Geely’s Luxury Zeekr EV Models Enter European Market, Challenging Leaders
Zhejiang Geely Holding Group, a prominent Chinese automaker known for brands like Polestar, Volvo, and Lotus, is looking to make its mark in the European electric vehicle (EV) market. Geely is introducing its luxury Zeekr EV models, such as the Zeekr 001, in Europe. Despite its ambitions, Geely currently ranks seventh in pure EV sales in the EU, falling behind market leaders such as Volkswagen Group and Tesla.
According to Bloomberg data, Geely shipped around 37,000 units in the first half of 2023, which is less than a quarter of what Volkswagen, the market leader, achieved. This discrepancy highlights the challenges that Chinese EV manufacturers face in Europe, where they have yet to gain significant traction.
Responding to China’s growing influence in the EV market, the EU recently launched an investigation into Beijing’s EV policies. The EU alleges that Chinese state subsidies artificially reduce the prices of Chinese EVs, resulting in their increased presence in global markets. Chinese state media, on the other hand, argues that Europe is fearful of Chinese competition and influence.
It is worth noting that European automakers have also tapped into the benefits of manufacturing vehicles in China by forming partnerships with local automakers. These collaborations allow European companies to take advantage of the lower production costs and gain a foothold in the Chinese market.
To catch up in the EV race, Volkswagen announced in July that it would invest $700 million in Xpeng, another Chinese EV manufacturer. Additionally, Tesla, a dominant player in the global EV market, operates a massive factory near Shanghai, which produced over half of the company’s 1.3 million EVs sold worldwide last year.
As Geely enters the European market with its Zeekr EV models, it faces fierce competition from well-established players like Volkswagen Group and Tesla, as well as other European automakers that have leveraged partnerships and collaborations in China. The success of Geely’s luxury EV models in Europe remains to be seen as the industry continues to evolve and major players battle for market share.
In conclusion, Geely’s foray into the European market with its luxury Zeekr EV models poses a challenge to market leaders. However, the company faces tough competition from established manufacturers and must overcome the current gap in sales volume. As the EU investigates China’s EV policies and both Chinese and European automakers aim to strengthen their positions, the dynamics of the EV market are set to undergo significant changes.
