Benzinga | Aug 10, 2021 07:05AM EDT

Kaixin Auto Holdings Plans To Enter The Smaller-Size EV Market In China

Kaixin Auto Holdings ("Kaixin" or the "Company") (NASDAQ:KXIN) today announced plans to enter the smaller size electric vehicle (EV) market in China. Kaixin's new energy vehicle unit has launched development plans focused on smaller EV models in the subcompact and minicompact categories. To speed up the process, the Company has discussed mergers and acquisitions with a number of electric car manufacturers. Kaixin will disclose the results in a timely manner.



Automobiles have been gradually shifting from a symbol of wealth and social status to the fundamental role of transportation tool in China. The rapid development of electric vehicle technology has closed in the technological gap to fuel vehicles and substantially lowered production costs, which has led to more consumption of electric vehicles. In addition, the rise of the younger generation of consumers in Chinese cities, who carry a preference for vehicles of lighter weight and smaller size, has made smaller size electric cars a dark horse in the Chinese automobile market segmentation. Sales of subcompact and minicompact electric cars are forecasted to reach 5 million units in 2025, making it one of the best-selling models in Chinese auto market.