SANTA ROSA, Calif.,
July 31, 2014 /PRNewswire/
-- ZAP (ZAAP), an Electric Vehicle (EV) automotive company
incorporated in California and
headquartered in Santa Rosa,
California, and its subsidiary Jonway Auto aligns its
companies' strategy and priorities to fully utilize the
comprehensive multi-billion dollar EV stimulus program announced by
the Chinese government on July
14th by China's
General Office of the State Council. This announcement commits
the central government to implement a comprehensive macro program
that is inclusive of EV rebates, sales tax and license fees
elimination, electric charging infrastructure installation mandates
as well as electric power pricing incentives to stimulate EV market
adoption through to the year 2020, thus extending another five
years from the 2015 programs announced in prior
years. http://www.gov.cn/zhengce/content/2014-07/21/content_8936.htm
Chinese central government has laid out the plan, policies and
priorities in this recent announcement for an overall EV stimulus
program in China that aims at
promoting mass market adoption in the urban cities where fuel
consumption and pollution problems are the most
prevalent. This creates favorable macro-economic drivers,
policies that accelerate EV charging infrastructures and tax
incentives and fuel pricing that favors EV, including specific
programs that require government vehicle purchasing quotas to
allocate a minimum of 30% of its new vehicles to be full
electric. Besides the already in place "free" new auto license
registration for EVs, which in cities like Shanghai has been more than US$20,000 for new vehicle registrations priced
under an auction scheme, there are now other additional
stimulus programs offered to buyers of full electric
vehicles, whether the buyers are individuals, corporations or
leasing companies, starting September
1, 2014. This includes elimination of automobile sales
tax for EVs compared to gasoline or hybrids, which is 8.5%, and
also the elimination of consumer tax for the manufacturers which
ranges from 6% to 10% depending on EV product types and class.
Other policies stated by this announcement are requirements for
parking garages for building and public areas to install charging
stations, with improvement and upgrades from the State Grid to
support fast charge. The announcement of deregulation in
installation of charging systems where private enterprises can now
install charging stations in urban developments or parking garages,
and provide charging facilities in public areas will greatly
stimulate deployment of charging systems in the cities. This opens
up the industry where previously only the State Grid can install
charging stations and charge users for the electric power, now
private companies can do so. The central government also
announced reduction of subsidies for gasoline fuel and tapering
this down to zero. There will also be pricing policies for
charging electric power at private charging stations and the
re-pricing of electricity usage, favorably catering to EVs, in
order to drive market adoption.
ZAP and Jonway Auto are revamping Jonway Auto's factory
facilities to deliver Electric Vehicle products as its mainstream
business and taper off the gasoline car business of Jonway Auto in
order to focus the business only on EVs. Already in place are
2 production lines that are producing more than 50 vehicles a day
per line as of June 2014, and ramping
to 100 per day per line by 3Q2014. The EV SUV and EV minivans from
Jonway Auto are well positioned in the EV market and uniquely
offers the most cost competitive EV products in SUV and minivan to
buyers in China today, given its
larger size and range. With the already type approved EV SUV
and the soon to be available type approved EV minivan, these EV
licensed products could be eligible for up to US$20,000 per vehicle from the central government
and local governments' rebates on a per EV basis, depending upon
the range between recharges. Today these models are being
re-configured for mass production to support optimal eligibility
for rebate and performance efficiency. EVs with ranges of over
250Km are eligible for up to US$20,000 in rebate from just the central
government, not counting the local government rebates, and EVs with
ranges of over 150km in range are eligible for US$10,000 in rebate from the central government,
and then would scale up in rebate as the range efficiency
improves. ZAP and Jonway's EV minivans in particular will be
aiming for getting to a price point that is below the gasoline
version in price for its lithium EV product models after the
central government's rebate. Therefore, ZAP and Jonway Auto's
EV minivan will give city delivery owners savings in not only
operational fuel costs but overall cost of ownership either through
leasing or purchase. Where there is local government
subsidies in the larger cities like Hangzhou, Shenzhen, Guangdong, Shanghai, Tianjin and Beijing, the total rebate could result in
little to no cost to the buyer after receiving both central and
local government subsidies.
The new models of EV SUV and EV minivan to be unveiled in
October 2014, will specifically be
engineered and configured to target China's stimulus program, and aims to achieve
the ZERO cost ownership threshold for the EV minivan, and "less
than gasoline" cost threshold for the EV SUVs; thus, fully
leveraging the financial stimulus that is in place in China through 2020.
About ZAP and Jonway Auto
ZAP and Jonway Auto designs and manufactures quality, affordable
new energy and electric vehicles (EVs). Jonway Automobile has
ISO 9000 manufacturing facilities, engineering, sales and customer
services facilities in China, ZAP
Jonway has production capacity of up to 50,000 vehicles per year,
and has established sales distribution network in China. ZAP, an early pioneer of EVs, brings to
both companies a broad range of EV product technologies that is
applied to the new product lines. ZAP Jonway is headquartered in
Santa Rosa, California and Jonway
Auto is located in Zhejiang
Province of the People's Republic
of China. Additional information about ZAP Jonway is
available at http://www.zapworld.com.
This press release contains certain forward-looking
statements is defined in the Private Securities Litigation Reform
Act of 1995. The words "anticipate," "believe," "estimate,"
"expect," "intend," "plan," and similar expressions that may tend
to suggest a future event or outcome are not guarantees of
performance, which cannot be predicted or anticipated. These
forward-looking statements are based largely on expectations and
are subject to a number of risks and uncertainties, many of which
are beyond the control of the Company. Actual results could
differ materially from these forward-looking
statements.Contact:
Michael Ringstad
Mringstad@zapworld.com
707-525-8658x104
SOURCE ZAP and Jonway Auto