Kandi makes $89-million deal as Chinese auto market moves online

Kandi Technologies Group

Kandi Technologies Group (NASDAQ: KNDI), a Chinese EV-maker and car-sharing operator, has announced a new sale that will not only significantly expand its volume, but also explore the potential of online EV sales.

Kandi Electric Vehicles Group, a joint venture with automaker Geely, has signed a sales contract with Zhejiang Shi Kong Electric Vehicle for 4,000 vehicles – 1,500 of the Kandi K11 Panda and 2,500 of the Kandi K10 Mini. Deliveries are expected to be completed this year.

The $89-million deal is a big one for Kandi, which logged sales of $30.6 million in the first quarter of this year, representing 1,670 “EV products.”

The Chinese EV market is growing quickly – 10,856 domestically produced high-speed plug-in cars were sold in China in May – including 700 Geely-Kandi Pandas (pictured above), according to ChinaAutoWeb.com.

Meanwhile, several firms are venturing into online auto sales. The Internet shopping giant Alibaba (NYSE: BABA) has reportedly formed a strategic partnership with Lifan Auto for the latter to build a small EV for the online platform, while the two cooperate in car financing and services. Other Chinese internet players, including Baidu, JD.com and Tencent, are also dabbling in the auto market.

In announcing the latest deal, Kandi said that “Zhejiang Shi Kong is dedicated to deepening the penetration of new energy vehicles (NEVs) through the Internet Plus concept.”

“The Internet Plus concept is widely recommended to facilitate the adoption of NEVs in China,” said Kandi CEO Hu Xiaoming. “The 4,000-unit sales contract marks Kandi’s entrance into this innovative field, and will further enhance our leadership position in China’s EV market.”

SEE ALSO: Investors see huge potential in Kandi’s Chinese electric car-sharing service

 

 

Source: Investor’s Business DailyChinaAutoWeb.com