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Permalink | Email this | CommentsZeekr CEO believes that despite having a presence in the compact car market, German luxury brands are not offering any truly competitive luxury products.
(Image credit: CnEVPost)
German luxury automakers are seeing a loss of share in the premium market in China as they are slow to make the transition to electrification. Now, with the launch of a new electric SUV with strong performance and competitive pricing, this process could be further accelerated.
Zeekr, Geely Holding Group's premium electric vehicle (EV) brand, officially launched its third model, the Zeekr X, at an event in the southwestern Chinese city of Chengdu on Wednesday.
The model is based on Geely's Sustainable Electric Architecture (SEA) and is positioned as an urban sport utility vehicle suitable for adults, children and any accompanying pets, Zeekr said.
(Image credit: CnEVPost)
With a length, width and height of 4,450mm, 1,836mm and 1,572mm respectively, and a wheelbase of 2,750mm, the Zeekr X is a typical compact SUV.
Zeekr hopes to disrupt the compact luxury car market, which is dominated by Mercedes-Benz, BMW and Audi, with the SUV. Andy An, its CEO, said at the launch that the market currently has only luxury brands but no real luxury products.
With the launch of the Zeekr X, compact size no longer means sacrificing space, performance or features, An said.
Zeekr has packed the Zeekr X with a host of features that feel fresh, including facial recognition unlocking, a moveable center screen, electric folding rear seats, and an in-car refrigerator that can provide temperatures as low as -15 degrees Celsius.
(Image credit: Zeekr)
In terms of performance, the dual-motor version of the Zeekr X boasts a combined maximum power of 315 kW and maximum torque of 543 Nm, and can sprint from 0 to 100 km/h in 3.7 seconds.
Even the single-motor version of the Zeekr X can accelerate from 0 to 100 km/h in 5.8 seconds.
This kind of powerful performance from a compact model is not often seen in the Chinese auto industry, and such markets are usually considered niche markets.
However, An said in a media group interview after the launch that the compact market lacks true luxury products and that this needs to be fundamentally changed.
(Image credit: CnEVPost)
An does not believe it is reasonable to judge a model's potential by the existing market landscape, because as long as a car company offers a product that meets demand, the market will get bigger, as proven by Zeekr's first model, the Zeekr 001.
The shooting brake market targeted by the Zeekr 001 was previously seen as having a very small total addressable market in China, but the model was an unexpected success and 71,941 units were delivered in 2022.
The Zeekr X is available in three versions, one starting at RMB 189,800 ($27,610) and the other two at RMB 209,800.
An told media, including CnEVPost, after the event that Zeekr will not launch models priced lower than the Zeekr X.
All three versions of the Zeekr X are powered by a ternary lithium battery pack with a capacity of 66 kWh and a CLTL range of up to 560 km.
The Zeekr X is already taking pre-orders and deliveries will start in June.
In response to a question from CnEVPost, An said the company is targeting 40,000 deliveries of the SUV this year.
In addition to being available in China, the Zeekr X will also be available in Europe. An said there is plenty of room in the global market for compact SUVs.
An mentioned that the Zeekr 001 will also be brought to Europe, without revealing more about when, but said Zeekr will officially unveil its European strategy at the Shanghai auto show in a few days.
The Zeekr 001 was launched on April 15, 2021, and deliveries began in October 2021. On November 1, 2022, Zeekr's second model, the Zeekr 009 MPV, was launched, and deliveries began on January 15.
Zeekr aims to double its sales to about 140,000 units this year. It delivered 15,234 vehicles in the first quarter of the year, and the goal means it needs to deliver an average of about 14,000 vehicles per month next.
($1 = RMB 6.8748)
(Image credit: CnEVPost)
Zeekr aims for 140,000 sales in 2023, to launch 2 new models, CEO says in internal letter
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The Zeekr X from Geely launched in China with 428 hp and 3.7-seconds 0-100 km/h acceleration time. Later, it will enter the European market.
The post Zeekr X launched with 560 km range for 27,600 USD. Coming to Europe appeared first on CarNewsChina.com.
In the first quarter, Zeekr delivered 15,234 units, up 84.86 percent year-on-year, but down 53.08 percent from the fourth quarter.
Zeekr's deliveries continued to rebound in March, although the first-quarter figure was down significantly from the fourth quarter.
Zeekr delivered 6,663 vehicles in March, up 271.20 percent from 1,795 in the same month last year and up 22.14 percent from 5,455 in February, according to data it released today.
In the first quarter, Zeekr delivered 15,234 vehicles, up 84.86 percent from 8,241 in the same period last year, but down 53.08 percent from 32,467 in the fourth quarter.
The decline in Zeekr's deliveries in the first quarter was primarily due to a 21-day production halt at its Ningbo, Zhejiang plant around the Chinese New Year holiday. The plant resumed production on February 1. January 21 to January 27 was this year's Chinese New Year holiday.
The shutdown resulted in Zeekr delivering only 3,116 vehicles in January, a new low since April 2022.
Zeekr was officially launched as an independent company in March 2021, with its first model, the Zeekr 001, launched on April 15, 2021, and deliveries beginning in October 2021.
On November 1, 2022, Zeekr's second model, the Zeekr 009 MPV, was launched, and its deliveries began on January 15.
As of March 31, Zeekr's cumulative deliveries since inception were 93,182.
Zeekr plans to see sales double from last year to 140,000 units in 2023 and will release two new models, its CEO said in an internal letter earlier this year.
The company's next model is expected to be the Zeekr X, which already made it onto a regulatory filing list in February.
Regulatory filing: Zeekr X to be offered in 4- and 5-seat versions
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The Zeekr X will be equipped with a 14.6-inch screen that can move to the front passenger. To debut on April 12.
