it. JEGO at the low end with an ASP that’s a little bit under $2,000. Obviously there’s SKUs that can take you a little bit above $2,000. But that’s offset or balanced by the Pulse vehicle at the very high end of the price, about $3,500 or even $4,000 per vehicle. So we like the fact that we’ve got a brand new product with a high ASP, excellent riding experience and a brand new product at the lower end of the ASP range and they kind of balance each other out. So we don’t expect a great deal of downward pressure on ASP across the board. And then the second part is, obviously our goal has always been to use vehicles as a means to accumulate subscribers on the Gogoro network.
And we kind of have one battery pack of subscribers and battery pack subscribers. And as long as we get more and more subscribers who over time continue to pay a healthy amount of our crew on a monthly basis and we do, as you know, we see our crew stay relatively flat, quarter-on-quarter and year-on-year, then the goal is to get as many subscribers on that network. If they come riding a high-end vehicle, that’s great. If they come riding a train you can go to a Gogoro mix or a Gogoro mix XL, that’s great. If they come in writing a Jego vehicle, we’re okay with that too. One battery pack two battery pack there’s room for everybody to find a plan that meets their needs. And as long as we get accumulating riders on the network then we’re thrilled with that.
Fawne Jiang: Got you. But just a quick follow-up on that for the 6500 units in the backlog, when do you expect to deliver? And also any concern — because you mentioned that you in the balance are struggling a bit with the manufacturer capacity any constraints you foresee for the balance of the year?
Bruce Aitken: Yeah. So 6500 is the current backlog at the end of Q1. Just for transparency’s sake that backlog was about 5000 units, right? So when we talk about the potential for $8.6 million in revenue that we’ll book in Q2, which is [Technical Difficulty] then that’s against 5,000 and the 6,500 is the number that’s current as of today kind of end of April. So first clarification there. In terms of the delivery times for the backlog units, we are ramping up production in our factories just a little bit. We’ll begin to see those backlog get trimmed during Q2. Obviously, we hope that the Q2 order volume stays high, so I do expect that we’ll exit Q2 with some backlog units as well. Hard to give you an accurate forecast on that.
And in terms of dramatically increasing capacity, really our goal is to balance production across the entire year and across all different vehicle types. So no constraints in that true sense of the word, more just an effort to ensure that we’re running factories efficiently that we’re on fulfilling all the orders the customers have, whether they’re for these two new vehicles or for an existing vehicle type.
Fawne Jiang: Understood. Thanks for the color. Appreciate it.
Operator: Thank you. Our next question comes from Angelina Chen with JPM. Your line is open.
Horace Luke: Little bit hard to hear Angelina if you could speak up it would be great.
Angelina Chen: Hi. Good morning.
Horace Luke: Yeah. Go ahead.
Angelina Chen: So yeah, I just have two questions. First of all, since TaiPower has started to increase electricity price did you have any plans to raise the battery swap service fee? And if you are not planning to raise the price would the increase in electricity price impact the margin of your swap business? And second of all we are seeing rising bicycle sales in China. So do you see demand improvement for e-two-wheelers in China? And what is the company’s strategy for China in the next one to two years?
Bruce Aitken: I can take the question about electricity, Angelina. So the first thing is that you’re absolutely right, Taiwan government is increasing power rates. And clearly power is one of the components of our Gogoro network service that we provide to customers because when a customer brings in a battery pack regardless of how full or empty it is, we recharge it and then reissue it to the next customer full. So there’s kind of good news and not so good news. The good news is that the battery energy — the energy that we consume from the grid to recharge those batteries is a smallish percentage of our overall cost to operate. The single biggest cost is depreciation. We have rental for the sites where the Go stations are located.
