Kandi Technolgies Corp (KNDI)

[bullmarket2222]

Just saw this new report came out today, which mentioned that Hangzhou's microbus model will most likely be copied over to Ningbo, and Kandi would be the direct beneficiary for EVs to be used in microbus project. Below is the article, and I translated the parts that are interesting....

http://auto.huanqiu.com/technologyfrontier/2014-08/5118022.html

Ningbo plans to explore leasing model to promote new energy vehicles

Recently, Zhejiang Ningbo NEV promotion and expansion plan has been announced. By 2015, a total of 5000 NEVs will be put into use, including 500 buses, 350 taxis, private cars 3689, 131 public service vehicles, special vehicles 330.

Ningbo will develop NEV commercial leasing model, take a long-term lease and car-sharing in ways to promote the use of NEVs, and put effort to develop urban short-distance travel PEV car rental (micro bus) service model.

Taxi (including micro-bus) 350 EVs. By 2015, to promote 150 PEV taxi. The Municipal Transportation Commission is in charge of this; to promote 200 car-sharing car rental (micro bus) PEV. Promotion and operation mode applyes "production - Investment - Management - Maintenance" integration ideas, and actively cultivate Ningbo local taxi production operators to explore the development of cooperation with third-party investment management business model.

Ningbo will establish special subsidies to promote the application of NEV, (The Interim subsidy measures will be announced seperately), during a demonstration period, for the purchase of those NEVs that fit for national and Ningbo related regulation conditions, Ningbo will provide 1:1 subsidy ratio to central government subsidies; For the charging facility investments, we will gave 20% subsidy.

Innovatively develop NEV commercial leasing model, encourage NEV manufacturer and operating company to form a NEV car rental company, to take both long-term lease and car-share models to promote the use of NEV, put efforts to develop an urban short-distance (micro bus) service model.

Market reaction: Kandi and several other car companies will benefit

At present, Ningbo has Geely, Volkswagen, Kat Jiang, Li Tong etc. vehicle manufacturers and several hundreds of large scale auto parts companies.

By 2015, Ningbo will promote 500 buses, potential benefitial businesses are young car, BYD, etc; It will promote 350 taxi (micro bus), potential benefitialries are Kandi, Geely, Chery, Zotye, etc; And 3689 private cars ,potential benefitialliries are Geely, Volkswagen, BYD, Chery, Zotye and so on.

In micro-bus rental and long lease areas, Hangzhou already has a very matured leasing model, its marketing model is Kandi car. Ningbo may just directly copy Hangzhou leasing model to promote and expand NEV, Kandi etc. auto companies will directly benefit from this. In private car area, direct benefitialries will be Geely, Zotye, Chery and other local enterprises in Zhejiang Province.