Gelonghui, January 31,丨Taotao Auto Industry (301345.SZ) was recently surveyed by investors and asked, “Has the US factory started organizing production now? Why did you choose to build a factory in the US?” The company replied that at present, the company's electric golf cart products have begun to be organized in small quantities at the US factory.
Choosing to build a factory in the US mainly has the following points: 1) Considering the large size and high freight costs of electric golf carts, localized production can effectively reduce transportation costs; 2) As an important position in the global electric golf cart market, localized production can respond more quickly to market demand, such as meeting the needs of local American consumers for windshields, cushions, wheels, etc.; 3) Choosing to manufacture in the US is conducive to increasing the “Made in America” element, effectively increasing the company's brand's penetration into the US market and acquiring local consumers Trust.
Based on cost, market response speed, and localized production considerations, the company chose to set up a factory in the US. This decision will help enhance the competitiveness of the company's electric golf carts in the US market and effectively and quickly gain market share. At the same time, the increase in demand in the US market will also bring more growth to the company's electric golf cart business.