China's Zeekr launches EV in Australia, plans expansion to New Zealand

The Australian market has become a favourable hunting ground for Chinese EV makers such as Zeekr after trade barriers have intensified in other markets.

Chinese electric vehicle (EV) maker Zeekr has made its first entry into the Oceania market, with the launch of its first model in Australia. As Geely-owned premium brand seeks to become a core overseas market, it is planning to launch two models in 2024, and has set both cars to launch in New Zealand later this year.

The sport utility vehicle (SUV) X from Zeekr has given a promising start to sales, with Connal Yan, managing director, Zeekr Australia. In addition, more than 2,500 expressions of interest for the MPV 009 have been received collectively alongside the SUV X, the company’s multi-purpose vehicle.

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The Australian market has become a favourable hunting ground for Chinese EV makers such as Zeekr after trade barriers have intensified in other markets. The US market is still largely closed to them, but Europe is preparing to impose hefty tariffs on Chinese-made EVs. It also is expected that, au contraire, Australia, which lacks domestic car manufacturing, will not impose protectionist trade measures, including becoming an attractive market for Chinese automakers.

Although only Australia sells a relatively small number of cars (1.2mn last year) the market has become attractive to chase due to the strong government push for EV uptake since 2022 as part of their zero emission targets. The trend to warm bilateral relations between China and Australia after years of tension has also encouraged this warming.

Yan said he is optimistic about the company’s prospects in Oceania, which can potentially become one of Zeekr’s largest markets abroad along with Southeast Asia and Latin America. Australia's new vehicle efficiency standards, which kick in 2025, were also likely to boost demand for EVs, he added.

The SUV X was stuck in the Australian market in the initial launch, but after that, Zeekr is going to bring another model in the range of medium sized SUV which is its 7X and is expected to head to the same market next year.

By focusing on Australia and New Zealand, Zeekr is positioning itself to tap into a growing market for electric vehicles, driven by favorable policies and the absence of significant local competition.