10 • June 2025 • Powersports Business
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Kandi Technologies reports 2024 financial results, launches first U. S.-made vehicle
Kandi Technologies Group, Inc., a manufacturer of electric off-road and utility vehicles with headquarters in China, reported its financial results for the full year 2024 while achieving a significant milestone in its U. S. expansion strategy with the launch of its first locally produced vehicle.
2024 FINANCIAL RESULTS Kandi reported total revenue of $ 127.6 million in 2024, a 3.2 % increase from $ 123.6 million in 2023. Sales of electric off-road vehicles and parts, which accounted for over 91 % of total revenue, rose 8.9 % year-over-year to $ 116.6 million. Geographically, revenue from China grew 80 % year-over-year, contributing to improved sales diversification. Gross profit totaled $ 39.3 million, though gross margin declined from 33.5 % to 30.8 % due to shifts in regional and product mix.
Operating expenses increased to $ 108.1 million, driven by investments in retail expansion, organizational development, and a one-time, non-cash impairment loss of $ 24.1 million. This led to a net loss of $ 51 million compared to net income of $ 1.7 million in 2023. Despite these challenges, Kandi remains focused on strengthening its electric offroad vehicle business and advancing its strategic initiatives.
Kandi Technologies continues to expand in the U. S., with a grand opening at Galaxy Golf Cars and a manufacturing plant in Garland, Texas.( Photo: Kandi Technologies / Galaxy Golf Cars / Facebook)
LAUNCH OF U. S. OPERATIONS In a major development, Kandi’ s manufacturing facility in Garland, Texas, has commenced operations, producing its first electric golf cart. This facility marks a key milestone in
Kandi’ s“ Made in North America” initiative, enhancing its ability to serve the U. S. market. The Garland facility, spanning over 74,000 square feet, will support the production of Kandi’ s complete lineup of electric off-road vehicles, including UTVs and recreational models.
“ The launch of our Texas facility positions Kandi as a local producer of high-quality electric off-road vehicles,” says Feng Chen, CEO of Kandi Technologies.“ This achievement enhances our operational flexibility, shortens delivery times, and strengthens our competitiveness in North America.”
As part of its localization strategy, Kandi has also partnered with CBAK Energy Technology to develop two lithium battery production facilities in the United States, further advancing its domestic manufacturing footprint.
LOOKING AHEAD Kandi plans to continue expanding its geographic reach, product offerings, and supply chain capabilities while investing in innovation to meet growing demand for electric offroad vehicles. With its enhanced infrastructure and localized production, the company is positioned for future growth in the U. S. and global markets.
Transax joins Talon to provide a more connected experience for dealers
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Transax, a connected commerce platform for the powersports industry, has joined Talon Powersports Solutions as a certified API partner. This collaboration will integrate the two systems, helping dealerships perform faster transactions, achieve better data accuracy, and improve real-time inventory access.
STREAMLINING DEALERSHIP OPERATIONS
The API partnership enhances dealership efficiency in several key areas, starting with seamless data flow. Through integration, customer information can now move easily between Transax and Talon’ s dealer management system, eliminating manual
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entry and ensuring accuracy at every step of the sales journey.
Another advantage of the integration is real-time access to inventory and pricing. Dealers can instantly view and act on the most up-to-date information— pulling inventory from Talon into Transax or starting a deal in Transax and pushing it into Talon— reducing transaction times, maximizing efficiency, and closing more.
OPTIMIZING PERFORMANCE Talon dealers utilizing Transax can elevate their experience through the Connected Commerce Platform, which enables them to display payments and financing options on
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every unit, driving more qualified leads and increasing finance application rates. Dealers can send quotes, automate follow-ups, and request payments via text or email, all while tracking activity through built-in CRM tools. With unlimited soft credit pulls, credit applications, and lender integration, combined with Talon‘ s capabilities, dealers can streamline data flow, accelerate deal completion, and keep customers engaged.
“ We’ re excited to partner with Talon to deliver a more connected experience for dealers,” says Jared Dowdy, vice president of sales and strategic partnerships at Transax.“ This integration helps eliminate bottlenecks in the sales process and ensures that data flows
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Transax has joined Talon Powersports Solutions as a certified API partner.( Image: Transax)
accurately and instantly across systems— ultimately improving the customer experience and speeding up deal completion.”
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Harley focuses on financing arm, addresses tariffs and consumer trends in Q1 earnings call
Harley-Davidson offered insight into its strategic direction and business outlook during its first-quarter 2025 earnings call, emphasizing stability within its financial services division, the impact of global trade policies, and evolving consumer behavior. Harley’ s Q1 retail sales were down 21 % globally and 24 % in North America, as the company continues to deal with headwinds from slowing consumer demand and planned lower shipments to dealers.
“ Our first quarter results were ahead of our expectations in many areas, while retail sales in the U. S. were softer than anticipated. We remain focused on navigating the challenging economic and tariff environment through diligent execution of our cost productivity measures, supply chain mitigation, tight operating expense control, and reducing dealer inventory,” says Jochen Zeitz, chairman, president and CEO of Harley-Davidson.“ In addition, we remain committed to driving retail sales through increased marketing initiatives as we enter the riding season.”
STRATEGIC OPTIONS UNDER REVIEW The company reiterated that Harley-Davidson Financial Services( HDFS), its in-house financing division, remains a core component of its business. However, leadership acknowledged interest in exploring structural changes that could better reflect HDFS’ s market value while continuing to support Harley’ s dealers and customers.
“ This is not about divestiture,” says Jonathan Root, president of commercial services and former president of HDFS.“ We’ re looking at ways to improve governance,
Harley offered insight into its strategic direction and tariff impact during its first-quarter earnings call.( Chart: Harley-Davidson)
transparency, and long-term value creation— without disrupting the customer experience or product continuity.”
TRADE POLICY CHALLENGES Executives also highlighted persistent global trade risks, particularly the steep 145 % tariff on certain Chinese components. While Harley has aggressively reshaped its supply chain since 2018— now sourcing approximately 75 % of components from the U. S.— the company warned that some cost pressure remains.
“ We’ ve taken significant steps to diversify our sourcing, but certain policies still pose a challenge,” says Zeitz.“ We’ re ahead of the curve, but we continue to monitor regulatory developments closely.”
RETAIL & CONSUMER SENTIMENT Despite softer-than-expected industry demand in early 2025, Harley-Davidson reported sequential retail improvements in April and expressed optimism for the months ahead.
Internal surveys revealed that elevated interest rates and macroeconomic uncertainty are influencing customer behavior, with many delaying discretionary purchases like motorcycles.
“ We’ re seeing progress, especially in North America, but the environment remains mixed,” notes Zeitz.“ Our focus is on maintaining pricing discipline, targeted promotions, and long-term brand strength.”
RETURN TO ENTRY-LEVEL Harley-Davidson also confirmed plans to re-enter the entry-level motorcycle segment in the near future, signaling a renewed push to attract younger and first-time riders while maintaining its premium image. This move aligns with the company’ s broader ambition to modernize its product lineup and expand its customer base. However, one thing is for sure: Harley is betting on the brand and its ability to attract and retain riders. Delivering them to the bottom line will be another story we will follow closely.