Kandi Technolgies Corp (KNDI)

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Kandi Sells 1,000 Electric Autos For Car-Sharing

By BILL PETERS, INVESTOR'S BUSINESS DAILY
Posted 02:03 PM ET


China-based electric-vehicle maker Kandi Technologies (NASDAQ:KNDI) on Wednesday announced that it has sold 1,000 electric vehicles to leasing company ZuoZhongYou Electric Vehicle Service for $21.5 million, a deal that comes amid that nation's growing pollution troubles.

The cars will be used in car-sharing and leasing programs that recently debuted in the Chinese city of Chengdu. The car-share program began last year in Hangzhou and has since been used in other Chinese cities.

The leasing company's owner, Zhejiang ZuoZhongYou Electric Vehicle Service, is "the first in market to initiate the ... EV sharing program," Kandi said.

The sale and delivery were completed Dec. 16, Kandi said.

"The growth in (the electric-vehicle) industry in China is driven by the much-needed improvement in environmental contamination, traffic congestion and scarce parking," Kandi CEO Hu Xiaoming said in a press release. "We expect demand for EVs to accelerate going forward, given government policies at all levels."

Hu added: "Despite the weakness in crude oil price, our innovative Car-Share business model will continue to expand rapidly into more regions throughout China."

Kandi shares rose 6% in the stock market today, reversing seven days of declines below the key 50-day line.

The sale of the vehicles follows Kandi's launch last month of a car-sharing mobile payment service that uses Alibaba's (NYSE:BABA) e-payment service Alipay.

Alibaba shares rose 2% to 107.80.

As China's auto market has grown, it has created a lot more smog. Pollution overall became so bad that it shut down schools and airports in the northern city of Harbin last year.

Kandi has tried to address those problems. Along with its car-sharing service, the company has been building charging facilities at a variety of locations and large automated garages that let drivers rent electric cars.

Meanwhile, Tesla (NASDAQ:TSLA), whose focus has been on sports cars, rose 2.6%. But shares have struggled below the 50-day line this month.

Read More At Investor's Business Daily: http://news.investors.com/technology/121714-730981-kandi-sells-electric-vehicles-to-zuozhongyo.htm#ixzz3MDRixaU6
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