Zap Says It Has Order for 100 Electric SUVs - to be Delivered to South Korea

Zap Says It Has Order for 100 Electric SUVs - to be Delivered to South Korea

By John O'Dell February 26, 2010

Northern California-based EV importer and developer Zap, which last month announced a partnership with a South Korean optics company to bring electric vehicles to that country, said this week that it has received its first order - for 100 electric SUVS.

The vehicles will be jointly built by Zap and Chinese automaker Zhejiang Jonway in China - based on the Chinese company's A380 SUV model - and then imported into South Korea by Zap's partner there, Samyang Optics Co.

It's all a bit convoluted, as Zap's deals often are, but there's some logic and business potential.

Samyang, a manufacturer of lenses for closed circuit TV security systems, may be an odd choice for a partner to import and sell EVs, but it does know South Korea. It and Zap both want to take advantage of a growing market there for electric vehicles as the government moves to offer subsidies and tax incentives,

Still, Zap can't seem to break into the big time and its ongoing losses and small size have prompted analysts at IHS Global insight to wonder about the chances a "small electric vehicle distributor and a relatively unknown partner company" will be able to compete successfully against South Korean giant Hyundai, its Kia subsidiary and other entrenched automakers such as GM Korea and Renault-Samsung.

It's a good question.

John O'Dell:  is an AutoObserver Senior Editor. Follow @AutoObserver on Twitter.