Zeekr, a prominent Chinese electric vehicle brand, operates a cutting-edge factory in Ningbo, producing one vehicle per minute with a large workforce and advanced technology. As it seeks to expand in Europe, new customs duties pose challenges, but Zeekr remains optimistic about its quality. The brand benefits from substantial government subsidies, allowing competitive pricing. With a focus on efficient battery production, Zeekr aims to lead in the market, showcasing its expertise in eco-friendly lithium iron phosphate batteries.
Welcome to Zeekr, a pioneering Chinese premium electric vehicle brand, which operates an expansive 130-hectare factory in Ningbo, China. This state-of-the-art facility is a marvel, employing thousands of robots and around 3,000 dedicated workers, producing an impressive average of one vehicle every minute. The brand recently made headlines by participating in a documentary to discuss the challenges and opportunities of selling Chinese electric cars in the European market.
As this situation unfolds, it’s essential to note that the European Commission has implemented new regulations as of October 29, introducing additional customs duties on battery electric vehicles imported from China. These surcharges, which stack on top of an existing 10% tax, can vary significantly based on the manufacturer, reaching up to 35%.
Winning Over Customers
In response to these challenges, Zeekr is doubling down on its efforts to capture market share in Europe. The Chinese automaker has expanded its workforce by one-third within the past year, invested heavily in artificial intelligence, and embraced cutting-edge technology. One notable advancement in their production line allows for the creation of a single part in under two minutes, a remarkable improvement from the previous five-hour assembly time.
‘Our goal is to swiftly penetrate the European market. We are already seeing a growing number of French visitors at our factory,’ states Chunli Zhao, Zeekr’s vice president. He confidently adds: ‘Regardless of the taxation challenges, our superior quality will help us win over consumers.’
Substantial Public Subsidies
The high-quality production of Zeekr vehicles aligns with the Chinese government’s aim to showcase its technological prowess over Western countries. Since 2009, Beijing has funneled billions of dollars into the electric vehicle sector, leading to criticisms from Brussels regarding unfair competition practices.
These substantial subsidies serve to artificially lower the prices of Chinese vehicles. For instance, the base model of a Zeekr is priced at approximately 19,300 euros in China, while the same model can cost over double that in Europe. The success of these Chinese manufacturers is deeply rooted in their expertise in battery production, which constitutes up to 70% of the total vehicle cost.
Highly Monitored Battery Production
Recently, Zeekr established its own battery manufacturing facility, a closely guarded operation. The TF1 news team faced restrictions and could only gain limited access to certain stages of the production process. An anonymous employee shared their enthusiasm: ‘Once, we learned car manufacturing from the Germans. Now, it’s our turn to lead.’
Zeekr’s batteries are produced at an impressive speed, with 24 cells created per minute, requiring between 150 to 200 cells to assemble a complete battery. These batteries, known as lithium iron phosphate (LFP) batteries, are devoid of nickel or cobalt, making them a more eco-friendly option. An employee asserted, ‘Chinese batteries surpass foreign ones, particularly in their structural design.’
With an impressive range of up to 700 km on a single charge, Zeekr’s batteries stand among the most efficient options available. China currently dominates the global battery market, supplying nearly two-thirds of the world’s demand and solidifying its status as a leader in the electric vehicle industry.