When a Chinese city of more than 8 million people talks, electric-vehicle makers listen.

In this case, Kandi Technologies has received a huge EV distribution agreement with the city of Hangzhou that will see 20,000 vehicles leased throughout the city in an effort to test vehicle-to-grid technology. As part of the agreement, China Aviation Lithium Battery Co. will provide the EV's batteries, while the electricity will be supplied for free by local utilities. Leasing will start next month and will conclude by the end of 2013. Hangzhou is located about 110 miles southwest of Shanghai. The city is the capital of Zhejiang Province.

Kandi's EVs have a top speed of about 25 miles per hour and weigh about 1,600 pounds. Forbes estimated that Kandi Technologies will make about $6,800 per vehicle during the duration of the leasing period. The Chinese government wants to have a half-millon EVs on China's roads by 2015 and 5 million by the end of the decade. If it can get another 250 Hangzhou-sized deals up and running, it'll be all set.
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Kandi Vehicles Co., Ltd. Signed a Cooperative Letter of Intent With China Aviation Lithium Battery Co., Ltd. to Promote 20,000 Pure Electric Vehicles in Hangzhou

2012-07-18 10:23:00

JINHUA, China, July 16, 2012--Kandi Technologies Corp. (the "Company" or "Kandi") (NASDAQ: KNDI), a leading Chinese manufacturer and developer of pure electric vehicles (EVs) and all-terrain vehicles (ATVs), today announced that the Company's wholly owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. signed a cooperative letter of intent ("LOI") with China Aviation Lithium Battery Co., Ltd. ("CALB"), a subsidiary of Aviation Industry Corporation of China ("AVIC") in Beijing to promote 20,000 pure electrical vehicles in Hangzhou. Cooperation forum of municipal government and state-owned enterprise was held in Being on July 10th ,2012. There were over ten Strategic Cooperation LOIs signed between the companies from Jinhua city and major State Owned Enterprises of China at the Cooperation Forum in Beijing.

The LOI signed by Kandi and CALB is to facilitate faster development of China's electric vehicle industry and to secure Kandi and AVIC's leading positions in the EV and lithium battery industries. Their cooperation is also intended to promote structural development of China's automobile industry and accelerate transformation of economic growth pattern to fulfill the national goal of sustainable development. The State Grid Cooperation of China ("State Grid") will cooperate with AVIC through CALB for a 20,000 pure EV project through personal leasing method in Hangzhou, Zhejiang. Under the project, AVIC/CALB will be responsible to produce automobile-use lithium batteries and purchase 20,000 -electric vehicles for personal leasing, while the State Grid will be responsible for the construction and supply of the charging network to power the operation of 20,000 EVs as well as the procurement of integrated automobile-use power battery sets. The Hangzhou municipal government will provide financial subsidies and create supporting policies that are beneficial for the promotion of EVs.

- -This leasing project is led by the state and local governments' supporting policies, will fully explore the technology and scale advantages of cooperating companies, work closely with the State Grid's smart charging/powering network strategic plan, and it will become the first successful story of the EV operation in a large scale, which the Company anticipates will bring deep impact to the new energy industry of China and the world

According to the letter of intent, the project is expected to launch in this August, and is anticipated to be completed by the end of 2013. - If the cooperation and business model of this project are successful, it may be expanded nation-wide.


