ZAP and Zhejiang Jonway made a splash last week that should excite EV fans left disappointed by the 2010 North American International Auto Show. Both automakers agreed on a partnership that would develop an EV SUV for distribution in the near future. ZAP would develop the EV drive system and components that would be used in a Zhejiang Jonway SUV. The Chinese market is nothing new for ZAP, which started a partnership in 2009 with Holley Group and Better World to develop EV infrastructure in China.
ZAP and Zhejiang Jonway will use the latter’s A380 SUV as the basis for its electric-powered SUV. This five-door SUV will use a lithium-ion battery pack and an AC electric motor that are capable of meeting international standards for electrical charging. Once this drive system is complete at ZAP’s California-based research facility, Zhejiang Jonway anticipates increasing its production of the SUV beyond the meager monthly quotas of its traditional counterpart. The Chinese automaker states that it has enough production capacity to make 50,000 vehicles per year though initial runs of the A380 EV SUV will be smaller.
Zhejiang Jonway and its parent company, Jonway Group, possess sufficient capacity for a global distribution of the A380 EV SUV. The Jonway Group sold in excess of 120,000 motorcycles, ATVs and passenger vehicles in 2009. The company has 600 auto dealerships in China alone with satellite offices in the United States and the European Union. The ZAP/Zhejiang Jonway partnership is designed to yield initial success in China before fully using the company’s global network. Unless the A380 EV SUV experiences technical setbacks, the combination of an attractive design and the fertile mid-sized SUV market should yield dividends for both partners.
ZAP is leveraging its partnerships with Zhejiang Jonway and Holley Group to break into the growing Chinese auto market. The central government announced recently that its annual production quotas for electric and hybrid vehicles will increase to 500,000 units per year in 2011. The centerpiece of this EV and hybrid mobilization is an $8,800 USD government subsidy per unit produced by Chinese automakers. The China Association of Automobile Manufacturers notes that China surpassed the United States in total car sales with 13.6 million vehicles sold in 2009. These factors create a perfect storm for ZAP’s success in the Chinese market if it can get the Jonway A380 EV SUV on the road.
