Kandi Technologies Group, Inc. (KNDI): Business Model Canvas [Dec-2025 Updated]

You're looking under the hood of Kandi Technologies Group, Inc. (KNDI) and wondering how they are navigating the shift from simple electric carts to a complex dual-engine business spanning off-road vehicles and new energy infrastructure, so let's cut right to the core financials: their H1 2025 net revenue hit $36.3 million, supported by a strong liquidity position of $256.7 million in cash as of June 2025, all while targeting a much healthier gross margin near 45.2%. Honestly, the real action is in their strategic partnerships and the planned $130 million capital expenditure for US battery and vehicle capacity, which is the key to de-risking their supply chain and capturing new market segments. Dive into the nine blocks below to see the precise structure behind this ambitious blueprint.

Kandi Technologies Group, Inc. (KNDI) - Canvas Business Model: Key Partnerships

You're looking at how Kandi Technologies Group, Inc. (KNDI) is structuring its external relationships to drive growth, especially as it pivots toward infrastructure and specialized mobility in late 2025. Honestly, the focus has clearly shifted from just selling vehicles to becoming an essential supplier in larger ecosystems.

The partnerships are critical because they validate Kandi Technologies Group, Inc.'s technology and provide access to massive deployment targets, which is key for a company that reported H1 2025 net revenues of $36.3 million.

Here's a breakdown of the core alliances:

• - Contemporary Amperex Technology Co., Limited (CATL) for battery swap equipment supply.
• - DEEP Robotics for co-developing intelligent golf caddy and security robots.
• - Hartford Industrial Co. (Taiwan) for off-road vehicle manufacturing and US export.
• - Major US retailers like Lowe's for golf cart and UTV distribution.
• - GoTo Group (Indonesia) for initial robot supply and Southeast Asian market entry.

The most significant quantifiable partnership is with Contemporary Amperex Technology Co., Limited (CATL), which directly impacts Kandi's subsidiary, China Battery Exchange. This agreement positions China Battery Exchange as an official equipment supplier for CATL's "Ten Thousand Station Plan."

The CATL deal is a major strategic pivot, moving Kandi Technologies Group, Inc. deeper into high-margin infrastructure solutions, which is helping the company improve profitability; its gross margin reached 45.2% in the first half of 2025, up from 31.7% in the same period of 2024.

The distribution network with US retailers is vital for the core vehicle segment. Even with a revenue dip in H1 2025, the company maintained a strong balance sheet, holding $256.77 million in cash, restricted cash, and time deposits as of June 30, 2025, which supports these capital-intensive collaborations.

The partnership with DEEP Robotics signals a clear move into higher-value products, aiming to capture market share in specialized robotics for North America, a segment that requires significant R&D investment, which saw expenses rise year-over-year in prior periods.

Finance: Review the Q4 2025 cash flow projection based on expected CATL order fulfillment timelines by next Tuesday.

Kandi Technologies Group, Inc. (KNDI) - Canvas Business Model: Key Activities

You're looking at the core engine driving Kandi Technologies Group, Inc. right now, which is a mix of established EV manufacturing and aggressive new tech bets. Here's the quick math on what they are actively doing to run and transform the business as of late 2025.

• - Manufacturing off-road electric vehicles (UTVs, golf carts) in China and Taiwan. The company's 2024 full-year revenue from these vehicles was $116.6 million, making up over 91% of total revenue then. For 2025, projected annual production and sales units for these off-road electric vehicles are set at 36,000 units. Furthermore, Taiwan operations are expected to account for up to 40% of off-road vehicle production in 2025.
• - Research and development (R&D) in battery products, up 48.5% in H1 2025. R&D expenses specifically for a battery product project in the first half of 2025 totaled $2.5 million, which is an increase of 48.5% from the $1.7 million spent in the same period of 2024.
• - Building US-based lithium battery and vehicle production capacity. Kandi Technologies Group, Inc. planned to invest $100 million in the United States in 2025 to establish a lithium battery manufacturing and battery pack facility with an initial annual capacity of 1 GWh. They also planned a $30 million investment in 2025 to set up a U.S. production line for all-terrain vehicles, including golf carts and utility vehicles, with an expected annual capacity of 50,000 units once operational.
• - Developing and commercializing embodied intelligence robotics. Kandi Technologies Group, Inc. announced on November 4, 2025, that its intelligent delivery robot dog solution, built on the Deep Robotics Lite3 platform, has completed key modules and is moving to pilot testing and commercial validation. This is part of a strategic collaboration announced in June 2025 with DEEP Robotics to co-develop security inspection quadruped robots and smart golf equipment for North America. The global quadruped robot market is projected to be worth $2.61 billion in 2025.
• - Optimizing inventory management to drive gross margin improvement to 45.2%. The focus on inventory management within retail channels drove the gross margin to 45.2% for the first half of 2025, a significant jump from 31.7% in the same period of 2024.