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  • 21 Comments
      • 4 Months Ago
      KNDI has udated its plant, It's legacy business has proven solid and the EV business is about to go Stellar.
      Gideon
      • 4 Months Ago
      Is it me or does that car look very similar to a smart car?
        • 4 Months Ago
        @Gideon
        Much cheaper and pure electric with battery swap capeability.
        SVX pearlie
        • 4 Months Ago
        @Gideon
        It's just you.
      Nick
      • 4 Months Ago
      It's unlikely they'll reach 500,000 within 3 years...........but it shows how an autocratic govt with deep pockets can make huge contributions to the environment at the snap of its fingers, something our western govts are unable to.
        Vlad
        • 4 Months Ago
        @Nick
        Autocrats have all sorts of short-term advantages. It's the long-term that's where they tend to lose. Somehow autocratic governments tend to have dismal environmental records, China included. And vice versa, most environment-friendly countries are democratic.
          SVX pearlie
          • 4 Months Ago
          @Vlad
          You say that, and yet I don't see it. How come recycling hasn't sprung up throughout the US? Why didn't we sign Kyoto?
        SVX pearlie
        • 4 Months Ago
        @Nick
        Yes, the Chinese government completely gets that oil is going to be a problem, and is pushing for solutions. I don't see this as a bad thing at all. It's a gusty play, creating a market and network that others can build upon.
          • 4 Months Ago
          @SVX pearlie
          The infastructure has been getting created and built for 4 years and many swap stations are up and running. KNDIGROUPS@YAHOO.COM
      Ryan
      • 4 Months Ago
      Seems a little slow. It is a bad thing if EVs get a reputation for being slow. Put some bigger tires on it, add in a real controller and increase the voltage and it would be a normal car.
        SVX pearlie
        • 4 Months Ago
        @Ryan
        Typical Chinese road speeds are less than the US, due to the car being much newer for most people. These are "first cars" in families. Imagine if Paris had ordered 20k Renault NEVs, and it's the same kind of deal.
      • 4 Months Ago
      The early coco got around 25 mph so it could pass as a SMV in the US. Once the gov was taken off they hit about 45. The new models Hit closer to 60 have lithium batteries and go much further per charge. Check with KNDIgroups@yahoo.com. Tons of info there.
      • 4 Months Ago
      The Ev's if they are the Kd5011 go closer to 60 KPH and that may need me to do some rechecking on. The range also extended out to 85 Miles per charge. I will have to re check those #
      • 4 Months Ago
      The 25 mph is the mandated top speed for LSEV's in most States in the US unless overridden by State law. Kandi has two LSEV models selling in the US under the name "Coco", which are smaller and use Lead Acid batteries. The top speed on these are around 42 mph with the AC off, but must be equipped with a controller that limits the speed to either 25 mph or other top speed that could be increased under state law. In my home state, Texas, the limit is 35 mph. I have driven the Coco at a local dealer and had no problem reaching the 35 "controlled" speed with pedal to go. This IS NOT a car that is being promoted in China. In China KNDI has two primary passenger EVs being sold. The KD2010EV Lead Acid Battery car in Jinhua with a top speed of 72kph (45mph) and the KD5011EV with the lithium battery, which is the Hangzhou Lease car for the 20k program, that has a top speed of 85kph (53mph) as can be seen in this recent translated China article. http://goo.gl/Krizh 18 months ago when I visited the Company in Jinhua China, I drove the KD5010 with myself and another passenger (around 400lbs between us) and reached just under 70kph just driving up the lane on KNDI's facility between buildings. There was plenty of pedal left when I had to slow down on reaching the end of the lane. http://www.youtube.com/watch?v=5jLQ09_Fnk4 But most importantly, during my eight days in China, we visited 8 cities with the driving portion being over a thousand km mainly on major highways between cities (in an ICE van). Due to traffic congestion less then 5% of that driving was done at speeds over 75km.
      Marcopolo
      • 4 Months Ago
      The original Marco Polo said, " Hangzhou is the most beautiful and elegant city in the world " ! However, that was a long time ago. 780 years later he would not recognize the city. Although the bay long since silted up, Hangzhou is once again, a huge and prosperous, but polluted city on the Yangtze delta. In 1859, one of my more ambitious relatives delivered a speech exhorting the startled British Prime Minister, at time (Lord Derby) to send British troops to Hangzhou in order to oust the Taiping rebels from the city, and "grant the benighted peoples of Southern China, that great privilege of becoming part of the British Empire" ! (needless to say this didn't occur, and the old boy failed to make a fortune in the opium trade!) The Sino-philes exuberance about this deal, seem to not realize that this is not the PRC Central Government, but the local government of Hangzhou. In the PRC, announcements of these sorts of deals are expected after lavish trade conferences. Most are never heard of again, or undergo radical revision. However, PRC marketing demographics are so huge that the supply of 20,000 little, low quality, EV's is really no big deal. It's also important to view such vehicles in the context that Hangzhou will beome oversupplied with electricity. The city has just received 5 new gigantic coal fired power plants,(with the province getting 3 more in the near future) to replace the problem of dwindling supplies of natural gas. Solar power and Wind installations are largely propaganda or window dressing. This is understandable as weather conditions for solar are not that favourable in Hangzhou or most PRC cities. These vehicle are not indications of EV progress, there is no technical or engineering advances. Instead they are simply evidence of PRC lack of innovation, but an ability to produce substandard products to a captive market that doesn't exist in nations with greater consumer choice ! The technology (and product ) is unable to be transferred outside the PRC. Opposition to Coal-fired plants is dealt with swiftly and savagely by PRC riot police. Activists are arrested and sent to labour camps by SCCPP units. @Jim, it's ok to work for Kandi USA Inc, but it's more ethical to declare that fact when posting !
        • 4 Months Ago
        @Marcopolo
