Geely Launches Zeekr, a New Premium EV Brand

Geely Automobile Holdings, a Chinese automotive manufacturer, is introducing a new brand focused on premium electric vehicles (EVs). This strategic move aims to secure a portion of the luxury EV market currently led by companies like Tesla and other domestic competitors.

Zeekr's Production and Timeline

The new vehicle brand, named Zeekr, will be produced by Zhejiang Geely Holding Group, Geely’s parent company. Initial deliveries of Zeekr vehicles are anticipated to commence in the third quarter of 2021.

Challenging Tesla's Dominance in China

The launch of Zeekr, initially reported by Reuters and subsequently confirmed by Geely, is positioned as a direct challenge to Tesla’s market position within China. Tesla has experienced significant growth in the region, with sales more than doubling from $2.9 billion in 2019 to $6.6 billion in 2020, as indicated in a recent regulatory filing.

Competition in the Chinese EV Market

However, Tesla isn't the sole competitor in China, the world’s largest EV market. Zeekr will face competition from established domestic start-ups such as Li Auto and NIO, both of which offer luxury car models. Despite remaining the top-selling Chinese auto brand in terms of unit sales for the fourth consecutive year in 2020, Geely reported a 32% decrease in net profits last year.

The Sustainable Experience Architecture (SEA)

The Zeekr marque will be built utilizing Geely Holding’s Sustainable Experience Architecture (SEA). This open-source EV technology is designed to provide driving ranges of up to 435 miles (700 km) and incorporates advanced smart connectivity features.

Geely intends to implement the SEA architecture across its portfolio of nine automotive brands, including its minority stake in Daimler AG and ownership of Volvo Cars. Furthermore, the company plans to offer the technology to other manufacturers.

Accessibility of the SEA Platform

Eric Li, founder of Geely Holding, stated that the company’s intention is to make the SEA architecture readily available to other automotive companies.

Expanding EV Capabilities Through Collaboration

The SEA platform represents a key component of Geely’s broader strategy to establish itself as a leading provider of EV manufacturing and technology. Last month, Geely and Volvo Cars announced the cancellation of merger plans, opting instead to create a separate entity dedicated to developing next-generation hardware and software for EVs across their brands and for external manufacturers.

This new collaboration will also involve joint procurement of batteries and electric motors.

Joint Ventures and Manufacturing Partnerships

Geely Holding is also preparing to expand its role in contract manufacturing for other automakers. This includes a joint venture with Foxconn Technology Group – a primary supplier for Apple – focused on providing manufacturing services to the automotive industry.

Separately, Geely will collaborate with Chinese tech company Baidu to develop EVs utilizing the SEA platform. Baidu will contribute its expertise in intelligent driving technologies, including autonomous driving systems.

Investment in Zeekr

Zeekr will operate under a joint ownership structure, with the subsidiary holding a 51% share and its parent company possessing 49%. A combined investment of 2 billion yuan ($307 million) has been allocated to the venture.