KNDI Invests Into Joint Venture, Geely Bets on New Energy

Geely announces on 24 Dec that it invests 100% of KNDI share into joint venture, which with price of 641 million Yuan. It means that Geely steps closer to its electronic car strategy.

Geely and KNDI found their jointventure in March this year with 50% shares of each company. The company does business of investment, research, manufacture, marketing and sales business in China. According to framework before, joint venture shall purchase part asset of Geely and KNDI group.

According to published data, March 18, 2008, KNDI launches NASDAQ as the first Jinhua of Zhejiang Province. It is one of the biggest all-terrain vehiclemanufacturers, which owns electronic car, Karting, beach vehicles, tricycles and UTV etc. more than 50 products.

“Geely electronic car does not mature enough. It still relies on cooperation with KNDI. KNDI is familiar with export business.”Some people of industry said to reporter.

Geely staff points out that in the past 10 years electronic car becomes the mainstream of automobile market. Majority automobile companies have their electronic cars, which own huge potential market.

As it known, new energy car business becomes one of the most important parts of Geely business mode. After many years technology accumulation and preparing, Geely starts to publish some new products. In the Shanghai Auto Exhibition this year, Geely shows its new electronic car EC7-EV, and its pure electronic car EK-1 and EK-28 have its catalog as well. On 5 June, KDNI announces that it will cooperate with Geely to develop its first pure electronic car JL7001BEV has been approved by MIIT already.

Geely bets much on electronic car. As it known by informed sources, since joint venture found, vice president of marketing of Geely Group new energy dept. Jinliang LIU is appointed as vice sales and marketing president of joint venture. It means that Jinliang LIU takes Geely Group new energycar marketing, which will be new pilot of new energysegment of Geely.

Insider point out that with 2 million sales goal of Geely up to 2015, electronic car development has great expectation.