SOURCE: Kandi Technologies, Corp.

Kandi Technologies, Corp.

April 13, 2010 08:00 ET

Kandi Technologies Anticipates Government Funded Subsidies Will Jump-Start Domestic Consumer COCO Sales Under New Business Model

JINHUA, CHINA--(Marketwire - April 13, 2010) -  Kandi Technologies, Corp. (NASDAQ: KNDI), a leading Chinese exporter of recreational vehicles and developer of the "COCO" all electric LSV -- which recently forged a China-based multi-company Alliance to create a large-scale, "daily commuter" electric vehicle (EV) model city in Jinhua City, Zhejiang Province -- announced today an anticipated local and regional government initiative to move the revolutionary project forward with the issuance of government funded subsidies to the first 3000 purchasers of Kandi's electric COCO vehicles. 

According to the Company, the anticipated subsidies, including contributions from both the city and provincial level, will cover up to 50% of the purchase price of the vehicles, which have been specially designed for easy battery removal and replacement in line with the new business model for large scale EV development and sales in China. While no specific timeframe has been announced, the Company anticipates the final approval of subsidies from Zhejiang Province will be received by the end of this year. 

Close Cooperation

Mr. Xiaoming Hu, Chairman and CEO of Kandi, stated, "There is a great deal of excitement in Jinhua about becoming the leading city in China with a comprehensive approach to making electric vehicles the every day commuter car of the future. The Alliance is working closely with city officials as well as the Zhejiang provincial government to pave the way for this." He added, "The decision to stimulate initial EV sales with substantial subsidies reflects the strong commitment of our local and regional officials to the success of this joint effort. "

Battery Stations Every 5 Kilometers

Kandi said it anticipates the Alliance also will soon be announcing progress on the development and construction of the battery stations that are an intrinsic element in the comprehensive model EV city plan. Mr. Hu commented, "The strategy of the Alliance entails placing a battery station every five square kilometers within Jinhua, initially covering approximately 300 square kilometers. Obviously, this will require close cooperation between government and the Alliance, which we are confident is the case." 

He added, "I believe local government recognizes, too, that our city and region could become a key center for electric vehicle production in China, and the success we envision for our model EV city here could be replicated throughout the country." 

Jinhua City in Zhejiang Province

Jinhua City is a prefecture-level city in central Zhejiang Province, one of China's most prosperous regions, with a population of about 4 million. The city borders the provincial capital of Hangzhou to the northwest, as well as the cities of Quzhou, Lishui, Taizhou and Shaoxing, and is about 2 1/2 hours by high speed train from Shanghai. Long one of the leading collection and processing centers for agricultural and forestry products in China, the city has a rapidly growing industrial sector producing a variety of products for the domestic and international marketplace and, with Kandi as a local Company, it is home to one of China's leading manufacturers and exporters of a wide range of recreational vehicles.

About The Alliance For Chinese Electric Vehicle Development and Commercialization ("the Alliance")

On January 4, 2010, Kandi announced it had forged an Alliance with major Chinese energy, IT and battery companies to help launch a new electronic vehicle (EV) era in China. The new business model of the Alliance addresses key hurdles to mass commercialization of EVs by reducing EV purchase costs, eliminating battery concerns and substantially increasing driving ranges. The new model envisions expansion on a city by city basis of its new model, key elements of which include: strong government cooperation, separating the sale of electric vehicles from the sale of batteries, construction of a comprehensive network of "battery stations" within each city for rental, repair, replacement and charging of batteries, and also, utilizing Kandi vehicles and patented and patent pending EV technology for easy removal and replacement of batteries. The core members of the Alliance are: Kandi Technologies Corp., China Potevio/CNOOC New Energy and Power Ltd. (a joint venture between China National Offshore Oil Corporation and China Potevio Co.) and Tianneng Power International, Ltd. Jinhua City, where Kandi is based, has been chosen as the first model EV city by the Alliance.

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 a highly economical, beautifully designed, all electric super mini car -- the COCO -- for neighborhood driving and commuting. Kandi believes that battery powered, electric super minis 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.

Contact Information

  • Contacts:
    Kandi Technologies, Corp.
    Hu Xiaoming
    Chairman and CEO
    86-579 - 83906856

    US Investors:

    Ken Donenfeld
    donfgroup@aol.com
    kdonenfeld@dgiir.com
    Tel: 212-425-5700
    Fax- 646-381-9727