Tariff effect: Zeekr wants to produce electric cars in Europe

The Chinese brand could exploit the Volvo plant (owned by Geely) in Belgium to 'circumvent' the new duties

Zeekr considers building a plant in Europe

Photo by: Zeekr

By: Kevin Williams

Published by: Brian Potter

Jul 23, 2024 at 4:29am ET

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The duties imposed by the EU on Chinese electric cars are beginning to have an effect on the ambitions of Asian manufacturers.

A first example is that of Zeekr, a brand in the Geely universe (which also includes Polestar, Volvo and Lotus, among others) which, according to Bloomberg, is thinking of building a plant in Europe to get around the duty 'problem'.

The Belgium hypothesis

Zeekr CEO Andy An said that the brand is 'actively proceeding with the location of a plant in Europe and will make an announcement at the right time'.

Zeekr 7X

Zeekr

Unlike other Chinese brands, Zeekr may need less time to start work on the plant. In fact, the Geely group is already present in Europe with several Volvo plants, including those in Sweden and Belgium. The latter could be the most suitable plant for the production of the Chinese models, which are based on the SEA (Sustainable Experience Architecture) platform, just like the Volvo EX30 produced in Belgium.

A growing 2024

Overall, Zeekr continues to be one of the most 'vibrant' Asian brands these days. Having revamped the 009 MPV and introduced the X crossover in markets such as Thailand and Hong Hong, the Chinese manufacturer is increasingly cutting its losses.

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According to the latest figures, losses were reduced by 18 per cent to $278 million in the first quarter of 2024, with the company expecting to reach profitability by the end of 2024.

Zeekr X

It has to be said that any expansion of production in Europe would pave the way for more and more Zeekr models in the Old Continent. In this regard, one of the most interesting and recent ones is certainly the 7X, an electric crossover that aims to be a rival to the Tesla Model Y, with 800 volt architecture, a range of 435 miles in the Chinese CLTC cycle and a maximum power output of 636 PS.