Zeekr considers production in Europe

The Chinese electric car brand Zeekr is considering building its vehicles in Europe. This would allow the company to avoid EU import duties. However, Zeekr is not planning its own plant in Europe, but would use the production facilities of its parent company Geely.

Since the beginning of July, all Zeekr vehicles imported into the EU from China have been subject to a special duty of 19.9 per cent, which stands in addition to the regular duty of 10 per cent. This significantly restricts the competitiveness of the young high-end brand from the Geely Group. The decision on whether the duty will be finally introduced is to be made in November.

“We are actively proceeding with localization work in Europe and we will make an announcement on it at the right time,” said Andy An, Chief Executive Officer of Zeekr, in an interview with Bloomberg News.

One advantage Zeekr has over other Chinese manufacturers is that its parent company Geely has been active in Europe for years and has owned the Swedish manufacturer Volvo since 2010. Together with Volvo, Geely has also launched the electric brand Polestar. In addition, Geely bought half of Smart in 2022 and now operates the brand in a joint venture with Mercedes-Benz.

Thanks to Geely’s strong European presence, Zeekr has access to Geely’s resources in the EU. In concrete terms, it is therefore conceivable that Zeekr vehicles could be built in Volvo’s factories in Sweden and Belgium in the future. Geely also has a site for its subsidiary London Electric Vehicle in the UK. The company manufactures the famous London taxis, but would also like to get involved in other segments following a reorganisation.

With regard to the new tariffs imposed by the EU and the USA, Andy An, who is also President of the Geely Group, said: “I personally express my regret over the introduction of these policies. I think their decisions are not right. They will have a certain impact on Zeekr’s international development.”

Meanwhile, Zeekr is accelerating its international expansion and plans to start delivering vehicles in key markets in the Middle East, Latin America and Southeast Asia this year. Sales in Japan and South Korea are also expected to start next year, according to Andy An.

bnnbloomberg.ca