Geely Holdings and Kandi Technology Corporation have created a framework of cooperation 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 CNY 100 million (US$16 million), 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.
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.
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.—Li Shufu, Geely chairman
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.
Kandi Technology 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, ATVs, trikes, farm vehicles, and more.