Chinese EV Brand Zeekr Eyes European Manufacturing To Avoid EU Tariffs: Report
Chinese auto conglomerate Geely’s luxury EV brand Zeekr Intelligent Technology Holding Ltd (NYSE:ZK) is reportedly exploring manufacturing cars in European factories associated with its parent company to circumvent European Union tariffs and expand its global presence.
Currently, all Zeekr vehicles are produced in China and face a 19.9% duty on EU imports, reported Bloomberg.
Zeekr Chief Executive Officer Andy An stated in an interview that they are actively working on localizing production in Europe, with plans to utilize existing facilities within the Geely group or its European partners rather than building new factories.
Local manufacturing in other regions is also being considered. Geely has Volvo Cars AB (OTC:VLVCY) plants in Sweden and Belgium and a London Electric Vehicle Co. base in the U.K.
Zeekr’s potential move to local manufacturing aims to mitigate the impact of escalating political tensions and increased tariffs on China-made cars in the EU, U.S., and Turkey.
Zeekr is accelerating its international expansion, with deliveries beginning this year in the Middle East, Latin America, and Southeast Asia.
Also Read: China’s Geely Targets South Korea For Premium EV Debut By 2026: Report
Sales in Japan and South Korea are expected to start next year. The company went public in the U.S. in May, but its stock has declined, losing about $2.5 billion in value as global EV demand slows.
Despite this, An remains optimistic about achieving profitability by Hong Kong accounting standards this year. The company delivered 20,106 vehicles in June, marking an 89% increase compared to the same month last year.
Zeekr launched its 009 minivan in Hong Kong, featuring single-motor versions with a range of up to 740 kilometers and starting at 439,000 yuan, the report highlighted.
To promote sales, Zeekr offers a referral program with incentives like one year of free private jet travel for those who refer five buyers of the 009 Grand version.
The 009’s design aims to combine luxury and technology, inspired by airplane interiors and featuring massage seats and individual climate controls.
Price Action: ZK shares are trading lower by 1.89% at $17.97 at last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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