The operational focus is clearly shifting capital toward future growth areas while tightening up existing product lines for better profitability. You can see the financial results supporting this push for efficiency in the H1 2025 figures.

Still, the core business is being managed for margin, not necessarily top-line volume, as net revenues for H1 2025 were $36.3 million, down from $59.8 million in H1 2024. The company is definitely prioritizing margin improvement over revenue scale in the near term.

Kandi Technologies Group, Inc. (KNDI) - Canvas Business Model: Key Resources

You're looking at the tangible and intangible assets Kandi Technologies Group, Inc. (KNDI) is relying on to execute its strategy as of late 2025. These are the foundational elements that make the business model work.

Financially, Kandi Technologies Group, Inc. maintained a very strong liquidity profile coming out of the first half of 2025. As of June 30, 2025, the company reported holding $256.7 million in cash and cash equivalents, restricted cash, and certificates of deposit. That's a significant increase from the $126.3 million reported at the end of 2024, giving them substantial dry powder for their planned expansions.

The physical footprint is actively shifting toward North America to mitigate supply chain risks and tariff impacts. Kandi Technologies Group, Inc. has a global manufacturing presence that now includes:

• - The established facility in China.
• - A partnership in Taiwan, where production was expected to comprise up to 40% of off-road vehicle output in 2025.
• - The wholly-owned U.S. assembly and distribution base in Garland, Texas, which officially commenced operations in May 2025.

That Texas facility is a key piece of the puzzle, spanning approximately 74,758 square feet on a 4.56-acre site, designed to handle the complete lineup of electric off-road vehicles for the North American market. This localization effort is critical for speed and competitiveness in the US.

The U.S. subsidiary, Kandi America, is the vehicle for this North American market penetration, supported by the ongoing build-out of the dealer network. While specific dealer counts fluctuate, the focus is on leveraging this local presence for sales and service of their electric off-road vehicles, including models like the Cowboy e10K.

Intangible assets, particularly in the battery sector, are becoming increasingly valuable. Kandi Technologies Group, Inc.'s intellectual property centers heavily on its battery swapping technology. The intelligent battery swapping system is built around nine core modules and boasts key performance metrics like a rapid 90-second battery swap time.

This IP is being monetized through major strategic partnerships. For instance, the subsidiary China Battery Exchange secured its first heavy-truck battery swap station equipment order from Contemporary Amperex Technology Co., Ltd. (CATL) to support CATL's "Ten Thousand Station Plan," which targets 500 stations in 2025 and a long-term goal exceeding 10,000 nationwide.

The planned U.S. lithium battery facility represents a massive planned capital commitment and future capacity anchor. Kandi Technologies Group, Inc. planned to invest $100 million in 2025 to establish this U.S. lithium battery manufacturing and pack facility, targeting an initial annual capacity of 1 GWh. The overall project is structured to eventually reach 3 GWh total capacity across three phases.

Here's a quick look at the key physical and strategic capacity points:

The company also has a strong balance sheet supporting these moves, as shown by the increase in liquid assets from $126.3 million at year-end 2024 to $256.7 million by mid-2025.

Also, Kandi Technologies Group, Inc. is leveraging its IP into adjacent high-growth areas, evidenced by the strategic cooperation with DEEP Robotics to develop smart golf caddy robots and security inspection quadruped robots for the North American market.

Finance: draft 13-week cash view by Friday.

Kandi Technologies Group, Inc. (KNDI) - Canvas Business Model: Value Propositions

You're looking at the core value Kandi Technologies Group, Inc. (KNDI) is delivering across its segments as of late 2025. It's a mix of established vehicle sales and new infrastructure plays.

The company's improved profitability is a key value driver, reflecting operational discipline.

