Kandi Technologies Receives Provincial Government Approval for Subsidy on 3,000 New Energy Vehicles in Jinhua

Kandi Technologies, Corp. KNDI today reported that the company has received formal provincial government approval on the application of the new energy vehicle pilot program in Jinhua City, located in the Zhejiang Province. The formal approval, received on June 13, 2011, provides RMB 15 million ($2.3 million U.S.) per year in government subsidies to residents of Jinhua to be used for the purchase of 3,000 Kandi clean energy vehicles through 2012. The pilot program in Jinhua uses Kandi's KD5010 electric vehicles to promote household use of electric vehicles using the "Express Change" battery model. Each Kandi car sold will be eligible to receive local government subsidies made possible through the pilot program. Kandi expects the average sale price of their KD5010 pure electric model (without battery), currently about RMB 39,800 ($6,100 U.S.), to decrease by more than 50 percent with the subsidies from provincial and city governments. The KD5010 model, tested and approved by the Chinese government, operates on a new-generation lead-acid battery.