Kandi Rolls Out First U.S.-Made Vehicle, Kicking Off Local Production
- Establishment of a 74,758-square-foot U.S. manufacturing facility enhances operational presence
- Local production capability reduces delivery times and improves customer service
- Strategic location in Dallas area strengthens distribution capabilities
- Partnership with CBAK Energy Technology for domestic battery production facilities
- Positions company among select few with localized electric off-road vehicle production in North America
- Initial production limited to golf carts, suggesting gradual scaling of operations
- Significant investment in facility and equipment may impact short-term financials
Insights
Kandi's US facility launch improves logistics efficiency, reduces delivery times, enhances operational resilience, and strengthens their North American market position.
Kandi's commencement of operations at their 74,758-square-foot Garland, Texas facility marks a strategic shift in their supply chain architecture. By establishing local production capacity for their electric off-road vehicles, the company has positioned itself to achieve several operational advantages explicitly highlighted in their announcement.
The localized manufacturing directly addresses key supply chain challenges by significantly reducing delivery times – a critical competitive factor in today's market. This operational model eliminates many of the logistics complexities associated with international shipping, including customs clearance delays, ocean freight congestion, and international transportation costs.
The facility's strategic location in the Dallas metropolitan area was clearly chosen to optimize distribution capabilities. This centralized location provides excellent access to major transportation networks, enabling more responsive fulfillment of orders throughout North America. The company can now operate with greater agility in response to market demands.
Their phased approach – beginning with electric golf carts before expanding to their complete lineup of UTVs and recreational vehicles – demonstrates a methodical implementation strategy. This allows for process optimization and quality control refinement before scaling to more complex products.
The parallel development of domestic battery production facilities through their partnership with CBAK Energy Technology reveals a comprehensive localization strategy. This vertical integration approach can further enhance supply chain resilience by securing critical component availability while potentially reducing costs.
This manufacturing milestone represents the physical manifestation of Kandi's commitment to the North American market, creating tangible infrastructure to support their growth ambitions in one of the world's largest electric vehicle markets.
Kandi's US production launch establishes competitive differentiation in electric off-road segment while improving distribution capabilities and market responsiveness.
Kandi's commencement of US manufacturing operations represents a significant competitive positioning move in the specialized electric off-road vehicle market. By establishing domestic production, Kandi joins what they describe as "the few manufacturers of all-electric off-road vehicles to achieve localized production in North America," creating a potential competitive advantage.
The company's decision to begin US production with electric golf carts before expanding to their full lineup shows a pragmatic market entry strategy. The electric golf cart segment offers a less technically complex starting point compared to their UTV models, allowing for production process optimization while generating immediate output.
The Garland facility's location in the Dallas metro area provides strategic distribution advantages for serving the North American market. This geographic positioning enables faster customer delivery – explicitly highlighted as a key benefit in the announcement – which can enhance customer satisfaction and potentially support premium positioning.
What's particularly notable is Kandi's comprehensive localization approach, which includes not just vehicle assembly but also component production through their previously announced partnership with CBAK Energy Technology to develop two US lithium battery production facilities. This vertical integration strategy demonstrates commitment to building a complete domestic manufacturing ecosystem.
The ability to label products as "Made in North America" may create marketing advantages when appealing to increasingly origin-conscious consumers and commercial buyers. It also potentially positions them to benefit from various policy initiatives favoring domestically manufactured electric vehicles.
This manufacturing milestone tangibly advances Kandi's stated US market expansion strategy, transitioning them from an import-dependent business model to one with greater operational control over their North American market presence.
JINHUA, CHINA, May 01, 2025 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (NASDAQ GS: KNDI) (“Kandi” or the “Company”), a leader in all-electric personal transportation and utility vehicles, today announced that its manufacturing facility in Garland, Texas has officially commenced operations. The first electric golf cart assembled in the U.S. has come off the production line, representing a major milestone in Kandi’s “Made in North America” initiative and a key advancement in the Company’s U.S. expansion strategy.
“The launch of our Texas facility positions Kandi among the few manufacturers of all-electric off-road vehicles to achieve localized production in North America,” said Feng Chen, CEO of Kandi Technologies. “The establishment of U.S.-based production significantly enhances our operational agility, shortens delivery times, and enables us to better serve customers with high-quality electric off-road vehicles. This milestone lays a solid foundation for our continued growth and innovation in the U.S. market.”
The Garland facility spans approximately 74,758 square feet on a 4.56-acre site. It is equipped to produce Kandi’s complete lineup of electric off-road vehicles, including UTVs and other recreational models.
Strategically located in the Dallas metropolitan area, the facility strengthens Kandi’s distribution capabilities by improving delivery speed and customer responsiveness. As the Company further builds out its U.S. production capacity, it expects to enhance its competitiveness and overall operational efficiency in the North American market.
As part of the Company’s broader localization strategy, Kandi previously announced a partnership with CBAK Energy Technology to develop two lithium battery production facilities in the United States, further expanding its domestic manufacturing footprint.
About Kandi Technologies Group, Inc.
Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua New Energy Vehicle Town，Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Technologies Group Co., Ltd. (“Zhejiang Kandi Technologies”), formerly, Zhejiang Kandi Vehicles Co., Ltd. and its subsidiaries including Kandi Electric Vehicles (Hainan) Co., Ltd. and SC Autosports, LLC (d/b/a Kandi America), the wholly-owned subsidiary of Kandi in the United States, and its wholly-owned subsidiary, Kandi America Investment, LLC. Zhejiang Kandi Technologies has established itself as one of China’s leading manufacturers of pure electric vehicle parts and off-road vehicles.
Safe Harbor Statement
This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes", "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws, the Company does not assume a duty to update these forward-looking statements.
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Contacts:
Kandi Technologies Group, Inc.
Ms. Kewa Luo
+1 (212) 551-3610
IR@kandigroup.com
The Blueshirt Group
Mr. Gary Dvorchak, CFA
gary@blueshirtgroup.co
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