China: another company becomes an electric automaker image

Kandi Technologies Group Inc. has massively surged in value, reaching a three-week trading high after the company – initially a specialty automaker – announced it would move on the retail deliveries of electric autos.

China is fighting with all of its powers against a powerful foe: pollution. The second largest economy of the world has been battling the effects of pollution by having the government promote (among numerous other measures) the increased usage of alternative-energy transportation – from plug in hybrids to battery and fuel cell electrics. Kandi is not alone in its quest to tap the potentially massive segment of green vehicles, with numerous Chinese carmakers (and they have lots of them) adding to their traditional ranges new electric cars – the state has extended the numerous incentives offered in a bid to propel them as the best means of curbing emissions and reduce pollution. According to data from the Ministry of Industry and Information Technology, overall production output of electric autos jumped four times during the first three months of the year from the first quarter of 2014.

According to figures compiled by Bloomberg, the current Chinese support offered to electric vehicles can in some cases bring retail prices down by up to 60 percent, as a recent Ministry of Environmental Protection report said that 90 percent of pollution in nine towns – including the nation’s capital Beijing – is attributable to vehicles, industrial production, coal burning and dust. Transportation is a key source of emissions in Beijing, Guangzhou, Shenzhen and Hangzhou, according to a report from the China Youth Daily. Beijing Automotive, the country’s largest electric vehicle producer, forecasted in March it would see a threefold increase in new-energy vehicle (China’s term for plug-in hybrids, battery and fuel cell electrics) deliveries this year.

Via Bloomberg