        Actually they are a huge advance for EV's world wide. Much like it took many years to get a gas station on every corner KNDI and State grid, and PRC have built many Battery swap stations. This is the advancement. The ability to rapidly 2-5 min swap out an ev Battery. ONLY KNDI has this option at this price. I do not Now nor have I ever worked for KNDI. I do Invest in KNDI.It has a rock solid Legacy business that is growing and supporting EV Research and Development. I have been invested in KNDI for many years and watched people beat it to death with lie after lie that they have proven wrong. Marco, It is more ethical to look at the big picture before you speak about a company. State Grid is the 8 th largest company in the world and partnered with KNDI in Jinhua region, and Beyond. China's wind power corporations are what supplies the world with Wind Turbine Generators. Far from a pipe dream. The biggest Wind Generators are made there. The US has No actual Generator manufacturing for wind turbines. The US does errect wind turbines and does make Blades. I beleive even GE has resorted to China. China also has major hydro electric dams that produce power. By the time you drill baby drill pump to a ship, Ship around the world, pump or truck to a refinery, ship to a gas station you have polluted way more that an EV charge that cost under 6 dollars for 80 miles ever will. Coal scrubbers are becoming a must for coal plants world wide. Off peak charging is cheaper and practical. You could charge a KNDI ev for free and drive free a set of solar panels. You will never do that with EXXON EVER>
          Marcopolo
          • 4 Months Ago
          @ Jim, It's impossible to discuss anything logically with someone motivated by idealistic emotion ! But, consider the following : 1) State grid Corporation of China ( 國家電網公司 ) is owned by the PRC government. 2) PRC government owns 3 of the ten largest Oil companies in the world. 3) PRC is building 2 new gigantic coal fired plants per week ! There is no such thing as 'Clean' coal, and certainly not in PRC. 4) PRC is the world second largest consumer of oil by nation 5)PRC is the world largest polluter 6) PRC is the worlds largest consumer of Coal. In fact over half the total world consumption. 7) Most PRC Hydro-power is at a cost of human rights and are inefficient economic disasters. 8) Over 60% of PRC "domestic green energy claims" can be discredited. 9) The PRC is the only major nation to restrict the internet. The PRC is not an innovative society, almost all technology originates in the West that you despise so much ! The PRC copies, steals or builds under license for export, all new technology. This will not change until the PRC education and political system changes. Western Companies move to PRC to gain access to the PRC market and take advantage of Cheap labour. This may all change with the advent of 3D printing technology. As for shipping, if you read my post under "EC proposes 30% stricter emissions standards for 2020" just beneath this article you would understand my views on shipping fuel ! None of this means I think either your involvement or KNDI itself is wrong or improper, I'm just asking you to moderate your enthusiasm, to the vaguely creditable. Speaking of 'drill baby drill' , you are aware that the current Chairman & Chief Executive Officer at Kandi Technologies Corp.Mr. Xiao Ming Hu, was previously employed as President & Chief Executive Officer by Stone Mountain Resources, Inc. ? ! Ex- Oil and gas company exec's abound at Kandi, including, Chief Financial Officer & Director, Ms. Zhu Xiaoying, Vice president Mr. Wang Yuan Hu, Mr. Min Qian , Director. (Stone Mountain Resources Ltd, is a natural gas exploration and production company in Western Canada with interests in both the Horn River Basin and Montney shale-plays. ) Odd bedfellows you have chosen for someone who hates oil and gas companies? ! Or is it just Western companies you consider so evil ?
          • 4 Months Ago
          You will Never ever do that with EXXON ever ever never ever. These ev's can be operated for under 5 cents a mile.
        SVX pearlie
        • 4 Months Ago
        @Marcopolo
        First, I;m well aware this is Hangzhou, not their Feds, hence my analogy of Paris. Second, 20k NEVs is still a goodly number. What Western city has more? Third, WTF are you talking about "captive market" and a lack of "consumer choice"? In most ways, their consumer markets are just as free as anywhere else, possibly moreso. When was the last time you visited any part of China to see for yourself?
          Marcopolo
          • 4 Months Ago
          @SVX pearlie
          SVX pearlie Sorry, I assumed that when you employed the term "Chinese government" you meant the "Government of China", silly me ! I have visited both the PRC and ROC, at least twice a year for over 40 years! I have even lived in Hong Kong and Taipei. In my experience, Westerners tend to see only those aspects of the PRC that's available, and see through rose tinted glasses. This is not so much a deliberate policy of the PRC government (although there is some of that) as the naivety of Western visitors and a desire to see only the advantageous, in a culture that hates to display negative aspects. The comparison between the PRC and Paris, is not valid. Firstly, there are no 20,000 vehicles just a highly publicized LOI ! As I say, these pronouncements often don't eventuate. Secondly, no western country would allow such substandard vehicles, on a busy highways, for safety reasons. Thirdly, the PRC's massive tariffs and tax system, along with a controlled currency, makes the PRC a very different sort of economic system ! However, in reference to these KNDI NEV's, if the local, Provincial or Federal government wishes a product produced in the PRC to be successful in has a number of methods (unavailable, or illegal in the wes) to ensure sales. I like the Chinese, and by virtue of my UK passport, was able to visit the PRC when travel by Americans was still very restricted. Over the years, I have witnessed great changes in the attitudes of the PRC, but westerners who go overboard with PRC adulation of the will eventually be disappointed. The PRC government still controls the domestic banking system and employs nearly 2.4 million in what can only be described as a 'propaganda' industry. Many of the companies you think of as 'private', are in fact subtly controlled by State owned holding companies. The PRC is very, very complex, and plays by very different rules. It may look similar, even familiar, but you may discover that's just facade . (as many western companies have discovered to their cost ). SVX, great progress has been made in the PRC, but it doesn't hurt to be a little realistic.
        EZEE
        • 4 Months Ago
        @Marcopolo
        God Bless Australia! http://www.youtube.com/watch?v=tMgmYutL9W0&feature=youtube_gdata_player
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