Zeekr’s Strategy to Bypass Tariffs with Geely’s Help

Introduction

In a strategic move to penetrate the European automotive market, Zeekr, a burgeoning electric vehicle (EV) brand, is likely to leverage its parent company, Geely, to sidestep hefty tariffs on cars built outside Europe. This collaboration could potentially shake up the EV market dynamics, offering more competitively priced vehicles to European consumers.

Zeekr’s Plan for European Market Penetration

Zeekr, a brand under the Chinese automotive giant Geely, aims to enter the competitive European market by manufacturing vehicles domestically within Europe. Here’s how this plan is expected to unfold:

Utilizing Geely’s European Production Facilities

Zeekr intends to take advantage of Geely’s established manufacturing plants in Europe to assemble its EVs. This move would help:
– Bypass significant import tariffs: By producing the cars within Europe, Zeekr can avoid substantial import duties that often make foreign vehicles more expensive.
– Reduce logistical costs: Local production minimizes transportation expenses, leading to a reduction in the final cost for consumers.
– Enhance market appeal: Cars produced locally may appear more appealing to European consumers

Credits:https://europe.autonews.com/automakers/zeekr-may-use-geely-help-bypass-tariffs-europe-built-cars