Shanghai, December 17 (Gasgoo.com) U.S. automaker ZAP Inc. said today that it has set up a joint venture for making electric vehicles (EV) in eastern China, called ZAP Hangzhou, media reported.
The venture plans to design and make electric vehicles and develop related technology for the China market, by combining ZAP's intellectual property and EV technology with the electric metering expertise of China's Holley Group, the world's largest producer of electric power meters.
The companies plan to use their knowledge of the local Chinese market to target opportunities for electric vehicle growth within China's vehicle fleets.
ZAP Hangzhou will begin installing its manufacturing operations at Holley's Hangzhou facilities soon. The JV is ZAP's second in Asia this year, after a newly built joint venture with a Malaysian battery maker.
Santa Rosa, Calif.-based ZAP outsources its manufacturing and buys its batteries from outside vendors. The vast majority of ZAP's vehicles are produced in China, with assembly taking place in the U.S.
The U.S. firm's manufacturing is expected to continue in China, with a long-term goal of selling EVs there, and may continue working with Youngman Automotive, possibly as a partner or licensor.
