Geely’s Zeekr 001 takes on Tesla’s Model 3 with 10% price cut as discounts deepen in China’s EV market

The new versions of the 001, equipped with upgraded electric motor, battery and autonomous driving system, are priced 10 per cent lower than the previous make
Zeekr’s sales rose 65 per cent year on year to 118,685 units in 2023

Electric & new energy vehicles

Daniel Renin Shanghai

Published: 3:30pm, 28 Feb 2024

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Geely’s premium electric-vehicle (EV) unit Zeekr has cut prices by 10 per cent, joining the fray against mainland Chinese rivals after BYD fired the first salvo this month.

The refreshed versions of the Zeekr 001, which competes with Tesla’s Model 3, are now priced at 269,000 yuan (US$37,367) to 329,000 yuan, compared with 300,000 yuan to 386,000 yuan for the previous editions, the carmaker said on Tuesday evening.

The new 001 will be equipped with a raft of cutting-edge technologies, including upgraded electric motor, battery and autonomous driving system to offer drivers and passengers extreme comfort and safety, Zeekr said.

“To compete in the cutthroat market, EV assemblers including BYD and Zeekr are embarking on a low-price strategy with upgraded versions to attract buyers,” said Zhao Zhen, a sales director with Shanghai-based dealer Wan Zhuo Auto. “More companies will be forced to cut prices to maintain market share.”

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The new Zeekr 001 is equipped with silicon carbide-powered e-motors, enabling it to reach zero to 100 kilometres per hour in 3.3 seconds, 0.5 seconds faster than the previous model.

The 400-volt electrical system is upgraded to 800 volts, allowing the Shenxing batteries made by Contemporary Amperex Technology to give a driving range of 256km after just five minutes of charging. The basic edition of the new Zeekr 001 can go 675km on a single charge, compared with 546km for the old version.

Zeekr said its NZP advanced driving assistance system, developed with autonomous driving technology firm Mobileye, will be available for use in more than 60 mainland cities in March before it is expanded to 90 per cent of Chinese cities in the second quarter.

Zeekr delivered 118,685 units of the 001 to mainland Chinese buyers in 2023, a year-on-year increase of 65 per cent.

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Geely, controlled by Chinese billionaire Li Shufu, is one of mainland China’s largest privately owned carmakers. Its parent also owns Sweden’s Volvo Cars and has a stake in Germany’s Mercedes-Benz.

The company launched Zeekr 001 in April 2021, aiming to lure customers away from Tesla’s Model 3. The Shanghai-made Model 3 sells for 245,900 yuan to 285,900 yuan.

On February 18, BYD, the world’s largest EV maker, launched a new version of its plug-in hybrid, the Qin Plus DM-i, with prices starting at 79,800 yuan, 20 per cent below the previous edition.

Three carmakers, including a General Motors joint venture, followed suit and priced their bestselling battery-powered cars below the 100,000 yuan threshold, escalating a price war that could accelerate the transition from petrol vehicles to EVs in China.

Most carmakers are set to offer discounts and engage in a price war to retain market share in 2024, Cui Dongshu, general secretary of the China Passenger Car Association (CPCA), said this month.

EV makers sold 8.9 million units in China last year, a 37 per cent year-on-year increase, according to the CPCA.

But sales growth could slow to 20 per cent this year, according to a forecast by Fitch Ratings in November.

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