ZEEKR, the electric vehicle brand under Chinese Geely, is set to launch in Saudi Arabia, UAE, Qatar, and Bahrain next year. The company is intensifying its global efforts in preparation for its planned entry into the U.S. market.
ZEEKR joins other Chinese EV manufacturers like BYD that are looking to expand abroad in search of growth, especially as sales slow down and competition intensifies within China.
The anticipated initial public offering for ZEEKR is expected to reach $1 billion, making it the largest U.S. listing by a Chinese company since DiDi raised $4.4 billion in 2021.
Chen Yu, the vice president of ZEEKR, stated, “Our competitive pricing strategy will aim to rival traditional luxury car brands like BMW and Audi.” He added, “The Middle East is a relatively new market for electric vehicles, and there is no mature offering of luxury electric vehicles in most of its markets.”
This expansion into Saudi Arabia, UAE, Qatar, and Bahrain comes at a time of increasing cooperation between China and the Gulf countries. Chen noted that ZEEKR expects to deliver 10,000 units across the four markets by 2025. The company is also open to raising funds from investors in the Middle East, having sold around 150,000 vehicles in China since 2021.
Additionally, ZEEKR plans to expand into Europe and has announced plans to begin sales in the Netherlands and Stockholm in the fourth quarter of 2023. However, electric vehicle manufacturers face opposition in Brussels, which launched an investigation into subsidies for Chinese electric vehicles in September.
In order to establish a sales network, ZEEKR signed agreements with four major car dealers in the UAE, Qatar, Bahrain, and Saudi Arabia on September 28.
Yale Chang, head of AutoForesight consulting based in Shanghai, stated that the Middle Eastern markets are well-suited for ZEEKR's cars as “consumers have the spending power” to purchase luxury electric vehicles.
Chang added, “The push into the Middle East is already proving successful for some high-end Chinese electric car brands, as they face fewer political headwinds than they might encounter in the U.S. or European markets.”
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