Got $10,000? That’s All You Need to Buy this EV
Chinese company Kandi Technologies is now selling the cheapest electric car you can find in the US
If you searched for the most affordable electric vehicles today, you’d be hard-pressed to find anything that costs less than $30,000.
The cheapest mainstream model I have seen so far is the 2022 Nissan Leaf S, which clocks in at $27,400. Most others such as the entry-level Hyundai Ioniq and Chevy Bolt 1LT sit just above the $30K mark.
And then there’s Kandi K27.
Manufactured by the China-based Kandi Technologies, the K27 has an MSRP of $17,499. When you factor in a $7,500 federal tax rebate, the EV model’s price drops to $10,000. Currently, that’s the lowest you’ll pay for an electrified four-wheeler in North America.
So What Do You Get for 10K?
As expected, not much.
The K27 is not aiming to upstage Tesla. It is pretty bare bones — you get a 60-mile range with a top speed of about 70 miles. It does have basic safety (ABS, back-up camera) and connected (Bluetooth, 9-inch screen) features, but that’s not where its appeal lies.
The car only works for those on the tightest of budgets and have limited mobility needs. It will do fine for groceries, errands, and best case scenario, food delivery runs. In winter, it may just be a little more comfortable than an e-bike.
So, if you are a student or you live in a golf cart community, the K27 maybe for you. Just don’t expect any road trips from it.
For that, you have to opt for the pricier K23, which is closer to a real car. But the K23’s $27,499 (about $20,000 after incentives) price point also pits it against an entry-level Leaf or Bolt — so it’s hard to visualize anyone opting for an unknown Chinese brand.
Who’s Kandi?
Kandi Technologies is a NASDAQ-traded (ticker: KNDI) company that has a strategic partnership with Volvo owner Geely to produce and sell electric vehicles. Kandi is also involved in carsharing programs.
The company is not yet a major player in China, and has delivered mixed results in the last 10 years or so of its existence. It has also been accused of fudging sales data in the past.
Kandi set up shop in Dallas last year as Kandi America (the actual legal entity is called SC Autosports LLC). It didn’t sell any cars in 2020 owing to import delays caused by the pandemic, but is looking to change that in 2021 as it continues to evolve its financing and retail options. The year is almost up, and as far as I could tell, it still hasn't sold anything.
Does Kandi Have a Real Shot in North America?
I doubt it.
A $10,000 EV sounds appealing on paper but the K27's range and power limitations rule out any private use in American cities. Unless you are Mr. Bean.
Very few 20-year-olds would be caught dead on campus in a car that tops out at 70-miles-an-hour. They are better off with carshare / rideshare options that are available in many North American cities and campuses.
Kandi’s lack of any real retail presence so far is also a major barrier. The brand has nearly zero awareness and its cars aren’t sexy enough for people to seek them out. The K23 and K27 models need a cracking sales and marketing team to even make a dent.
Even putting aside these factors, Kandi’s Chinese origins maybe its biggest problem. Americans may be OK to buy a cheap Chinese tire, but when it comes to an actual car, there’s very little appetite or trust.
We have been hearing about the imminent Chinese mobility invasion for many years. Several big Chinese auto brands (BYD, GAC) have made big announcements about entering America. Many have even shopped around for dealers. But none of their efforts have materialized yet.
Among other things, safety always pops up as a concern for Chinese cars. Kandi claims its vehicles are certified by the National Highway Traffic and Safety Administration (NHTSA), but as this CNN article pointed out, NHTSA does not approve vehicles. Rather, automakers self declare their road worthiness. NHTSA only steps in if there are safety concerns or issues. So the certification in itself doesn’t mean much to consumers.
Kandi would be better off targeting closed-range fleets (e.g. airport utility vehicles, amusement parks) or mobility vehicle programs. Not that these segments are free of competition, but the models at least have some real applications there.
Once again, given the current state of U.S.-China relations, selling these cars to quasi-government operations, or family venues, would be as easy as selling diesels to Greenpeace.
Unless Kandi pulls something radical, it would most likely go down as another case of DDOA — dead dragon on arrival.
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