SOURCE: Kandi Technologies, Corp.
December 13, 2010 08:00 ET
Kandi in Talks to Expand Consumer Pure EV Sales to Neighboring Provincial Capital City of Hangzhou
Hangzhou Government Planning for More Than 20,000 New Energy Vehicle Sales Before the End of 2012
JINHUA, CHINA--(Marketwire - December 13, 2010) - Kandi Technolgies, Corp. (NASDAQ: KNDI) ("Kandi" or the "Company"), a leading Chinese exporter of recreational vehicles, developer of the "CoCo" all electric LSV, and a leader in Electric Vehicle (EV) development in China, reported today efforts to develop its "Express Change" EV model and EV sales in a second city -- the nearby major metropolis of Hangzhou -- are gaining momentum.
Kandi said it has been in ongoing discussions with government officials in Hangzhou, less than 80 miles from the Company's home base in Jinhua, in support of the provincial capital's goal of being China's leader in EV development. Officials in Hangzhou have recently initiated an aggressive plan to have over 20,000 new energy vehicles on the city's streets before the end of 2012. Kandi and its joint venture partners believe they can play a significant role in helping Hangzhou move forward more quickly and effectively with its EV efforts. In the months ahead, Kandi expects to make concrete announcements about its new expansion into the Hangzhou market.
Hangzhou's Aggressive Development Plans Offer Clear Opportunity for Kandi's Innovative Pure EV Model
Hangzhou is one of the five original pilot cities selected by the Chinese government to be eligible for national subsidies to promote the sale of new energy vehicles and has grasped the opportunity by taking several significant related initiatives. These include announcing plans for a variety of additional locally funded subsidies to be paid directly to renters and buyers of pure EVs (up to $9000 or RMB 60,000) and hybrid vehicles (up to $7500 or RMB 50,000). Additionally, the local government has announced plans to build a network of EV infrastructure to serve the more than 8.1 million residents of this large (6,505 square miles) and very prosperous (per capita GDP $10,972) city. The city has announced it intends to build four centralized battery charging stations, 38 changing stations, 145 distribution centers and 3,500 sets of charging poles to support both hybrid and pure EV sales.
Kandi's current discussions with the Hangzhou government are focused on the significant advantages of the affordability and reliability of Kandi's pure EV, as well as Kandi's innovative "Express Change" service model. Kandi firmly believes that it offers the most cost effective and practical solution to quickly build consumer confidence in pure EVs and to remove all key obstacles to their widespread adoption. With its knowhow, experience, patented technology and strong partnership, the Company is working hard to capture a significant share of projected new EV sales in Hangzhou.
New Hangzhou Corporate Office
In order to better promote the sales of pure EVs in Hangzhou, the Company said in recent weeks it has been adding to its presence in Hangzhou with the opening of a new corporate office.
The Kandi "Express Change" EV Model Will Apply in Hangzhou
The Company explained that, as is the case in Jinhua, the EV model it expects to bring to Hangzhou is its "Express Change" model, which it believes overcomes the key obstacles to the widespread success of EV sales, including high cost, short driving range, long charging time, inadequate changing facilities and the difficult and dangerous disposal of waste batteries. In the Kandi model, the battery is separated from the sale of the car. As a consequence, the cost of Kandi's KD1050 EV in Jinhua, excluding battery and subsidies, is a highly affordable $6000 (approximate). A battery "charging farm" built in Jinhua by joint venture partner State Grid Power Corporation safely charges batteries and distributes and collects them. Planned "Express Change" battery stations every 5 kilometers throughout the Jinhua downtown area will extend driving ranges. At these battery stations and the battery "charging farm," drivers can exchange batteries with professional help in under two minutes, just as they might refill their gas tanks, but at up to one half the price on average. While additional "Express Change" stations are being built, there are mobile "Express Change" units dispatched throughout the city.
Another Key Milestone
Mr. Hu Xiaoming, CEO and Chairman of Kandi, concluded, "I am pleased to be able to report these newest developments in the execution of our EV growth strategy based on city by city expansion of our 'Express Change' model, which we believe is the most affordable and achievable model for the long-term development of EV sales throughout China. With the successful launch and execution of our Jinhua City project, we now believe we are positioned to build sales and service revenues in a second, much larger city not very far from our home base. In turn, this should help open doors to Kandi EV sales in many more cities over time, where our easily replicable 'Express Change' model provides the solutions being sought."
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.