A Chinese student named Lin Qi was surprised to discover during her studies on the U.S. West Coast that the so-called "old man's joy" vehicles from her hometown had crossed the ocean to America and become quite popular. "You can find influencer reviews on YouTube—some are exaggerated, but they're certainly memorable," she remarked, amused by the catchy product evaluations.
In fact, these low-speed electric vehicles (LSEVs), affectionately called "old man's joy" by Chinese netizens, have been thriving overseas for years, particularly in North America. Their high cost-performance ratio and regulatory adaptability have created broad application scenarios abroad. This market potential was spotted by Zhejiang Taotao Vehicles Co., Ltd., a company from China's Zhejiang province.
Named after its founder Cao Matao, Taotao Vehicles has become one of the representative Chinese automakers expanding globally. Since its founding in 2015, over 99% of Taotao's revenue has come from overseas markets, with nearly 80% contributed by the U.S. alone.
With a limited product lineup, Taotao grew into a publicly listed company, becoming an "invisible champion" in automotive exports. After listing on the Shenzhen Stock Exchange's ChiNext board in 2023, the company announced plans just two years later for a Hong Kong IPO, seeking a dual "A+H" share listing.
However, this export-oriented company faces significant challenges. Its heavy reliance on a single market makes it particularly vulnerable to trade friction and geopolitical risks. Moreover, the market barriers for LSEVs aren't as substantial as imagined, and Taotao's R&D investment in recent years has declined significantly.
Despite years of overseas success, Taotao remains a traditional automaker with the LSEV label. While its revenue performance is strong, this identity limits its ability to craft compelling new capital narratives. For Taotao, the Hong Kong listing appears more about prestige than financing.
1. The Third-Generation Entrepreneur Taotao Vehicles bears clear marks of a family business in its name and origin story. Cao Matao hails from a business family in Jinyun County, Zhejiang—a true third-generation entrepreneur. His grandfather Cao Guicheng built the family fortune, while his father Cao Yuejin inherited and expanded the business into Taotao Group.
Though not directly involved in vehicle manufacturing, Taotao Group's core businesses in hardware casting and auto/motorcycle parts are closely tied to the automotive supply chain. Unlike his predecessors' traditional approach, Cao Matao had clearer, more direct vision. Legend has it he identified the LSEV opportunity during a U.S. trip with his father and decisively entered the industry.
With strong family backing, Taotao Vehicles was established in 2015 with RMB 30 million in registered capital—RMB 28.5 million from Cao Matao (funded by his grandfather) and RMB 1.5 million from Taotao Group. Beyond capital, the family's business network paved Taotao's early market entry, especially leveraging established North American channels.
Taotao's prospectus reveals five asset acquisitions, three equity purchases, and free transfers of trademarks and patents from related parties like Taotao Group. These transactions totaled RMB 101 million. Technical and production support also came from Taotao Group, including free transfers of 22 patents and shared facilities.
2. The Allure of Overseas Markets While family support provided the foundation, Taotao's unique market positioning became its lifeline. "Abandoning China's red ocean market to focus on high-value overseas markets has been Taotao's survival strategy," noted an industry analyst.
Taotao's product lines span four brands: TAO MOTOR, premium DENAGO, mass-market GOTRAX, and the newly launched tech-focused TEKO. The company positions itself as a high-tech enterprise in "new energy smart mobility," producing electric golf carts, bikes, scooters, balance bikes, along with fuel-powered ATVs and dirt bikes.
Its signature "old man's joy"—electric golf carts—priced at $7,995-$10,995, undercut U.S. brands by about $2,000, driving strong performance. From 2022 to July 2025, revenue grew from RMB 1.77 billion to RMB 2.07 billion, with net profit margins exceeding 10%.
Key to U.S. success was channel conversion. After nearly a decade in North America, Taotao built robust distribution: 520+ dealers, 600+ retailers, and placements in Walmart and Target, plus e-commerce integration. This omnichannel approach typifies Chinese LSEV makers' overseas expansion.
Data from Frost & Sullivan ranks Taotao second globally in LSEVs by 2024 revenue (8.4% share), though trailing the leader by 29.8 percentage points. However, another report suggests China's top four LSEV makers all exceed RMB 10 billion revenue—potentially placing Taotao fifth globally, revealing possible overconfidence in market positioning.
3. Hong Kong Listing: Not About Money? Taotao's quick pivot to Hong Kong just two years after its A-share listing raised eyebrows. With RMB 1.34 billion cash and just 19.6% debt ratio by July 2025, financing seems unnecessary. But as a U.S.-dependent exporter, Taotao needs contingency plans.
In June 2024, a U.S. alliance petitioned for anti-dumping/countervailing duties on Chinese LSEVs, including Taotao's golf carts. Though contested, risks persist. Taotao is expanding factories in China, Southeast Asia, and now the U.S., increasing capital needs. Additionally, Hong Kong's international system could hedge currency risks.
Simultaneously, Taotao has aggressively entered humanoid robotics, partnering with U.S.'s K-Scale Labs, investing in Shanghai Kepler Robotics, and collaborating with Unitree Robotics—leveraging its overseas channel expertise. The market responded enthusiastically: 138 institutions joined a July conference call, and shares rose 150% in two months (240% year-to-date).
Yet financials reveal concerns. From 2022-2024, Taotao's sales/marketing expenses (RMB 254-313 million) dwarfed R&D by 2.5-4x. By 2025 H1, its 2.81% R&D ratio lagged the 5.03% industry average. While sales strength is an asset, weak innovation threatens sustainability. The robotics buzz must translate to tangible business benefits.
Most critically, geopolitical risks loom over Taotao's U.S.-centric model, demanding long-term strategic resilience.
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