Zeekr Group's Strategic Momentum in the Premium EV Market

The global electric vehicle (EV) market remains a battlefield of innovation and integration, where companies must balance technological leaps with operational scalability. Zeekr Group, a Geely-owned premium EV brand, has emerged as a compelling case study in this arena. With its recent financial performance, strategic partnerships, and cutting-edge product launches, Zeekr is positioning itself as a leader in the premium EV segment. However, the question remains: Can this momentum sustain long-term growth amid industry volatility and integration challenges?

Financial Resilience and Delivery Growth

Zeekr’s second-quarter 2025 results underscore its ability to navigate market turbulence. Total vehicle deliveries reached 130,866 units, reflecting a 9.3% year-over-year increase and a 14.8% quarter-over-quarter surge [1]. This growth was driven by both its Zeekr and Lynk & Co brands, with the latter achieving 58.8% new energy vehicle (NEV) sales. Financially, the company reported RMB22,916 million in vehicle sales, a 2.2% YoY rise and 20.0% QoQ jump [1]. Notably, its vehicle margin improved to 17.3%, outpacing the 11.5% margin in Q2 2024 and the 16.5% margin in Q1 2025 [1]. These metrics suggest a tightening of cost structures and pricing power, critical for premium EV brands.

Innovation as a Differentiator

Zeekr’s recent product launches highlight its commitment to technological leadership. In July 2025, the company unveiled its Super Hybrid Technologies, including a 900V high-voltage architecture, tri-silicon carbide-powered e-motors, and a CATL Freevoy Super Hybrid battery [1]. These innovations address two key pain points in the EV market: range anxiety and charging speed. The newly announced Zeekr 9X, set for Q3 2025 deliveries, further cements this strategy. With a 70kWh battery pack offering 380km of range and a 205 kW turbocharged 2.0T engine, the 9X bridges the gap between pure EVs and hybrid vehicles, appealing to premium buyers seeking versatility [1].

Strategic Integration and Global Expansion

Zeekr’s pending merger with Geely represents a pivotal strategic shift. By combining Zeekr’s R&D expertise with Geely’s global footprint, the merger aims to unlock access to 39 international markets and reduce battery production costs through shared infrastructure [2]. This synergy is particularly valuable in markets like Europe and Southeast Asia, where regulatory pressures and consumer preferences are rapidly evolving. The merger also aligns with Geely’s broader vision to dominate the premium EV segment, a market projected to grow at a 15% CAGR through 2030 [2].

Assessing Long-Term Sustainability

While Zeekr’s current trajectory is impressive, investors must scrutinize its integration challenges. The Geely merger, though promising, requires seamless coordination of supply chains and R&D pipelines. Additionally, the premium EV market is highly competitive, with Tesla, BYD, and traditional automakers like BMW and Audi investing heavily in electrification. Zeekr’s ability to maintain its 20.6% gross margin [1] while scaling production will be a key test of its operational discipline.

However, the company’s focus on differentiated innovation—such as its Super Hybrid Technologies—provides a buffer against commoditization. By addressing hybrid and EV niches simultaneously, Zeekr can capture segments that remain hesitant to fully commit to battery-only vehicles. This dual-path strategy, combined with Geely’s global scale, positions Zeekr to weather industry cycles better than smaller, niche players.

Conclusion

Zeekr Group’s strategic momentum is underpinned by a rare combination of financial resilience, technological innovation, and strategic integration. While risks such as supply chain bottlenecks and regulatory shifts persist, the company’s proactive approach to hybrid-EV convergence and global expansion offers a robust framework for long-term growth. For investors, the key will be monitoring how effectively Zeekr leverages its Geely partnership to scale without diluting its premium brand identity.

**Source:[1] Zeekr Group Reports Second Quarter 2025 Unaudited Financial Results, [https://finance.yahoo.com/news/zeekr-group-reports-second-quarter-043000583.html][2] Zeekr Group's Strategic Transformation: A Case for Long-Term Resilience in the Volatile EV Market, [https://www.ainvest.com/news/zeekr-group-strategic-transformation-case-long-term-resilience-volatile-ev-market-2508/]