Most affordable electric vehicle brand evolves traditional dealership model
Kandi America, the U.S. subsidiary of Kandi Technologies Group Inc. (NASDAQ GS: KNDI), an international automotive manufacturer, announced the creation of a micro hub showroom designed to increase profit margins for dealerships by minimizing overhead costs and streamlining the customer acquisition process.
“We’ve already received positive feedback on this micro hub showroom concept from several national auto groups, particularly praising our focus on their profitability,” said Rachel Krevat, Director of Client Relations for Kandi America. “As we bring America’s most affordable EV to the U.S. market, we are also ushering in a new way for manufacturers and dealerships to interact that creates a win-win situation for both parties.”
Traditional dealer partners require a significant amount of showroom space, overhead and inventory, which creates a large financial burden and lower profitability for the dealership. Kandi America will take a slimmer approach and only require space for one of each of its EV models and a service area.
This micro hub concept will allow dealer partners to save on showroom costs and house the additional inventory in a separate storage area. Additionally, Kandi America will utilize a replenishment program so dealer partners can save space on the allocated inventory of each model.
“Since hosting our virtual launch event in August, we’ve received a significant amount of interest from dealers around the country that want to help us bring these cars to the U.S. market,” said Johnny Tai, CEO of Kandi America. “Because we are beginning the Auto EVolution, we are striving to do things differently – including how we interact and engage with our distribution network.”
In collaboration with its dealer partners, Kandi America will also offer a no-haggle pricing policy for consumers that simplifies the buying experience and builds trust between the manufacturer, dealership and customer. Kandi America is currently preparing to begin fulfillment and distribution plans in late Q4 2020.