Zap’s electric vehicles may go into high-volume production in China as a result of the company’s pending 51% stake in Jonway Automobiles in Zhejiang province.
This will be a major change for the 50-employee Santa Rosa pioneer of Zero Air Pollution vehicles. The new company will be called Zap Jonway and will manufacture and sell both gasoline and electric vehicles, North Bay Business Journal reported.
Priscilla Lu of Cathaya Capital, one of Zap’s largest investors, said, "Incentives in China are very aggressive. China wants to be the world leader in electric vehicles. The government subsidizes electric vehicles at about US$9,000, and large cities like Beijing and Shanghai add another US$9,000. That’s over three quarters of the cost, and the subsidies go to the manufacturer, not the car buyer."
Jonway already sells an electric SUV manufactured in its plant in Sanmen county, which will be expanded and enhanced to manufacture Zap vehicles.
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