EV maker Zeekr posts record revenue, boosts output to take on Tesla, domestic rivals

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The Geely-controlled company’s revenue jumped 36 per cent as deliveries shot up 65.8 per cent in the second quarter

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Visitors learn about a Zeekr 001 at the Spring Auto Show in Yantai, China, on April 14, 2024. Photo: Getty Images

Daniel Renin Shanghai

Published: 7:00pm, 21 Aug 2024Updated: 2:47pm, 25 Sep 2024

Zeekr Intelligent Technology, the premium electric vehicle (EV) maker controlled by Geely Auto, reported record revenue in the second quarter as its refreshed models lured more Chinese customers away from rivals.

Revenue jumped 36 per cent to 20 billion yuan (US$2.8 billion) in the April to June quarter, compared with the first three months of 2024. The figure exceeded the company’s previous record of 16.4 billion yuan in the fourth quarter of 2023 by 22.5 per cent and also beat a consensus estimate of 18.8 billion yuan by analysts in a Bloomberg survey.

Net loss narrowed 10.5 per cent quarter on quarter to 1.81 billion yuan, or 0.95 yuan per share, also beating analysts’ forecast of a 1.04 yuan loss per share.

“Zeekr is emerging as a strong player in the premium EV segment as its cars are viewed as value-for-money products by many customers,” said Gao Shen, an independent analyst in Shanghai. “Competition among the premium brands has intensified after Zeekr and smartphone vendor Xiaomi joined the EV race.”

Zeekr’s deliveries at home and abroad in the second quarter shot up 65.8 per cent to 54,811, compared with the previous quarter. Early this month, the company said it aims to hand off 30,000 units per month in the fourth quarter after its assemblies are expanded and fine-tuned. Zeekr sold 118,685 units in 2023, notching a 65 per cent year-on-year increase.

It has been offering discounts to attract more buyers in the mainland market, where EVs accounted for more than 50 per cent of car sales in July.

“As we progress through the second half of 2024, our core objectives remain unchanged: to continuously invest in research and development, ensuring we stay at the forefront of technological innovation to drive our business forward and deliver long-term value for our shareholders,” An Conghui, Zeekr’s CEO, said in a statement after the company its earnings on Wednesday.