Written by Akimoto Yukiko | Edited by Cláudio Afonso
Electric vehicle (EV) manufacturer Zeekr has just hit the 20,000 deliveries milestone in June, but the next target is already clear for this subsidiary of the Geely Holding Group.
The company plans to introduce the MPV Zeekr MIX and a mid-to-large SUV in August and September this year. Additionally, three all-new models are scheduled for launch in 2025.
As unveiled in an open letter titled “Maintain strategic determination amidst the chaos, charge ahead!”, Zeekr‘s CEO An Conghui said he believes that the new models will help to achieve average monthly deliveries of 20,000 units in Q3 and average 30,000 units monthly in the last quarter of the year.
The company targets an annual gross margin of 15 percent and aims to reach its annual sales target of 230,000 units.
In the first half of this year, Zeekr delivered a total of 87,870 vehicles, marking a year-on-year growth of 106 percent.
An Conghui showed confidence in maintaining continuous deliveries, driven by the increased production capacity of new models. He stated that the next step will involve adopting a direct sales and dealer layout in Europe.
Zeekr is also actively advancing the process of localized production in Europe and will disclose relevant information at an appropriate time.
In the open letter, An Conghui stated that the company needs to create “a second and third model with monthly sales exceeding 10,000 units”. Here’s the complete letter.
“Dear Zeekr Warriors,
In June, Zeekr crossed the milestone of selling 20,000 units in a single month. The Zeekr 001 continued its trend of selling over 10,000 units monthly, bringing its total sales to over 200,000 units, making it the best-selling shooting brake model globally.
Our half-year report card shows that we achieved this breakthrough of delivering 20,000 units in a month, a success that wouldn’t have been possible without the relentless efforts of every Zeekr member. The chaos in the current industry is evident to all and has even surpassed Geely’s nearly 30 years of car manufacturing experience. The automotive industry is more chaotic and competitive than ever before, with price wars, verbal battles, traffic wars, and even legal battles constantly emerging. The attention and competition in the new energy vehicle industry are unprecedented, with both internal and external players jockeying for position. The frequent headlines and hot topics in the automotive industry reflect the tumultuous times we are in.
Amid such chaos, what should Zeekr stand firm on?
From its inception, Zeekr has committed to tackling the toughest challenges first, starting from the high-end segment and pursuing a differentiated development path. This is Zeekr’s strategic choice.
What is differentiation? Differentiation means creating demand. Only by creating demand can we lead industry transformation! It doesn’t matter what we say about our products; what matters is the users’ evaluations and the recognition from our peers.
Step by step, we’ve come this far. Looking at the sales trends, unlike the rollercoaster sales of our competitors, Zeekr’s sales have been climbing steadily since the beginning of the year, much like an increasingly strong mobile signal. In the first half of this year, Zeekr delivered nearly 88,000 units, firmly establishing itself as China’s top high-end pure electric brand, achieving a 38.2% completion rate of our annual target, leading among all new forces.
From the delivery of the Zeekr 007 in January to the launch of the new Zeekr 001 in February, consistently selling over 10,000 units monthly, to the glorious release of the Zeekr 009 in April and its delivery in May, with orders scheduled until next year. We also achieved the fastest IPO in history, listing on the New York Stock Exchange in just 37 months.
Daring to innovate, achieving positive gross margins, and maintaining high quality are the pillars of Zeekr’s high-quality development and the confidence in our strategic determination.
But I must say, this is far from enough.
In the next six months, we need to deliver an additional 142,000 units, which means we need to challenge ourselves to deliver over 30,000 units in a single month within this year. This is the real tough battle of the year! Before Zeekr, only Tesla has achieved monthly sales of over 30,000 units in the high-end pure electric segment, and it remains the only profitable high-end pure electric brand. Given the timing and the situation, Zeekr must reach a new peak of over 30,000 units monthly in China’s high-end pure electric market to see further horizons.
Facing such a tough battle, at this mid-year review, I call on all Zeekr warriors to start sprinting now with the attitude of a 100-meter race!
We need to make Zeekr-style safety a symbol of the new energy era. Safety is the eternal topic most concerning to users. We must achieve the ultimate safety, making it the action guideline for all our R&D teams in architecture, three-electrics, intelligent driving, and cabins. We will continue to invest heavily to win the trust and respect of users with ultimate safety in the new energy era.
We need to make Zeekr’s technology a benchmark for the industry. In the second half of the year, we will continue to have significant technology releases. The support of technology and the accumulation of experience in large-scale car manufacturing give us the confidence to redefine each market segment and become leaders!
We need to create a second and third model with monthly sales exceeding 10,000 units.
Achieving this, and even surpassing Tesla, requires the entire organization to revolve around user needs, collaborating across the entire lifecycle from R&D, sales, production capacity, quality control, delivery, after-sales service, and energy replenishment. This is our foundation and the basis for achieving the high-quality target of 230,000 units sold.
We need to win in the intense new energy knockout competition with high efficiency. In this era of intense competition, the focus has shifted from quantity and scale to quality and efficiency. As an entrepreneurial organization, Zeekr needs to continue to conquer markets, leveraging our direct sales advantages, striving for efficiency within the organization, and achieving results in the market. We aim to break through 500 domestic stores within the year, expanding our frontline sales team by 16%, reaching broader lower-tier markets, and establishing a more complete retail, delivery, and after-sales service loop.
Lastly, I want to share some information. Before our live broadcast of disassembling the first-generation Zeekr 001 with a total mileage of 320,000 kilometers, our competitor also disassembled a brand new Zeekr 001 at their German headquarters. It is said that they did this to study “how to achieve such rich configurations at such a low cost.” Honestly, unlike some partners who felt proud upon hearing this, I felt no sense of pride but rather more respect for such a century-old brand. The close-range defense and respect from our competitors make me feel deeply apprehensive and cautious.
In today’s chaotic market, I hope all warriors can maintain strategic determination, stick to originality, innovation, quality, and safety. At the beginning of the second half of the year, we must sprint with the speed of a 100-meter race to win this marathon, increase our pace, and start sprinting immediately!”
Over the weekend, the company announced plans to establish over 1100 ultra-fast charging stations and 500 supercharging stations, alongside access to 800,000 third-party charging piles in China.
Last week, the company entered the Mexican market as part of its global expansion strategy. On Monday, the brand celebrated the arrival of its first batch of vehicles in Mexico.
Written by Akimoto Yukiko | Edited by Cláudio Afonso