Value propositions center on specific product offerings and strategic positioning:

• - Affordable, all-electric off-road vehicles for consumer and utility use.
• - High-efficiency battery swapping equipment for heavy-duty commercial trucks.
• - Diversified supply chain, with Taiwan production mitigating China tariff risk.
• - Embodied intelligence solutions (smart golf caddies, security robots).
• - Improved gross margin of 45.2% reflecting better product mix and cost control.

For the core vehicle segment, the value is in the product volume and the shift in manufacturing location.

The Taiwan manufacturing expansion was expected to reach up to 40% of off-road vehicle production in 2025, a direct response to tariff risks. Full-scale production for these Taiwan-made UTVs and golf carts was targeted for early 2025.

The battery swapping infrastructure offers speed and fleet optimization. Kandi Technologies Group, Inc.'s system supports battery swaps in under 90 seconds. This is critical as its subsidiary supplies equipment for Contemporary Amperex Technology Co., Ltd.'s (CATL) "Ten Thousand Station Plan," which targets 500 stations in 2025 alone.

The move into embodied intelligence leverages new technology partnerships. The global quadruped robot market, where Kandi is entering with security and golf caddy robots, is projected to start at $2.61 billion in 2025. Kandi projects its smart mobility segment revenue to hit $24.37 million in 2025.

Finance: review the Q3 2025 inventory write-down impact on the 45.2% gross margin by end of October.

Kandi Technologies Group, Inc. (KNDI) - Canvas Business Model: Customer Relationships

You're looking at how Kandi Technologies Group, Inc. (KNDI) connects with the people and entities buying their electric off-road vehicles and related tech as of late 2025. The relationships here are a mix of traditional dealer management, high-level strategic supply deals, and direct-to-consumer retail placement. It's a multi-pronged approach designed to balance volume with margin improvement, which you can see reflected in their H1 2025 gross margin jump to 45.2%.

The core of the North American strategy relies on a structured distribution path, moving away from a purely retailer-heavy model.

• - The dealer-to-retail sales mix has actively improved from a prior ratio of 1 to 9 to 2 to 8 as of June 2025, showing a better-diversified channel structure.
• - The 2025-2029 growth plan anticipates approximately two-thirds of the projected 36,000 off-road vehicle units for 2025 will be sold in North America.
• - Kandi America, the U.S. subsidiary, collaborates with U.S.-based distributors and sales partners, with leadership focused on expanding this dealer network.
• - The company is investing $30 million in 2025 to establish a U.S. production line in Texas, aiming for an annual capacity of 50,000 units to serve the North American market directly.

The strategic B2B engagement is where Kandi Technologies Group, Inc. locks in significant, often infrastructure-related, contracts. This is about becoming a critical supplier, not just a vehicle seller. The focus here is on the battery swap ecosystem, which is a high-value relationship for future stability.

Direct-to-retailer relationships are key for mass-market visibility, particularly for the lifestyle-oriented off-road products like golf carts. You know this strategy well; getting product in front of the customer is half the battle. The partnership with Lowe's is the prime example here, moving beyond just B2B fleet sales.

• - Kandi Technologies Group, Inc. has a collaboration with retail leader Lowe's for a limited-edition golf cart collection featuring NFL team logos, which launched in the U.S. in late 2024.
• - This relationship is designed to place their four-seat Kandi 4P electric golf cart in a high-traffic retail environment aimed at neighborhood and tailgate use.
• - For context on the retailer, Lowe's reported total sales of $24 billion in Q2 2025.

For components and smaller products, the transactional e-commerce channel is an area of exploration, though specific 2025 performance metrics are less transparent in the latest filings. Management noted they are actively exploring these high-margin direct-to-consumer and e-commerce platforms as part of optimizing their channel structure. While specific revenue from platforms like Amazon isn't broken out, the company's overall net revenues for the first half of 2025 were $36.3 million, showing the current scale of their sales channels overall.

The company is evaluating and optimizing the long-term profitability of its key account partnerships while seeking an optimal balance among brand visibility, market share, and profitability. It's about managing the sales mix to drive that gross margin improvement.

Kandi Technologies Group, Inc. (KNDI) - Canvas Business Model: Channels

You're looking at how Kandi Technologies Group, Inc. (KNDI) gets its products-from off-road vehicles to battery swap tech-to the end user as of late 2025. The channels are definitely splitting between established North American retail and high-growth, direct-to-commercial infrastructure sales in China.

