Geely Transfers Operations to Subsidiary Zeekr
Revamped: Zeekr's Ambitious Move into Russia
Zeekr, the premium electric vehicle brand under Geely, contemplates full control as it plans to acquire the remaining shares and delist from the NYSE. Making waves in the automotive industry, this Chinese powerhouse aims to tighten its grip over Zeekr, potentially reshaping its international footprint.
The Russian Market Beckons
As Geely eyes a stronger global presence, Russia captures its attention, despite the complex geopolitical landscape. With its vast distances and chilly temperatures, a specialized version of Zeekr vehicles might fare exceptionally well in this market. Case in point, BMW's Range Extender—an electric car equipped with an internal combustion engine that recharges the battery when needed.
Sanctioned Sales
Interestingly, electric vehicle sales in Russia plummeted by nearly 70% at the start of the year, but Zeekr managed to cement its position as the market leader for new electric vehicles. With over a third of sales in Q1 2025, Zeekr rules the roost, ahead of Avatr and Evolute.
Navigating the Challenges
Expansion into Russia, however, isn't a walk in the park. Geopolitical turmoil, sanctions, and tariff policies create a minefield of complexity. Chinese companies, such as Geely and Zeekr, grapple with the intricacies of importing parts, foreign investment, technology access, and finances.
The Road Ahead
By consolidating Zeekr under Geely, the group can leverage its extensive resources—financing, supply chains, infrastructure, and strategic planning—to forge ahead in Russia. Geely's keen interest in developing local factories could speed up Zeekr's entry or expansion in the Russian market.
Tailoring to the Russian Market
To truly captivate Russian buyers, Zeekr must cater to their unique preferences. This might involve creating an affordable, tailor-made model or setting up a sub-brand, entirely at their discretion. As they continue to court the European market's growing demand for electric vehicles, Zeekr remains steadfast in its pursuit of success in Russia and other up-and-coming markets.
As Geely and Zeekr make their bold moves towards a broader global presence, they will need to tread carefully through the complex maze of international sanctions and tariff policies. But with persistence, strategic planning, and a keen understanding of the Russian market, they may just find themselves cruising down a promising new path.
- Geely, with Zeekr as its premium electric vehicle brand, is planning to delist from the NYSE and acquire full control, aiming to utilize advanced technology to tailor Zeekr vehicles for the Russian market.
- To remain competitive in the Russian market, Zeekr might follow the example of BMW's Range Extender, which incorporates an internal combustion engine to recharge the battery when needed in electric vehicles.
- Despite the geopolitical challenges and the impact of sanctions and tariff policies, Zeekr has managed to secure a leading position in the Russian electric vehicle market, with over a third of sales in Q1 2025.
- In order to navigate these complexities, Geely is considering setting up local factories in Russia, which could help Zeekr navigate the importation of parts, foreign investment, technology access, and financial aspects more efficiently.
