On February 7, Geely disclosed in a Hong Kong Stock Exchange filing that it had entered into a vehicle purchase agreement with Zeekr, a move poised to bring Zeekr’s new energy vehicles (NEVs) to the Mexican market. This agreement includes the procurement of whole cars along with the requisite after-sales parts and accessories for resale in Mexico. This is a significant step forward for Geely in expanding its footprint in the global electric vehicle (EV) market.
This initiative is part of a broader strategy to tap into the burgeoning demand for electric vehicles in Latin America, focusing on Mexico. The Mexican government has already set ambitious targets for the automotive sector, aiming for hybrid and electric cars to account for 50% of the market share by 2040 or earlier.
Geely’s decision to introduce the Zeekr brand in Mexico is a forward-looking move designed to establish a preliminary foothold in the region well ahead of this target, providing the company with a “key strategic advantage” to expand its operations across Latin America.
Zeekr, as a brand under Geely, has been making waves in the EV sector with its rapid growth and innovation. In January alone, Zeekr reported a delivery volume of 12,537 units, marking a 302% increase year-over-year and bringing the brand’s cumulative deliveries to 209,170 units. Despite the competitive market dynamics, including aggressive pricing strategies by rivals, Zeekr’s Vice President Lin Jinwen has stated that the brand will not engage in price wars. Instead, Zeekr is setting its sights on a sales target of 230,000 units for the year, with reservations for its 007 model expected to surpass 25,000 by the end of January.
Zeekr’s international expansion is not limited to Mexico. The brand announced its entry into the European market in December of the previous year, with the first European version of the Zeekr 001 being delivered in the Netherlands. This marked the beginning of Zeekr’s journey in Europe, with the brand now present in several European countries, including Sweden, the Netherlands, and Germany, as well as markets in Central Asia and the Middle East.
The introduction of Zeekr vehicles in Mexico signifies Geely’s commitment to advancing the adoption of electric mobility solutions worldwide. By bringing cutting-edge EV technology and models to new markets, Geely aims to meet the growing demand for sustainable transportation options while contributing to global efforts to reduce carbon emissions.
Many well-known EV companies, including Geely, BYD, and others, have entered the Mexican market. Some analysts believe that against the political background of the United States suppressing China’s EV industry, Chinese companies’ large-scale entry into Mexico is an attempt to develop the North American EV market.