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Chinese EV maker Zeekr sweeps into Europe amid subsidy spat

  • The company, part of Geely Holding Group, started European sales of two models just weeks ago and plans to add another seven by 2025
  • The aspirations could hit a roadblock should the European Union impose extra import tariffs on Chinese EVs, after opening a probe last week

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Zeekr electric vehicles bound for shipment to Europe wait at the Port of Taicang in Taicang, Jiangsu province, China, on August 24, 2023. Photo: Bloomberg
Bloomberg

Chinese electric-car maker Zeekr is banking on extra momentum from sister companies like Volvo Car to push into Europe, just as Chinese carmakers’ ambitions in the region move into the cross hairs of global trade tensions.

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The company, part of billionaire Li Shufu’s sprawling auto empire that also includes a stake in Mercedes-Benz Group, started European sales of two models just weeks ago and plans to add another seven by 2025. The aspirations could hit a roadblock should the European Union impose extra import tariffs on Chinese EVs, after opening a probe into state aid last week.

Being part of Li’s Zhejiang Geely Holding Group “is giving us an important head start”, Europe head Spiros Fotinos said in an interview, declining to comment on the EU’s investigation. “Geely has established itself through Volvo, Polestar and Lynk – that adds a trust mark.”
Founded as a stand-alone carmaker in 2021, Zeekr in late June started sales of the €59,490 (US$63,200) 001 sedan and €44,990 X compact SUV models, which compete with Volkswagen AG’s ID.7 and BMW AG’s iX1. To warm European customers to an unknown Chinese carmaker, a team of more than 500 helps design its models in the German city of Gothenburg. The efforts could help set Zeekr apart as BYD, Nio and Great Wall lead a range of Chinese companies taking aim at Europe.
People look at a Zeekr 001 during the 20th Shanghai International Automobile Industry Exhibition in Shanghai on April 18, 2023. Photo: AFP
People look at a Zeekr 001 during the 20th Shanghai International Automobile Industry Exhibition in Shanghai on April 18, 2023. Photo: AFP
Zeekr’s ambitions may stall on souring trade relations. Last week, European Commission President Ursula von der Leyen kicked off a probe into potentially unfair state support of China’s EV makers, a move the country branded as “naked protectionism”. The investigation could hit almost US$7 billion of electric car and van imports with tariffs, possibly by June, according to Bloomberg Intelligence.
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