Kandi The Prince and The Art of War

28 Апр 2014 | Author: | Комментарии к записи Kandi The Prince and The Art of War отключены

Kandi, The Prince and The Art of War

Machiavelli’s The and Sun Tzu’s The Art of War are the two best known treatises on strategies to conquer and to As Kandi’s electric vehicle unfolds, I’m reminded of masterpieces.

The Challenges

There are of them. To start with, the personal land transportation the internal combustion engine, is not well entrenched, it is becoming efficient as time goes by. The of peak oil are vastly exaggerated now that fracking technology has billions of barrels of recoverable to the inventory. Fuel efficiency to increase with not just engines and lighter and better cars but also with like hybrids, micro-hybrid technology and alternative fuels natural gas for light vehicles and LNG for ones.

Cheap and abundant gas is a strong incentive to develop the fuel distribution infrastructure.

The themselves are a huge challenge. cannot compete with in fuel density. The weight and of the batteries cuts down on the and payload of the electric vehicle frequent recharging and recharging a takes a lot more time filling a tank with This makes recreating the experience of an internal combustion vehicle with an electric car difficult. As if this were not the lifetime expectancy of batteries is low compared with the life of a gas which lasts as long as the car

Add to that the high cost of the and electric cars become impossible except for specific and uses like certain (post office, etc.).

high expectations for wind and power it seemed logical to who did not think the problem through, electric vehicles were a Traditional auto makers to replace the gas guzzler with a car but with an electric motor. does not work for, others, the reasons given

The challenge, then, is to think the box.

Disruptive vs. Sustaining

Clayton Christensen labels new as being either sustaining or A sustaining technology is one that easily into a company’s frame of reference. Hybrids as the Toyota Prius and micro-hybrid electric cars are example of technology.

An upstart like has practically no chance against the industry giants with a technology.

Disruptive technology, to the is one that incumbents find to incorporate into their frame of reference. The challenge, is to think outside the box to find or to a disruptive technology. A paradigm if you will.

Kandi’s Paradigm

Technology Adoption Life

In his marketing books, Crossing the and Inside the Tornado, Geoffrey uses the Technology Adoption Cycle (TALC) to describe how technology products move garage to market. He calls a model for understanding the acceptance of new In The Gorilla Game, he tells how to use TALC to help identify the — the gorillas — and how to use to time the investments.

The Whole Product

If you have a car but are no roads in your vicinity and no gas and no mechanics, then the car is not useful to you as a conversation piece. The whole includes the car, the roads and all the like gas pumps, oil companies, spare parts, driving and traffic lights.


Of I cannot get inside Mr. Hu’s I can only report what has Kandi started out making all vehicles (ATV) for export. It was to Kandi that a US listing of its would create a more image that would sales in the USA.

The listing was via a reverse merger which out to be unfortunate because several Chinese reverse mergers out to be frauds, tarring the legitimate in the process. Business was doing until the financial crisis of hit. Whether for that or for some other, Mr. Hu redirected into the pure electric business of which I became through the Seeking Alpha of Arthur Porcari in mid 2010. I what I saw and I wrote my first article on October 31, 2010.

Can electric vehicles (EVs) be technology? Not the way the major auto are approaching the market. To be disruptive a has to be cheaper and the Volt sure and it has to serve an under-served market and the sure doesn’t. To have a of success, EVs need a really new

It seems that Kandi has found such a new way. The big shift was in battery ownership in hindsight makes perfect since the battery is the main block. The car would be sold the help of subsidies) and a swappable would be leased. The program was with great fanfare, an lot of cars was sold and then dried up. What happened?

to the Technology Adoption Life (TALC), some innovators the cars but there was no follow up. The Product was missing. A viable which was quite beyond to establish, was missing.

For that needed help.

Again, I know what happened closed doors but the powers be in the PRC wanted electric cars and had them. In addition to provincial providing subsidies, the two principal electric utilities got involved. would own the batteries which serve double duty the cars as well as serving as storage in what is being Vehicle to Grid (V2G) for rechargeable batteries and Battery to (B2G) for swappable and otherwise alone batteries.

This makes for a very combination. Batteries that are no good enough to power can be used for grid storage their useful life. As storage the electricity subscribers defer the batteries’ cost.

electricity is the utilities’ business is a good reason for them to the battery swap service

Car Rental Vertical Parking

The next important paradigm was to stop looking at it as private The EVs would become public with the various city or governments creating lease and programs. The lease vehicles have swappable batteries the rental cars would rechargeable batteries which be charged in the program’s vertical while waiting for the next

Not only would these lower the cost of entry for it guaranteed a much larger sales volume for Kandi, some of the obstacles created by the usual TALC style The first lease program be for 20,000 vehicle to be delivered a period of 12 months. Although orders for batteries and cars placed, the 20K vehicle lease was also delayed on account of the Whole Product.

Now we are expecting it to go forward after the New Year (February 9 to 15, 2013).

Mr. Hu Has Made

Clearly Kandi not expect to go it alone. Each wants to have its own industries means Kandi needs partners. Kandi needs the of the electric utilities and also battery suppliers. These are of the strategic alliances Kandi has

State Grid Power

Jinhua City, Zhejiang 3,000 EV subsidy program

Power International, Ltd. for Jinhua City project

City, Hainan Province, factory 100,000 cars

Wei City, Shandong Province, factory 100,000 cars

Zhejiang Province, 20,000 car program

Zhejiang Guoxin Car Co. Ltd. Hangzhou EV leasing

Hangzhou Green EV Rental Co. EV leasing program

Hangzhou EV Technology Co. Ltd. Hangzhou EV program

Zhongju (Tianjin) New Investment Co. Ltd. Hangzhou EV program

China Aviation Battery Co. Ltd. (CALB), a of Aviation Industry Corporation of (AVIC), Batteries for Hangzhou EV leasing program

Hangzhou EV rental project with parking garage

Zhejiang Holding Group Co. joint

Geely Automobile Holdings joint venture

TongXu Vehicle Co. Ltd. marketing in TongXu County, KaiFeng HeNan Province

Mr. Hu is systematically covering all his bases partners to do all the things that are Kandi’s core competence. I it significant that Mr. Hu visited Mr.

Li at last November, not the other way It shows that Mr. Hu is the driving

Name Change

It might be symbolic but last December changed its name from Technologies Corp. to Kandi Group, Inc. to better the new reality: Kandi is no longer a go-kart and ATV maker but the leading of pure electric vehicles in a position it has achieved in barely years.

Kandi claims to an annual capacity to make cars. There is no reason why the two joint ventures can’t a similar number. When venture finally takes and it could well be this of the Snake, the results should be

Denny Schlesinger

The Prince Machiavelli (Author), Daniel (Translator, Introduction)


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