Zeekr's Acquisition of Lynk & Co.: A Strategic Move in the NEV Market

In a strategic move aimed at consolidating its position in the new energy vehicle (NEV) market, Chinese electric vehicle (EV) maker Zeekr is set to acquire a controlling stake in its sister brand, Lynk & Co. According to sources cited by the Economic Daily, Zeekr will take a majority ownership in Lynk & Co., with a formal announcement expected soon. This consolidation follows Geely's shift from broad expansion to a more focused approach, outlined in the Taizhou Declaration on September 1, 2024.

Zeekr, launched in 2021, has become a significant player in the EV market, while Lynk & Co., a joint venture between Geely and Volvo since 2017, has faced challenges in keeping up with the rapid rise of EVs. Despite reaching one million sales in six years, Lynk & Co. only introduced its first battery electric vehicle, Z10, in 2024. As part of the integration, Lynk & Co. will retain its brand but align its team and strategy more closely with Zeekr, particularly in financial and procurement functions.

The consolidation aims to reduce internal competition and optimize resources to improve Geely's competitiveness in the NEV sector. The integration is set to address the evolving dynamics in China's automotive market, where competition is fierce, and consumer demands are changing rapidly. Geely's sales figures emphasize the need for this strategy. In October 2024, the group sold 226,686 vehicles, a 28% increase from the previous year. Fully electric vehicle (BEV) sales grew by 132%, reaching 78,858 units. Lynk & Co. and Zeekr combined accounted for nearly 30% of Geely's total sales in the first three quarters of 2024.

Zeekr's market share continues to grow, with a 92% increase in sales in October, reaching 25,049 units. Lynk & Co. experienced a 26% increase, selling 31,074 units in the same month. For the year, Geely has sold 1.32 million vehicles, up 26% from 2023, including 408,000 BEVs, a 66% increase.

This consolidation reflects a broader trend in the Chinese automotive industry, with other brands like Polestar also considering similar integrations. Zeekr's chairman, Andy An, is also set to become chairman of Polestar, suggesting further integration between these brands. Geely's new strategic focus aims to streamline operations and enhance its position in the competitive NEV market.



In conclusion, Zeekr's acquisition of Lynk & Co. is a strategic move that will enable Geely to optimize resources, reduce internal competition, and improve its competitiveness in the rapidly evolving NEV market. By aligning Lynk & Co.'s team and strategy with Zeekr's, Geely can better address changing consumer demands and maintain a strong market presence. This consolidation is part of a broader trend in the Chinese automotive industry, with other brands also considering similar integrations to enhance their positions in the competitive NEV market.