Zhejiang Kandi Vehicles Co, a Chinese EV maker has inked a deal with Geely’s Shanghai Maple Guorun Automobile Co, in order develop electric vehicles. The joint venture targets investment, research and development, production, marketing and sales of EVs in China.
Each company will pump in around $80 million and will develop neighborhood electric vehicles (NEVs). Such automobiles have a large sales rate in the Chinese market.
Last year, Zhejiang Kandi Vehicles had signed the largest-ever electric-vehicle distribution agreement in the country. As per the deal, they will sell about 20,000 EVs in the city of Hangzhou, the capital of Zhejiang Province.
Kandi also signed a deal aimed at selling 5,000 EVs, without batteries, in the city for about $31.6 million. Each of the vehicles will cost about $6,300. Kandi’s EVs weigh about 1,600 pounds and have a top speed of about 25 miles per hour.
Three years ago, Geely Automobile bought Volvo from Ford for $1.8 billion.