Chinese electric vehicle manufacturer Zeekr is making its way into the European market, leveraging the success of its sister brands like Volvo Car AB. With the backing of billionaire Li Shufu's Zhejiang Geely Holding Group, which also includes a stake in Mercedes-Benz Group, Zeekr is confident in its ability to gain traction in Europe. The company recently started sales of two models in Europe, with plans to introduce seven more by 2025.
Zeekr recognizes the advantage of being associated with Geely, which has established its reputation through brands like Volvo, Polestar, and Lynk & Co. This association acts as a trust mark for European consumers who may be unfamiliar with a Chinese automaker. To bridge the gap and familiarize customers, Zeekr has assembled a team of more than 500 designers in Gothenburg, Sweden.
However, Zeekr's European ambitions could face challenges due to trade tensions. The European Commission has launched an investigation into potential unfair state support of Chinese EV makers, which China has criticized as "naked protectionism." If the investigation leads to tariffs, it could impact almost $7 billion worth of electric car and van imports from China.
Despite these potential hurdles, Geely is determined to make Zeekr's entry into Europe a success. As Zeekr shares the same underpinnings as Volvo and Mercedes models, it allows for economies of scale and streamlines production. Geely has been building its European presence since acquiring Volvo Cars in 2010 and has established partnerships with companies like Volvo AB and Lotus. The company is also finalizing a deal with Renault SA to collaborate on combustion-engine assets.
Zeekr aims to sell 140,000 cars in China this year and increase that number to 650,000 by 2025 as it expands into international markets. The first Zeekr deliveries in Europe are scheduled for November, starting in Sweden and the Netherlands, with Germany being the most recent market to launch sales.
By expanding its model portfolio, Zeekr hopes to fuel growth not only in the Chinese market but also in Europe and other regions. While North America is a separate discussion, Zeekr is also considering the potential opportunities in that market.
In conclusion, Zeekr's entry into the European market is an important step for the company and its parent company, Geely. Despite potential trade challenges, Zeekr aims to establish itself as a trusted Chinese EV brand by leveraging the success and reputation of its sister brands in the Geely portfolio. With an aggressive sales target and plans to expand its model offerings, Zeekr is poised to make its mark in Europe's rapidly growing electric vehicle market.