SOURCE: Kandi Technologies, Corp.
July 16, 2010 08:00 ET
Kandi Announces Construction Has Begun on the First Battery Charging Station in Jinhua With Funding From the State Grid Corporation of China
JINHUA, CHINA--(Marketwire - July 16, 2010) - Kandi Technologies, Corp. (NASDAQ: KNDI), a leading Chinese manufacturer of recreational vehicles and developer of the "COCO" and other all electric LSVs for the international and Chinese markets, announced today that construction of its first battery charging station in Jinhua City is currently underway. This is a major step toward accelerating Kandi's new business model announced at the beginning of this year, which aims to speed up the commercialization of pure Electric Vehicles (EVs) in China. The State Grid Corporation of China (SGCC), China's largest electric power transmission and distribution company, is funding the project and is responsible for construction, which is expected to be completed by the end of this year.
Under the new EV business model being implemented by Kandi and its Alliance Partners, consumers will be able to purchase Kandi EVs subsidized by the local and municipal government. Batteries will be made available for the vehicles without cost, and replaced, serviced and maintained by a new service company operated by Kandi, SGCC, and other Alliance partners including China National Offshore Oil Corporation (CNOOC), and Tianneng Power International, Ltd.
Strong Government Support Via Subsidies and Favorable Policy
The recent Chinese government policy calling for strong support of the development of electric vehicles enables Kandi to fast track its trial operation in Jinhua. The Company's plan for wide scale adoption of EVs with its "battery fast replacement model" has received numerous endorsements from the local and provincial government which have been providing full support to the Company to establish Jinhua as a "testing center" to roll out 3,000 commercialized EVs. Consumers purchasing Kandi EVs will be entitled to local municipal and provincial government subsidies of up to 50% of the purchase cost.
The establishment of a vast network of battery charging stations and service centers allows electric vehicles to not be subject to driving mileage limitations, which will make them more desirable and efficient for consumers. Additionally, potential safety hazards and other problems caused by the improper charging of batteries will be eliminated, which should also reduce potential high driving costs. The professionally managed battery service centers will also follow standard procedures for recycling and reusing depleted waste batteries, eliminating potential pollution caused by used battery waste. In short, Kandi's new EV model not only will protect the environment, but it also will solve the five major problems associated with electric vehicles, namely, high price, low driving mileage, long charging times, inadequate charging equipment and battery recycling.
Mr. Hu Xiaoming, Chairman and CEO of Kandi, stated, "As this new model being implemented in Jinhua begins to be reproduced and modified in other cities and regions throughout China, the operating boundaries of electric vehicles will continue to be expanded and prolonged. It is very gratifying that with the contributions from government and each of our partners, our first model EV city is coming to fruition. We believe that over time this will revolutionize transportation in our cities and bring with it lower costs for consumers and a cleaner environment."
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 convertible and hardtop models in the U.S., the COCO travels up to 60 miles at speeds reaching 25mph on a six hour charge. Recently, Kandi received government approvals for the sale of its super-mini EVs in China including the KD5010xxyev, which can go up to 45 mph. Additionally, the Company has spearheaded formation of "The Alliance for Chinese Electrical Vehicle Development and Commercialization ("The Alliance" -- see below) for the development and servicing of EVs in China with the goal of becoming a leading player in the emerging EV industry. 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.
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.
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.