"This is a milestone event for Kandi," stated Mr. Xiaoming Hu, Kandi’s Chairman and CEO, "representing the start of what we see could be a significant ramping up of COCO electric car sales in China to the Postal Service nationwide. They as well as other public services such as sanitation and taxis are being strongly encouraged by government programs to update their fleets to reduce oil and gas consumption and help clean up the environment."
Template For Future Electric China Postal Services Sales
The Company said the COCOs sold to Jinhua City China Post, with a selling price of 51,800 RMB (US$7,587.63) per vehicle, were modified to meet the particular needs and specifications of the Postal Service. Specifically, the Company pointed to changes in the interior of the vehicle such as a larger trunk and elimination of the passenger seat to permit increased storage space. Otherwise, the vehicle is a "standard" all-electric COCO hardtop, running on two twelve volt batteries that are fully rechargeable in six hours and permit the super mini to travel distances up to 80 miles at speeds up to 25 miles per hour.
Significant Market Opportunity For Kandi
The Company said it believes that with these modifications the electric COCO will meet and exceed the needs of the China Postal Services throughout the country which it estimates currently at more than 300,000 outdated gas powered small trucks and bicycles that will be eligible for replacement under direct purchase grants being developed by the government to encourage the use of electric vehicles.
"We are actively pursuing Postal Service sales with a particular focus initially in our home province of Zhejiang and neighboring cities where we believe we have a leg up on potential competition," Mr. Hu said, adding, "in any case, the very substantial national public service opportunity provides lots of room for growth for Kandi as well as other potential manufacturers of electric or other alternative fuel cars."
In 2008, Kandi Technologies, Corp. (NASDAQ: KNDI) generated nearly $41 million in sales and profits of about $5 million, principally from its core All Terrain Recreational Vehicle (ATRV) businesses. The Company ranks as one of the largest manufacturers and exporters of go-karts in China, making it a world leader in the production of this popular recreational vehicle.
It also ranks among the leading manufacturers in China of all terrain vehicles (ATVs), and specialized utility vehicles (UTVs), especially for agricultural purposes. Recently, it introduced a second generation high mileage, two seater three-wheeled motorcycle.
A major company focus also has been on the manufacture and sales of a highly economical, beautifully designed, all-electric super mini car — the COCO — for neighborhood driving and commuting. Kandi believes that battery powered, electric super minis will become the Company’s largest revenue and profit generator. While nearly all Kandi products have been exported, including more than 65% to the U.S., the Company is intensifying efforts to shift 50% of its sales to China where markets have continued to be strong.