SOURCE: Kandi Technologies, Corp

Kandi Technologies, Corp

December 01, 2010 08:00 ET

Kandi Reports First Pure Electric Vehicle Sales to Consumers in Jinhua City in Conjunction With Opening of First "Battery Charging Farm" and "Express Change" Battery Station

JINHUA, CHINA--(Marketwire - December 1, 2010) -  Kandi Technologies, Corp. (NASDAQ: KNDI) ("Kandi" or the "Company"), today reported that, on the heels of the grand opening last week of Jinhua City's first "Battery Charging Farm" and "Express Change" battery station, consumer sales of Kandi's pure EVs have now begun. At a launch ceremony for the Company's new energy vehicles held in the People's Square on November 26, well attended by a highly enthusiastic crowd of local citizens, government officials and news media, Kandi reported that with a low base price of RMB 39,500 (US$5,918) excluding batteries and anticipated local subsidies, the Company immediately sold out the first 20 Kandi EVs available. 

According to the Company, these sales mark the start of a new era for pure electric vehicles in Jinhua, which now will be available to the city's daily commuters. Further, the Company believes the Jinhua EV model will serve as the leading example for the implementation of new energy cities in China. Supporting these sales, the Jinhua Dong Guan Electric Vehicle Charging Station, Zhejiang Province's first EV "Battery Charging Farm" and "Express Change" station is in place to provide power for the batteries and to provide rapid battery replacements as needed.

3000 New Energy Electric Vehicles Expected To Be Operated In Jinhua

According to the Company, the steps taken by the Jinhua municipal government to promote the purchase of new energy vehicles are providing significant benefits to its citizens today as well as future generations. 

Jinhua City's Vice Mayor Zhongliang Jin, who attended the launch ceremony, stated, "The development of new alternative energy vehicles is an action that not only implements the industrial policy of Jinhua City, but also aims at grasping initiatives which further develop the new energy sector, creates local advantages, and also effectively permits migration to the next generation of automobiles which will upgrade the automotive industry."

The Vice Mayor reiterated the Kandi originated model being followed in Jinhua, namely, "separating the sales of batteries and cars, centralizing the electric charging, and providing fast, safe, professional battery replacement and maintenance services." 

He added, "Our plan is to serve local residents by putting 3000 new energy vehicles in use before the end of 2012, which will result in a substantial reduction in gasoline usage as well as in carbon dioxide emissions." 

Putting specific numbers on these anticipated improvements, Mr. Jin noted that, assuming one car's mileage in one year is 20,000 km, 3000 new energy vehicles can provide a savings of 3.6 million liters of gasoline (fuel consumption of 6 liters per hundred kilometers), thereby eliminating 8114 metric tons of carbon dioxide emissions (per liter of gasoline combustion carbon dioxide 2.254 kg), containing a variety of harmful substances to reduce exhaust emissions of nearly 36 million cubic meters (per liter of gasoline from combustion of 10 cubic meters).

Kandi's Innovative Business Model: Solving Five Major Obstacles to EV Success

Commenting on the Kandi Model KD5010 being sold in Jinhua, the Company stated, "Over the years, Kandi has been committed to the development and manufacturing of new energy vehicles, and eager to provide consumers really good product at an affordable price. The Kandi KD5010 EV has been designed from the ground up as a pure electric vehicle for use in the city. Its novel design, small size, ease of parking, comfortable and spacious interior -- two-seats with a large trunk -- makes it a very practical yet environmentally friendly city car for daily commuters. It has been approved by the Ministry of Industry, and included in the national catalog of new energy automotive applications directory of recommended models, and now it will officially be 'on the road' in China."

As the Company has outlined in prior releases, there are five reasons experts cite that have delayed placing pure electric vehicles into commercial scale production and operation: high price, short driving range, long charging time, inadequate charging facilities, and waste battery recycling difficulty. To solve these problems, Kandi adopted a new business model: "separation of electric car and battery", in which car users are not required to buy batteries. Instead, a professional services firm provides battery leasing, management, charging, rapid change, and recycling. 

The Company believes that its selling model enables its EV price to be 10% to 20% lower than that of similar grade gasoline powered cars. It further believes that the operating cost per hundred kilometers of the EV in the new business model could be approximately 50% lower than the cost for fuel in similar gasoline powered cars and up to 40% lower even compared with low-emission gasoline vehicles. It added that Kandi's EV can travel approximately 100-150km per battery change. Further, in the new business model, there is an "Express Change" station every five kilometers, providing support services to extend the operating range of pure electric vehicles which no longer are limited in driving range. Battery charging time takes 7 ~ 8 hours, but this time can be shortened by centralized charging; moreover, the driver only needs to go to the nearby "Express Change" station to replace the battery. There's a professional services company that will properly change the battery and users will not face a long charging time. The professional services companies can also implement standard management of scrap batteries and focus on recycling, regeneration, preventing pollution, and protecting the environment.

The New Battery Charging Farm and Express Change Station

The Jinhua Dong Guan Electric Vehicle Charging facility and "Express Change" (battery replacement) station, a result of an over RMB 30 million investment by the State Grid Power Corporation, is the Zhejiang region's first electric car battery charging and "Express Change" battery station, and also is the province's largest and most complete facility of this kind. In addition to the Dong Guan Electric Vehicle Charging Station, at selected intersections of every 5 by 5km within a range of 300 square kilometers in Jinhua, it is expected there will be six "Express Change" stations to form a standard and rapid battery replacement distribution network.

About Kandi Technologies, Corp.

Kandi Technologies, Corp. (NASDAQ: KNDI) ranks as one of the largest manufacturers and exporters of go-karts in China, making it a world leader in the production of this popular recreational vehicle. It also ranks among the leading manufacturers in China of all terrain vehicles (ATVs), and specialized utility vehicles (UTVs), especially for agricultural purposes. Recently, it introduced a second generation high mileage, two seater three-wheeled motorcycle. A major company focus also has been on the manufacture and sales of highly economical, beautifully designed, all electric super mini cars for neighborhood driving and commuting. Available in the U.S., convertible and hardtop models of the CoCo travel up to 60 miles at speeds reaching 25mph on a six hour charge. In China, the government recently approved the sale there of Kandi EVs, including the larger, more powerful KD5010, now being sold in Jinhua City, where the city's first "Battery Charging Farm" and "Express Change" battery station has opened. This and planned additional "Express Change" battery stations are operated by a pioneering three partner joint venture in which Kandi holds a 30% interest with China's leading battery maker, Tianneng Power International, Ltd., and Jinhua Bada Group, a subsidiary of State Grid Power Corporation, China's largest power company. Participation in China's first Electric Vehicle (EV) battery replacement services company will mean the development of two revenue streams for Kandi -- one from the sale of its battery-powered vehicles and the other from a share of the battery rental, replacement, charging and recycling fees generated by the new joint venture. Kandi believes that battery powered, electric super minis and related services will become the Company's largest revenue and profit generator. The Company's products can be viewed at http://www.kandivehicle.com. Its corporate/ir website is http://www.chinakandi.com.

Information Regarding Forward-Looking Statements

Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the Securities and Exchange Commission.

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