The picture shows the Zeekr 001 electric vehicle at the Service Trade Expo held in Beijing on August 31, 2023.
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BEIJING—Chinese electric car brand Zeekr sells more than Tesla Zeekr CEO Andy An told CNBC on Wednesday that the company is already operating in parts of China and plans to expand in Europe and Latin America this year.
The strong sales came as Elon Musk’s automaker posted its biggest drop in global quarterly revenue since 2012.
“Our sales in some areas have surpassed Tesla’s. The sales gap between us and Tesla is constantly narrowing,” An said in Mandarin (translated by CNBC).
In the first three weeks of April, Zeekr sold 500 more vehicles than Tesla in Zhejiang province, where Zeekr and its parent company Geely are headquartered. Zeekr also has slightly higher sales than Tesla in Anhui province near Shanghai and Guangxi, an autonomous region in southern China.
This is based on data shared by Zeekr. Tesla did not immediately respond to a request for comment.
Among pure battery-powered electric vehicles priced at least 200,000 yuan ($28,169), Tesla’s Model Y still occupied the best-selling position in China in the first three months of this year, according to data from consumer information website Autohome.
BYD Data shows that Model 3 occupies the second and third positions, while Tesla Model 3 ranks fourth. Data shows that Zeekr’s 001 and 007 sedans ranked 11th and 12th respectively. The company’s 009 multi-purpose electric vehicle is also one of the top five best-sellers in the price category above 500,000 yuan.
MilletThe new SU7 electric sedan starts at 215,900 yuan, slightly higher than Zeekr’s 007 but lower than Tesla’s Model 3.
When asked about the launch of Xiaomi cars, An declined to comment on competitors. But he said the two companies had differences in strategy, culture and resources.
At the Beijing Auto Show, which opened on Thursday, Zeekr showcased a new car structure that provides consumers with 10 to 20 percent more interior space than similar vehicles, An said.
“The car of the future will not be a simple means of transportation, but the center of a smart mobility experience,” he said, noting that in the new space, families can play games or enjoy food.
He said production of the car would begin by the end of this year.
Expanding beyond China
This year, Zeekr expects its overseas sales to boost overall revenue, An said. The company sells in Sweden and the Netherlands and plans to start selling to six to eight more countries in Europe this year, he said.
An said Zeekr is being “actively deployed” in Latin America, without elaborating.
The company is also developing a right-hand-drive vehicle, which it plans to start selling in Hong Kong and Macau soon this year, and then in Singapore, he said.
As major countries encourage people to abandon traditional gas-powered cars, many Chinese companies that have grown up riding electric vehicles in a fiercely competitive domestic market are looking overseas. However, the rapid rise of Chinese electric vehicle companies has also prompted the European Union and the United States to consider taking measures to protect their domestic automobile industries.
When asked about plans to build factories in overseas markets, An said Zeekr was “actively exploring” but could not disclose details. “Now is a period of exploration, because seeing all the uncertainties in the future, we all need to be fully prepared in advance,” he said.
Geely long-term support
Zeekr is made by Chinese auspicious In 2021, the brand will be allowed to tap the resources of the automotive group. Geely owns several brands, including Swedish car brand Volvo, which was previously owned by Ford Motor Co.
An, who is also president of Geely Holding Group and chairman of Geely Automobile Group, said that for automakers to be successful in the long term, talent, technology and capital must be closely integrated. He said advantages in marketing, design or financing alone were not enough for the company to remain competitive.
On the sustainability front, Zeekr says it has initiatives ranging from factory solar to vehicle recycling and has long-term relationships with remanufacturers and raw material companies.
Zeekr has filed for a public offering on the New York Stock Exchange but has not yet announced a listing date. The latest update to its prospectus According to the SEC website, the date is April 12.
When asked about the IPO plans, An declined to disclose specific details and said the company would go public for strategic purposes when market conditions are favorable.
“It’s not just about raising money,” An said. “More importantly, this is a form of corporate governance for Zeekr’s global development and globalization.”
He pointed out that although Zeekr is still losing money, the company has sufficient cash flow and parent company Geely is making profits.
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