For the North American side, Kandi America is pushing hard on localization and dealer depth. They've got a manufacturing plant in Garland, Texas, which spans over 74,000 square feet. The plan is for this U.S. facility to eventually churn out 50,000 units annually for the North American market. To be fair, building out a dealer network takes time, but the company is banking on this localized production to support its distribution efforts.

The off-road vehicle segment, which made up over 91% of Kandi Technologies Group, Inc.'s total revenue of $127.6 million in 2024, relies heavily on these distribution channels.

The direct sales channel for battery swapping equipment in China is a major focus, leveraging the partnership with Contemporary Amperex Technology Co., Ltd. (CATL). China Battery Exchange, Kandi Technologies Group, Inc.'s subsidiary, is supplying critical hardware for CATL's "Ten Thousand Station Plan," which aims for over 10,000 stations by 2030. The initial order coordination, specifically for heavy-truck battery swap stations, was expected for delivery within three months of August 2025.

Regarding the robotics expansion, while the prompt names Hangzhou Liaowangta, the most concrete recent channel activity points to the establishment of a new subsidiary securing its first order with Indonesia's GoTo in September 2025. This aligns with the broader strategy to expand smart mobility solutions, which are projected to generate annual revenue of $24.37 million in 2025.

Kandi America's distribution strategy for off-road vehicles has involved deep collaboration with local retailers and distributors in the U.S. and Canada. A key example of a major retail partner channel was the limited-edition golf cart collection featuring NFL team logos sold through Lowe's, which launched in the fall of 2024.

Here's a quick look at the projected revenue from the infrastructure and robotics channels for 2025:

• Kandi Technologies Group, Inc.'s battery swapping equipment business is projected to generate revenue of $20 million in 2025 from projected sales of 100 units.
• The smart mobility solutions business, which includes robotics, has a projected annual revenue of $24.37 million for 2025.

Kandi Technologies Group, Inc. (KNDI) - Canvas Business Model: Customer Segments

You're looking at the specific groups Kandi Technologies Group, Inc. is targeting with its pivot toward off-road vehicles and new energy infrastructure. This isn't a one-size-fits-all approach; they are segmenting their market based on geography and product application, which you can see reflected in their 2025 projections.

The primary focus remains on vehicle sales, but the growth incubation areas-battery swap and robotics-are carving out distinct customer bases.

Here's a breakdown of the key customer segments Kandi Technologies Group, Inc. is serving as of late 2025:

• - North American consumers of electric off-road vehicles (UTVs, golf carts).
• - Commercial fleet operators and logistics companies in China requiring battery swap.
• - Golf course and private security industries seeking intelligent robotics.
• - Global manufacturers needing lithium batteries and EV components.

The North American consumer segment is expected to drive the bulk of the vehicle revenue this year. For instance, Kandi Technologies Group, Inc. anticipates selling 36,000 units of off-road electric vehicles in 2025, with approximately two-thirds of those sales targeted for North America. This is supported by the operational start of their 74,758 square foot manufacturing facility in Garland, Texas, which received a $30 million investment commitment for its production line in 2025.

In China, the focus shifts to infrastructure and smart mobility. The commercial fleet operators are the target for the battery swap technology, which is being deployed under Contemporary Amperex Technology Co., Ltd. (CATL)'s "Ten Thousand Station Plan," which aims for 500 stations in 2025.

The financial expectations for these segments in 2025, based on the company's growth plan, are detailed below. Remember, these are projections from the plan issued in late 2024, which management is executing against:

The robotics segment, targeting golf course and security industries in North America, is being developed through a partnership with Deep Robotics. The projected revenue for the related Smart Mobility Solutions business in China for 2025 is $24.37 million, with an expected net profit of $3.9 million.

For global manufacturers needing lithium batteries, Kandi Technologies Group, Inc. is building capacity in the U.S., planning a $100 million investment for a facility with an initial annual capacity of 1 GWh in 2025. Revenue from other product lines, including motors and batteries, is projected to be $18 million in 2025.

It's worth noting the company's overall financial health supports these customer-facing investments; as of June 30, 2025, Kandi Technologies Group, Inc. held $256.77 million in cash, restricted cash, and time deposits.

