Chinese Brand Zeekr Considers Producing Cars In Europe

Every time I’ve talked to Zeekr, they’ve been relatively up front with how geopolitical tensions and a cold (trade) war have poured water on the brand’s aspirations to expand outside of China. Add in a new EU tariff of 19.9% on Geely-made cars imported from China, and the Sino-Swedish spin-off of Geely had to go back to the drawing board if it truly considered European sales as part of its plan for global expansion.

According to a Bloomberg report, the brand is actively considering European production for its models. Zeekr CEO Andy An told the outlet that, “We are actively proceeding with localization work in Europe, and we will make an announcement on it at the right time,” which could be interpreted as the brand is a little further along than just the mulling stage.

This is a direct result of the EU’s new tariffs on imported EVs from China. The EU alleged unfair subsidies for Chinese EV brands, and it levied double-digit tariffs on these vehicles, no matter if they were Chinese native brands like BYD or Zeekr or European models imported from China, like the new Mini Cooper Electric or BMW iX3. Even after petitions from China, the tariffs have only reduced a pittance, meaning that if Chinese brands wanted to get around European Union tariffs, they’d have to produce in the European Union.

However, unlike brands like BYD, which would need time to build a factory, Geely and Zeekr won’t need to do that. In fact, if Zeekr does move forward with its European manufacturing and localization plans, it will be with existing Geely-owned (via Volvo) plants. Plants in Sweden and Belgium will soon produce the Geely-related Volvo EX30, which is based on the Zeekr-developed SEA (Sustainable Experience Architecture) platform. 

Zeekr is very serious about its international expansion plans. This month, Zeekr facelifted its 009 van and introduced it and the Zeekr X crossover (both converted to right-hand-drive) to markets like Thailand and Hong Kong. It took the wraps off a Model Y fighter, the Zeekr 7X, another car that looks ready to battle in international markets.

This is more than just pride or a desire to see a Chinese brand truly go global. Like other EV startups, Zeekr needs to generate volume to get out of the hole and turn profitable. The brand is nearly there. Its Q1 losses were down 18% to a mere $278 million. It plans to turn a profit by the end of the year. 

Of course, it’s still unclear if Zeekr will ever come to the United States. This is an election cycle, and neither candidate is fond of Chinese-produced EVs. But, importing from Europe would help Zeekr avoid the 100% tariff and stigma of a Chinese-made vehicle. The Volvo EX30 is delayed because its US models will now come from Belgium instead of China. Could we end up getting a Zeekr X alongside the EX30?

We’ll have to wait and see.