HANGZHOU, China, March 28, 2013 /PRNewswire/ -- Geely Holdings and
Kandi Technology Corporation announced the creation of a framework
of cooperation on March 22 which will
see the two companies work together in a new joint venture company
involved in the research and development, production, investment,
and marketing of electric vehicles.
The new company will be formed with Geely's subsidiary, Shanghai
Maple Auto, and Kandi with initial invested capital reaching
100 million yuan, with each party
taking a 50% share in the new company. Both parties will be equally
involved in the new joint venture by playing off each other's
strong points in the areas of electric car development and car
production.
With increased importance placed on the development of new
energy vehicles in China by the
government at all levels of governance, and with consumers' ever
growing environmental concerns, Geely and Kandi are aiming to bring
mass market, affordable cars to the markets. In initial stages, the
new company will focus on developing electric vehicle solutions for
the public transport system in the Hangzhou area, and will later expand to other
areas, including electric automobiles. Hangzhou was selected as an electric vehicle
test city along with 24 other pilot cities in China to better understand infrastructure and
consumer needs during the transition from traditional gasoline
engines to new energy products, and as such the city has already
invested considerable amounts of funds into developing electric
vehicle infrastructure around the city, making it a strong starting
point for the new joint venture company.
Hu Xiao Ming, the General Manager
of the new joint venture, remarked, "New energy vehicles are being
supported by city, provincial and state-level leaders, therefore
enterprises in China have a
responsibility to provide reliable and convenient products and
services, as well as new business models."
Geely's chairman Li Shufu commented, "Geely has been researching
electric vehicles for a number of years and has accumulated a great
amount of experience in this area. We aim to expand our abilities
by partnering with Kandi to further the development of the electric
vehicle and together exploit growing consumer demand for green
cars."
Geely (Hong Kong Stock Exchange: 175) is engaged in the research
and development, production and sales of automobiles. Geely has the
capacity to produce 600,000 vehicles, engines and gearboxes per
year. Geely's existing electric vehicle range has already entered
into the Ministry of Information and Technology's list of supported
electric vehicles, which further strengthens the central
government's support for Geely's products.
Kandi Technology (NYSE: KNDI) is a Jinhua, Zhejiang Province-based company focused on the
research and development, production and sales of both electric and
motor vehicles. Kandi has established itself as the world's largest
manufacturer of off-road vehicles, electric vehicles, ATV's,
trikes, farm vehicles, etc, which includes over fifty different
kinds of vehicles.
SOURCE Zhejiang Geely Holding Group Co., Ltd.