Finance: review the Q3 2025 pipeline against the projected $220 million full-year revenue target.

Kandi Technologies Group, Inc. (KNDI) - Canvas Business Model: Cost Structure

You're looking at the core expenditures Kandi Technologies Group, Inc. (KNDI) is facing as it executes its 2025-2029 growth plan. The cost structure is heavily influenced by planned capital deployment for North American localization, alongside operational costs from its existing manufacturing base.

The company has committed to a significant capital expenditure planned for US expansion, totaling $130 million, announced in October 2024 as part of its five-year forecast. This investment is specifically earmarked for developing production lines in the U.S. to enhance supply chain resilience against tariffs.

Operational costs show a mix of fluctuating Cost of Goods Sold (COGS) tied to sales volume and targeted increases in research and development. For the first half of 2025 (H1 2025), the Cost of Goods Sold (COGS) was $19.9 million. This figure represented a significant decrease of 51.3% compared to the $40.9 million in COGS for the same period in 2024, primarily due to corresponding lower sales volumes.

Investment in future products drives up specific operating expenses. The R&D investment for new battery and robotics products is clearly visible in the H1 2025 figures. Research and development expenses reached $2.5 million for the first six months of 2025. That's an increase of 48.5% over the $1.7 million spent in H1 2024, driven by a battery products R&D project. This aligns with the broader strategy to diversify into embodied intelligence, including co-developing intelligent golf caddy robots and security patrol quadruped robots.

The company's selling and marketing efforts also represent a key cost center, though it was scaled back in H1 2025 relative to the prior year.

Here's a quick look at key H1 2025 expense items:

• Cost of Goods Sold (COGS): $19.9 million.
• Selling and marketing expenses: $4.5 million, down 35.8% from $7.0 million in H1 2024.
• Research and development expenses: $2.5 million, up 48.5% from H1 2024.
• Total operating expenses (H1 2025): $18.3 million, a decrease of 21.4% from $23.3 million in H1 2024.

Regarding manufacturing and logistics costs across three major geographic regions, the cost base is spread across operations in China, Taiwan, and the developing U.S. footprint. The company expects Taiwan to account for up to 40% of its off-road vehicle production in 2025. The new U.S. facilities, once operational, will shift a portion of the manufacturing cost base domestically to mitigate tariff impacts on goods sold in North America, which is expected to account for two-thirds of off-road vehicle sales.

Kandi Technologies Group, Inc. (KNDI) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers driving Kandi Technologies Group, Inc.'s revenue generation as of late 2025. It's a mix of established product lines facing headwinds and new strategic areas starting to take shape.

The core revenue driver remains the sale of all-electric off-road vehicles (UTVs, ATVs, golf carts), primarily in North America. To give you context, for the full year 2024, sales of off-road vehicles and associated parts reached $116.6 million, which represented over 91% of the total annual revenue for that year. Geographically, the United States and other countries account for the maximum revenue, with China following. Still, the H1 2025 results show a significant contraction in this area.

The company is actively building out other revenue sources, though they are smaller or emerging:

• - Sales of battery swapping station equipment and support solutions, evidenced by securing its first heavy-truck battery swap station equipment order under Contemporary Amperex Technology Co., Limited's (CATL) "Ten Thousand Station Plan."
• - Sales of lithium batteries and EV components, which were cited as part of the reason for the overall revenue decrease in the first half of 2025.
• - Emerging revenue from intelligent equipment and robotics sales, stemming from a strategic cooperation with Deep Robotics to co-develop intelligent golf caddy robots and security patrol quadruped robots for the North American market.

Here's a quick look at the top-line performance for the first half of 2025:

The shift in product mix and inventory management in H1 2025 helped drive the gross margin up to 45.2%, even as total net revenues for H1 2025 were $36.3 million. Also, note the investment in future revenue streams; Research and Development expenses for H1 2025 were $2,500,000.0, which was an increase of 48.5% compared to $1,700,000 in the prior-year period, largely due to a battery product R&D project.

The balance sheet strength provides a cushion for these strategic pivots. As of June 30, 2025, Kandi Technologies Group, Inc. held cash, restricted cash, and certificates of deposit totaling $256.77 million, a substantial increase from $126.3 million at the end of 2024.