Geely Launches Premium EV Brand Zeekr, Intensifying War With Tesla, Nio: Report - Geely Automobile Hldgs (OTC:GELYY)

Chinese automaker and Volvo Cars owner Geely Automobile Holdings Ltd GELYY unveiled a high-end electric vehicle (EV) brand, Zeekr, to capitalize on the growing demand in China and snatch a pie of Tesla Inc TSLA and NIO Inc NIO, Reuters reports.
According to Bloomberg, the target market has also attracted tech firms Xiaomi Corp XIACY and Huawei Technologies Co.
The initiative builds on parent Zhejiang Geely Holding Group and Geely Automobile’s joint investment of $306 million (2 billion yuan) to position Zeekr as a startup under the Geely group, which also holds a 9.7% stake in Germany’s Daimler AG DMLRY.
The Zeekr cars will be priced at around 300,000 yuan (roughly $46,000).
The company is playing with the idea of car-using rights and subscriptions for customers.
Geely aims to launch at least two models annually in the next three years, after launching Zeekr 001 this year with a starting price of 281,000 yuan.
The company has set a sales target of up to 8,000 units in the fourth quarter. The target could exceed over 50,000 in 2022 after the addition of two more models.
Geely’s plant has an annual manufacturing capacity of 300,000 EVs. The plant could produce six models on its production line and develop higher production abilities soon.
Zeekr will employ a direct sales model. The brand planned to launch over 100 stores in 2021.
Geely sold 68,142 new-energy vehicles last year, accounting for around 5% of total deliveries.
Geely has also partnered with Baidu Inc BIDU, Tencent Holdings Ltd TCEHY, and Apple Inc AAPL manufacturing partner Foxconn Technology Co Ltd FXCOF for the initiative.
The company targets European exports from late-2022 or early 2023, followed by the U.S. It aims to create its eco-system around Zeekr, akin to Nio, by offering branded products like furniture, clothes, and drinks.
Price action: GELYY shares traded higher by 2.38% at $52.82 on the last check Thursday.

Market News and Data brought to you by Benzinga APIs