Wonder Auto Technology, Inc. (Wonder Auto) has announced that its subsidiaries Jinzhou Wonder Motor Co., Ltd. (Wonder Motor) and Jinzhou Halla Electrical Equipment Co., Ltd. (Jinzhou Halla) have entered into framework agreements with Jinzhou Wonder Alternative Energy Vehicle Technology Co., Ltd., (Jinzhou AEV). The agreements are for the supply of electric motors to Jinzhou AEV for use in its electric and alternative energy vehicles.
Wonder Auto expects the aggregate value of the agreements to be about $6.13 million.
Under the agreements, Wonder Motor and Jinzhou Halla will supply six models of electric motor products (250w, 350w, 600w, 800w, 7kW and 20kW) to Jinzhou AEV. Initial delivery is scheduled to begin in November 2009, with deliveries to continue during 2010. The company expects to deliver about 1,450 units in 2009 and about 21,500 in 2010, representing aggregate sales revenues about $0.44 million and $5.69 million.
Under the agreement, the company’s electric motor will be used in four models of Jinzhou AEV’s electric vehicles.
Two-wheel and three-wheel light electric vehicles with retail prices ranging from $260 to $500. With a one-charge driving distance of 40km to 70km, these vehicles are positioned as replacements for bicycles and motorcycles.
General purposes rural electric vehicle with retail price ranging from $4000 to $6000. With a payload up to 1500kg or seven passengers, this type of vehicle has a one-charge driving distance of 100km and can reach a top speed of 65km/hour. While its retail price is comparable to that of a gasoline engine vehicle of similar size, its operating cost is estimated to be $400 to $700 lower for every 20,000km driven. Jinzhou AEV’s electric vehicle is positioned as a replacement or alternative to the estimated 35 million gasoline engine vehicle of similar size that are currently being used in rural China.
Two-seat passenger electric vehicle with a retail price of $2000 to $4000 depending on the trim. This model will have a one-charge driving distance of 100km and a top speed of 55km/hour. The vehicle weigh less than 450kg excluding battery and its operating cost is $0.40/100km or less.
Electric taxis with prices ranging from $4000 to $8000. With a top speed of 70km/hour, the one-charge driving distance of these vehicles are 100km if powered by lead acid battery and 300km if powered by lithium ion battery. The fuel efficiency of a typical gasoline engine taxi with a 1.6l engine is about 7 litre per 100km which costs about $6 with the currently retail gas price in China. The total operating cost for 100,000km driven is about $6500 including fuel and maintenance cost. In comparison, the total operating cost of the electric taxis for 100,000km driven will be only about $3000. The electric taxis to be sold by Jinzhou AEV will ship without batteries. A separate local battery servicing and maintenance company will operate a citywide network to charge and replace the electric taxi batteries. Privately owned electric vehicles may also use this network. Jinzhou AEV estimates that the local government will initially issue 200 electric taxi licenses on a trial basis by April 2010.
Qingjie Zhao, the company’s chief executive officer and chairman, is a 60% owner and serves as the chairman of Jinzhou AEV. The transactions contemplated by the framework agreements were approved by the audit committee and board of directors of the company.
“We started the research and development of electric motor in 2007 and the entry into the framework agreements is a milestone for Wonder Auto,” said Qingjie Zhao, chief executive officer and chairman of Wonder Auto. “It demonstrates that Wonder Auto’s electric motor products are entering into the alternative energy vehicle market which we believe has tremendous growth prospective and will play an important role in the future automobile industry. We believe our electric motor products will be recognized by more and more auto manufacturers and significantly contribute to our sales in the coming years. We anticipate our electric motor products to become one of our main products and to contribute to our continued growth and competitive strength.”
Wonder Auto is a China-based manufacturer of automotive electric parts, suspension products and engine components in China.