ZAP and Jonway Auto, jointly with Dong Feng Motor Corporation recently announced in Hangzhou, Zhejiang Province volume orders for mass production of Jonway's EV minivan for 2016. ZAP Jonway's EV minivan, marketed by Dong Feng Motor Corporation under Dong Feng's label received favorable market response after initial delivery of a few hundred vehicles last month, according to the company.
Dong Feng Motor's deputy CEO urged Jonway Auto to prepare to increase manufacturing production to support up to 20,000 of Jonway's EV minivan in 2016. Dong Feng officials estimate up to 100,000 orders of Jonway's EV minivan over the next three years due to strong market demand for EV delivery vehicles in metro cities. Dong Feng Motor stated that the company plans to order more than 20,000 of Jonway Auto's EV minivan orders for 2016.
Current backlog of Jonway's EV minivan is over 10,000, of which approximately a third is expected to be delivered before the end of this year. The slow start in production earlier this year was due to working capital needs which are now partially satisfied by funding and loans from ZAP and Jonway's major shareholders. Additional funding would still be needed to support the large working capital to fully meet the delivery of EV orders for 2016, according to the companies.
The EV minivan market targeting delivery companies in the metro cities is the largest EV market in China and currently with the greatest demand. This is driven by delivery companies whose gasoline vans are currently banned from entering the major cities' highway during rush hour, whereas EV minivans are not. Additionally, EV minivans are not subject to driving on odd and even driving days in cities like Beijing and enjoy waivers for vehicle license fees and consumer tax that are imposed on the gasoline vehicles, according to the companies.