Cathaya has made the investment with the intention of creating a new company called Zap Jonway that will combine Zap’s EV experience with Jonway’s auto manufacturing capabilities to accelerate EV production while opening new markets in China’s growing auto industry.
Cathaya invested in Zap last year with the objective of realizing this opportunity, following which Zap has been working on developing EV products for the partnership with Jonway and towards the finalization of this acquisition.
The company’s investment to help the growth of EV market in China is in line with the country’s goal to reduce carbon emissions by 40 to 45% in 2020 compared with 2005.
Dr Priscilla Lu, founder of Cathaya Capital, said: “Together these two companies with their complementary strengths form a new company reinforced by EV technology, mass production manufacturing skills, a strong sales presence in China, and access to international markets.
“The new team is focused on delivering revenues and profits while expanding international market presence with quality products aimed at addressing new market demands for alternative energy vehicles.
“We are pleased with China’s commitment to reduce pollution and the incentives being put in place that encourage adoption of EVs. With our new company Zap Jonway, we are well positioned to address this stimulated market.”
