Kandi Technologies to Prosper Further in China
Published By : 12 May 2015 | Published By : QYRESEARCH
Kandi Technologies has been prospering for quite some time in China. This manufacturer of go-karts, ATVs, and electric vehicles recently showed some of its latest profitability figures which show the 4th consecutive time that the company’s performance has gone beyond expectations. In the 1st quarter, revenue stood at almost US$44 million, which happened to be quite unsatisfactory as against the seasonally driven holiday quarter.
However, the figure was still good enough for an annual growth of 9%. The business of Kandi had started with the production of go-karts and ATVs however the model has changed phenomenally over the years from the time the company entered into a joint venture with another vehicle manufacturer called Geely Automotive. The main aim of this business collaboration was to manufacture electric cars for the China automotives market.
During the initial three months, the total number of units sold in the China market was 1215, and it increased significantly over a period of time by 37% thereby reaching a sales figure of 1670 units. Industry experts say that the business balance is expected to get better in the current year. As per the market expectations of Kandi, this joint venture should ideally be able to sell a total of 20000 cars on an annual basis, which will be twice 10.935 units that were sold in the previous year.
It is anticipated that greater than 50% of those vehicles will contribute to the company’s thriving and prospering vehicle business which also involves Chinese drivers to rent vehicles on an hourly basis. In countries such as China, which are marked by low degree of car ownership, cars such as the Zipcar have immense potential.