- The Zeekr PHEV flagship will be introduced in 2025.
- Zeekr's global sales numbers are up nearly 100% compared to last year.
- Zeeks says it remains on track to profitability.
Electric Vehicle startup and spinoff from Geely, Zeekr, had its second-quarter earnings call this morning. Things seem to be going well, but Zeekr CEO Andy An dropped a bombshell at the end of the call, confirming a rumor on social media. Zeekr will add a hybrid model to its lineup.
Now, this is definitely confusing for everyone involved. Currently, Zeekr advertises itself as a fully electric brand, and this new hybrid model throws a wrench into that. Even more interesting is that An says it will use an entirely new hybrid technology system. This will be different from the NordThor system currently in service in other Geely and Lynk & Co products. This model will be a flagship, sitting at the top of the Zeekr range.
I reached out to Zeekr for more clarity on the decision. Zeekr’s flagship, a large SUV, will be available in two forms. One will be pure electric, but the other will be what the representative called an “innovative super hybrid powertrain…designed to merge the benefits of a battery electric vehicle (BEV), plug-in hybrid electric vehicle (PHEV), and extended-range electric vehicle,” the representative said via WeChat. “This innovative powertrain aims to provide an ultimate driving experience akin to that of BEVs, while delivering exceptional fuel efficiency at high speeds and an enhanced range,” Zeekr says this model will launch in the second half of 2025.
Considering Zeekr’s status as a premium brand inside and outside of China, it’s clear that Zeekr’s product lineup is aiming straight at brands like BYD. On paper, Zeekr’s basic idea for a luxury flagship PHEV crossover feels like it’s aimed straight at the (BYD) Yangwang U8, the Land Rover Defender-esque SUV that can float down rivers and moonwalk across the road. It could also compete with Western luxury flagship models like the Mercedes-Benz G580 EV, or BMW XM.
On some level, this feels like a step backward, as if Zeekr and Geely are admitting that perhaps EVs aren’t always the solution, even in the world’s biggest EV market. Zeekr says that it made the decision to “meet the needs of our customers, especially regarding the powertrain of a large SUV.” Perhaps this is prescient, and Zeekr (and Geely) are just reading the room and responding to the strong demand for hybrid amongst consumers. Ford killed its large EV crossover to focus on hybrids, to the chagrin and ire of EV enthusiasts and analysts alike. Maybe Ford and Zeekr are ahead of the game here.
On the other hand, Zeekr’s earnings call revealed that its EV-only lineup is doing well. Sales are up nearly 100% compared to last year during the same quarter. Losses are up 28.7% compared to last year but down 10.7% compared to last quarter. Gross revenue is up and Zeekr’s vehicle margin has improved as well. Zeekr says it is still on track to reach profitability, but it didn’t say if it will change its original goal by the end of this year. It plans to launch two new full EV models by the end of the year, the 7X crossover and the MIX mini MPV.
Given Zeekr’s focus on growth and profit, it wouldn’t be surprising if Zeekr’s other EVs and now hybrid vehicles make it out of China. Will the U.S. be next? We’ll just have to wait and see how things play out after this year’s election.
Contact the author: kevin.williams@insideevs.com
