Another Chinese manufacturer is considering starting vehicle production in Europe

The Chinese electric car brand Zeekr is considering producing its vehicles in Europe in order to avoid the special import tariffs recently imposed by the European Union authorities. Nevertheless, Zeekr will in no case have its own plant on the continent, but at best will use the production facilities of its parent company, Geely.

Since early July, all Zeekr vehicles imported into the EU from China are subject to a special tariff of 19.9 percent, to which must be added the regular 10 percent tariff in force prior to that date. This amounts to almost 30 percent in total, which significantly restricts the competitiveness of the brand’s vehicles compared with competing models.

In relation to this matter, and in statements to the media, the Chief Executive Officer of Zeekr, Andy An, has assured that the company is currently working actively to assess the possibility of localizing production in Europe. Likewise, this executive of the Chinese firm has committed to making an official announcement once a definitive decision has been taken.

It is going to be easier for Zeekr

One advantage Zeekr has over other Chinese manufacturers in tackling the problem that the new special tariffs pose for the competitiveness of its vehicles in the European market is that Geely has been active in Europe for many years, as it also owns the Swedish manufacturer Volvo since 2010. Furthermore, in 2022, Geely bought half of Smart and now operates the brand in a joint venture together with Mercedes-Benz.

Zeekr therefore has the capacity to access Geely’s resources in Europe. This could materialize in the near future, with its vehicles eventually also being produced at one of the plants that Volvo currently operates in Sweden and Belgium. Nor should it be forgotten that Geely also has a plant for its subsidiary London Electric Vehicle in the United Kingdom, where the famous London taxis are produced.

In any case, whatever the outcome, the European Union’s decision to establish special tariffs has not sat well with Zeekr’s management. Andy An himself recently lamented the introduction of these new tariffs, as in his opinion they are not heading in the right direction and will end up having an impact on Zeekr’s international growth.

The slowdown in the brand’s expansion in Europe that the imposition of these new special tariffs may cause has, on the other hand, led Zeekr to opt for accelerating its operations in other markets. Thus, the Chinese manufacturer plans to begin delivering vehicles in some countries in the Middle East, Latin America and Southeast Asia this same year, while sales in Japan and South Korea are also planned for 2025.