China's Geely targets premium EV market with new startup

Chinese automaker Geely has launched a high-end luxury electric vehicle startup named Zeekr hoping to tap into similar markets as rivals Tesla, Apple and Nio.

The company was formed towards the end of March and its first deliveries are planned for the third quarter of 2021 with production being undertaken by its parent company Geely Holding under a light asset strategy.

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Zeekr's goals are to deliver a new electric vehicle to market each year in the coming five years, inline with targets set by other automakers breaking into the EV market, such as VW.

Estimated starting costs for Zeekr vehicles are around ¥300,000 (€38,407) as the group hopes to capitalise on the affordable EV market its main competitors are also trying to break into.

Currently, a number of technological hitches, such as inefficient battery technology, are preventing many EV automakers from making the prices of their cars accessible to everyone. There are also a number of pitfalls currently facing the industry, such as a semiconductor shortage or the threat of declining lithium supply.

Reuters reports that Flynn Chen, Zeekr’s vice president, said the brand will explore new sales and marketing methods, including allowing customers to subscribe to car-using rights and offering a stake in the company to car buyers.

Zeekr will use Geely Holding Group’s leading Sustainable Experience Architecture (SEA) and will include its own battery technologies, battery management systems, electric motor technologies and electric vehicle supply chain support.

Utilising this technology will be able to offer continuous software updates throughout the vehicle's lifetime.

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The brand will also initially be limited to just China, with the company eventually looking at exploring export opportunities to satisfy the global market.

The brand also plans to open up 100 venues this year alone and vice president Chen says the company will use a direct-sales model to manage pricing and inventory.

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