Kandi Delivered 1,000 Electric Cars To Chengdu and 700 To Guangzhou
Kandi Technologies Group announced volume sales and deliveries of electric cars in both Chengdu and Guangzhou in China.
First, Kandi Electric Vehicles Group Co. (JV with Geely Automobile) delivered 1,000 EVs to leasing company ZuoZhongYou (Chengdu) Electric Vehicle Service Co. (a wholly owned subsidiary of Zhejiang ZuoZhongYou Electric Vehicle Service Co.).
Revenues from this deal amount to approximately RMB 133 million ($21.5 million) for 500 of each SMA7000BEV and SMA7001BEV (those names must be some kind of code). All cars will be used in the newly launched Car-Share Program and Group Long-term Leasing Program in Chengdu upon the receipt of the vehicle license plate registration approval.
On average, one vehicle must cost some $21,500.
Mr. Hu Xiaoming, Chairman and Chief Executive Officer of Kandi, commented:
“The growth in EV industry in China is driven by the much-needed improvement in environmental contamination, traffic congestion, and scarce parking. We expect demand for EVs to accelerate going forward given government policies at all levels. Despite the weakness in crude oil price, our innovative Car-Share business model will continue to expand rapidly into more regions throughout China.”
About the Car-Share Program
“Zhejiang ZuoZhongYou Electric Vehicle Service Co., Ltd. (“ZZY”) is the first in market to initiate the public pure EV sharing program (the “Car-Share” Program). Kandi, through its 50% ownership interest in Kandi Electric Vehicles Group Co., Ltd. (the “JV Company”), indirectly holds a 9.5% interest in ZZY.
Individually driven pure EVs are widely used in the Car-Share Program. The charging/parking stations which provide a variety of services, such as charging, maintenance, battery recycling, are located at airports, train stations, hotels, business centers, selected residential areas and other places that are typically congested. A network system provides EV rental service to individual drivers in and around the city. It also provides EV maintenance and battery charging to self-service users. Lastly, a tracking system allows the Car-Share Program management to keep a close watch at the status and precise location of each vehicle.
This Car-Share Program model has been implemented in Hangzhou since the second half of 2013, and has now begun to expand into other major cities in China.
The Group Long-term Lease Program is a lease model that uses enterprise, community or village as lease units and each unit leases a minimum of 100 EVs with a group lease term at a minimum of three years.”
Separately, in Guangzhou, Zhejiang JiHeKang Electric Vehicle Sales Co. delivered 700 Kandi EVs for approximately RMB 90.2 million or $14.5 million. The average is lower – over $20,000 but there is a larger portion of the smaller SMA7000BEV model (550) than the larger SMA7001BEV (150).
“Guangzhou Mingzhi will be responsible for promoting and implementing EV leasing businesses in Guangzhou market. Working directly with the local auto distributor will be an effective marketing strategy to enhance Kandi brand’s market visibility and attract more renewable energy automobile pilot cities to promote and purchase Kandi brand EVs. Guangzhou is one of the national renewable energy automobile pilot cities, therefore, the purchaser of Kandi’s two EV models are eligible to receive the same amount of subsidy payment from both the national government and the local government.”