The post Zeekr X interior officially unveiled in China with a huge screen appeared first on CarNewsChina.com.
The Zeekr X's battery details and range were exposed in China. It will be able to run up to 560 km on a single charge.
The post Zeekr X exposed with a 66-kWh battery and 560 km of range. New photos leaked appeared first on CarNewsChina.com.
The price of lithium, a raw material for batteries, has accelerated its decline, with industrial-grade lithium carbonate falling RMB 7,500 per ton to RMB 302,500 per ton today.
New price agreements between Chinese power battery giant CATL and some local automakers are expected to be reached this month, at a time when battery raw material prices continue to fall.
CATL's lithium rebate policy is progressing steadily, and it is now at the practical stage of signing agreements with some car companies, local media Cailian said today, citing sources close to the battery maker.
These agreements are expected to be reached by the end of this month at the earliest, the source said.
CATL's plan was first reported on February 17 by local media outlet 36kr, which said it is not aimed at all customers, but rather at several strategic customers, including NIO (NYSE: NIO), Li Auto (NASDAQ: LI), Huawei and Zeekr.
The core terms of the partnership include that CATL will settle a portion of the price of power battery supply with car companies at a rate of RMB 200,000 ($28,970) per ton of lithium carbonate for the next three years.
At the same time, car companies signing the partnership will be required to commit about 80 percent of their battery purchases to CATL, according to the report.
CATL management first acknowledged the move during the company's earnings call on March 9.
CATL's lithium sharing plan is not for the purpose of lowering prices, but rather the company already has some mineral resources and does not want to reap windfall profits, its management said.
CATL wants to be able to share with long-term strategic customers and is moving forward with communications to that end, the company said.
Prior to that, Li Auto and NIO both said that they had ongoing discussions with CATL when asked about the topic in their respective earnings calls.
CATL's move comes as lithium carbonate has been falling for months.
Today's quotes for industrial-grade lithium carbonate and battery-grade lithium carbonate in China were both down RMB 7,500 per ton, with the latest average prices at RMB302,500 per ton and RMB 340,000 per ton, respectively, according to My Steel.
($1 = RMB 6.9040)
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CATL's lithium sharing program is not for price reduction purposes, but rather the company already owns some mineral resources and doesn't want to reap windfall profits, its management said.
Last month it was reported that CATL was pushing a lithium rebate program to electric vehicle (EV) makers to drive down the cost of battery purchases for a handful of customers. Now, for the first time, the power battery giant has acknowledged the move.
CATL's lithium-sharing program is not for the purpose of lowering prices, but rather the company already owns some mineral resources and doesn't want to reap windfall profits, its management said Thursday.
The company released its 2022 annual report Thursday and held an investor call afterward in which its management made those comments, according to a meeting minutes it released today.
CATL hopes to be able to share with long-term strategic customers and is moving forward with relevant communications, the company said.
On February 17, local media outlet 36kr first reported on CATL's plan, saying it was not for all customers, but for several strategic customers including NIO (NYSE: NIO), Li Auto (NASDAQ: LI), Huawei and Zeekr.
The core terms of the partnership include that CATL will settle a portion of the price of power battery supply with car companies at a rate of RMB 200,000 ($28,720) per ton of lithium carbonate for the next three years.
At the same time, automakers signing the partnership will be required to commit about 80 percent of their battery purchases to CATL, according to the report.
CATL did not confirm the report at the time, though Li Auto and NIO both mentioned the program in their respective subsequent earnings calls.
In response to the rumored new pricing arrangement, Li Auto and CATL were in negotiations, the EV maker said during an analyst call following the February 27 announcement of its fourth-quarter earnings.
Whether it's lithium price concessions or battery prices linked to raw materials, it would be good news if battery prices could be brought back to a rational range, Li Auto's management said.
Asked about the topic during a conference call on March 1, NIO's management said the company is also in the process of discussions with CATL.
"Of course, we will maintain a long-term strategic relationship with CATL, and we are discussing some new pricing mechanisms with them," said William Li, NIO founder, chairman and CEO.
Battery makers also recognize that they must share the price volatility of battery materials with car companies, Li said at the time.
Back at CATL, the company's annual report, released yesterday, showed it posted a 39 percent quarter-on-quarter increase in net profit in the fourth quarter and further improved gross margins to 22.57 percent.
CATL's management, when asked about the lithium industry overhaul in Yichun, Jiangxi, said it had essentially no impact on the company, and its projects there are moving forward as planned.
The overhaul is mainly aimed at correcting the chaos in local lithium mining, which is beneficial to compliant companies in the long run, CATL's management said.
In Yichun, nicknamed the "lithium capital of Asia," local lithium miners have shut down production for an industry-wide overhaul, Yicai reported on February 26.
Analysts fear that this may bring disruption to the lithium supply, thus halting the downward trend in lithium prices. But such fears have not materialized.
Lithium carbonate prices have continued to fall over the past two weeks, with battery-grade lithium carbonate falling to RMB 367,000 per ton on March 9 and industrial-grade lithium carbonate falling to RMB 332,500 per ton, both one-year lows.
($1 = RMB6.9643)
CATL reportedly cutting battery costs significantly for some clients including NIO, Li Auto
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Zeekr X EV ditches the door handles.
The post Zeekr X New Photos And Colors Unveiled appeared first on CarNewsChina.com.
Zeekr's Ningbo plant was shut down for 21 days around the Chinese New Year holiday and resumed production on February 1.
The post Zeekr delivers 5,455 vehicles in Feb, up 75% from Jan appeared first on CnEVPost.
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