Geely plans to launch a new premium EV brand targeting to take on Tesla

Geely plans to launch a new premium EV brand targeting to take on Tesla

China’s carmaker, Geely, plans to launch electric vehicles under new settings with a different brand name and sales strategies. This move is bold but promising as experts familiar with the issue claim that the Volvo Cars’ owner plans to take on Tesla, the main EV rival with High-end vehicles. The brand is in the premium segment and is titled “Zeekr,” which will run under Geely’s soon-to-launch EV entity Lingling Technologies. These details are from reliable sources whose identities remain a mystery since this information is yet to be announced to the public.

The big question persists, can they beat Tesla? Tesla is the pioneer of electric vehicles, and regarding resources, technology, experience, and exposure, they are on top of other companies. However, time will unveil all truths, but experts are open to new possibilities. Last month Reuters announced Lingling’s plans.

Geely is Volvo Cars’ owner and owns 9.7% of the Daimler; he plans to generate car models under a new brand regarding its open-source EV chassis that came to the public in September 2020 under the SEA (Sustainable Experience Architecture). This move is a new strategy aiming to top in the electric vehicles’ market and back founder and Chairman Li Shifu’s dream to generate premium cars similar to Mercedes-Benz. All this focus seems to be targeting their EV rival, Tesla.

Geely plans to open showrooms in city centers and sell cars at fixed prices, which challenges the tradition of selling cars through dealerships. This marketing tactic was pioneered by EV leader Tesla and in 2020 reported a rapid increase in China’s sales, the planet’s largest market. The plan is part of Geely’s goal to become the leading EV manufacturing and engineering service provider.

Alan Kang, an analyst in the LMC Automotive auto consultancy, stated that Traditional gas-fueled cars and electric vehicles are two different businesses. Geely’s current company doesn’t have an advantage, which explains why he is taking an easy way of creating a new brand to compete with Tesla.

For a while, China’s automakers have competed with entry-level manufacturers such as Volkswagen and Toyota, but some carmakers like Nio have high-prices, taking BMW as their main rival. Geely is planning on new sales and marketing strategies that will help him build relationships with EV buyers. It will implement Nio’s tactics of lifestyle lines of accessories and clothing and launch a car owner’s club.

Geely is yet to comment on the matter, leaving people’s minds to run wild. Various conventional carmakers have utilized a new brand to launch electric vehicles, including SAIC Motor and Great Wall. China’s government is a big promoter of electric cars as it focuses on reducing emissions to the environment.