The trade war between Beijing and Washington do not scare Kandi Technologies. This Chinese manufacturer who develops with Geely, “mini” electric cars, intends to tackle the US market with its model K22 and SUV, the EX3.
Listed on NasdaqIn June 2018, Kandi Technologies acquired the Texan distributor Sportsman Country for $ 10 million. He works with him to sell the two models to American motorists. Sales will begin as soon as regulatory procedures, currently blocked due to shutdown, have been validated.
The cheapest electric car
Market studies have “convinced” the brand to embark on the adventure. It seems that “customers appreciate our models and our prices are competitive”, explains Hu Xiaoming, CEO of Kandi, in an interview with Bloomberg. Indeed, the Chinese manufacturer plans to market its K22 less than 20,000 dollars (17,555 euros). He did not specify the rate of the EX3. In China, his SUV does not exceed $ 14,000.
For comparison, the cheapest electric car in the United States in January 2019 costs $ 24,000. This is the Smart ForTwo, specifies the specialized site wattEV2Buy. The Tesla Model 3, the least expensive of the range of the famous firm of Elon Musk, is worth, at least, $ 35,000. In France, the cheapest electric car is the Renault Zoe (23,000 euros).
Up to 5,000 units reserved for export
“Our distributor is confident about sales prospects,” says Hu Xiaoming. However, this is not the case for investors. On the stock market, the stock finished lower on Wednesday night, losing 6.36% to 5.01 dollars.
It must be said that other Chinese manufacturers such as BYD, Guangzhou or Great Wall have been interested in the US car market before Kandi. The deterioration of trade relations and the tariff war between the United States and China however, broke their ambitions.
The trust of Kandi Technology is therefore scary investors. The Chinese manufacturer plans to book this year from 2,000 to 5,000 units of its production for export. The company, based in Jinhua, Zhejiang Province, is building a new plant. Located in Jiangsu Province, it will have a total production capacity of 50,000 units.
Kandi Technologies plans to attack the market with two very different cars. The K22 is a city car with two seats. It is equipped with a battery of 19 kWh for a range of 134 km with a maximum speed of 104 km / h, explains the specialized site “leblogauto”.
The SUV EX3 comes from the offer of Geely, in its petrol version, the Vision X3. Its electric four-seater declination has a 42 kWh battery that allows it to display a range of 300 km, for a top speed of 120 km / h.