Energy
Friday, August 30th, 2024 3:12 pm EDT
Key Points
- Zeekr announced the launch of its first midsize electric SUV, the Zeekr 7X, in China, pricing it over $1,400 cheaper than Tesla’s Model Y, with plans to deliver globally by the end of the year.
- The Zeekr 7X, equipped with two battery options allowing a range of 605 to 780 kilometers, features one of the fastest charging capabilities in the world, and is positioned as a direct competitor to Tesla’s Model Y in China’s highly competitive EV market.
- The intense price competition in China’s EV market is challenging Tesla’s dominance, with companies like Xpeng, Nio, and Xiaomi launching more affordable models, making it harder for Tesla to maintain its market edge.
Zeekr, the Chinese electric vehicle (EV) company, announced the upcoming launch of its first midsize electric SUV, the Zeekr 7X, in China on September 20. Priced at 239,900 yuan ($33,829), the Zeekr 7X is strategically positioned to undercut Tesla’s Model Y by over $1,400, reflecting the fierce competition in China’s EV market. The Zeekr 7X, a five-seater SUV, comes with two battery options that provide a driving range of 605 to 780 kilometers (376 to 485 miles) on a single charge. These lithium-ion phosphate batteries, developed by Zeekr’s engineers, offer a rapid charge capability, reaching 75% charge in just 10.5 minutes—claimed to be faster than Tesla’s. The SUV, which accelerates from 0 to 100 kilometers per hour in 3.8 seconds, is Zeekr’s latest attempt to challenge Tesla’s dominance in China, a market that has seen increased competition from other Chinese EV makers like Xpeng and Nio.
The launch of the Zeekr 7X comes amid an intense price war in China’s EV market, where manufacturers are aggressively pricing their models to compete with Tesla. For example, Xpeng recently launched its Mona M03 at less than $17,000, and Nio introduced its lower-cost Onvo brand with vehicles priced $4,000 below the Model Y. This competitive pricing strategy is making it difficult for Tesla to maintain its market edge, especially as concerns over quality have begun to erode Tesla’s lead, even over traditional automakers. While Tesla’s Model Y has not seen a price change in China for nine consecutive weeks, the company faces growing pressure from domestic rivals offering cheaper alternatives.
In terms of sales, Zeekr sold 15,655 vehicles in July, marking a 30% year-on-year growth, while Tesla sold 46,227 cars, a 47% increase year-on-year. Zeekr also expanded its presence in Hong Kong last month and plans to launch a right-hand drive version of the Zeekr 7X there next year. The company’s global ambitions for the Zeekr 7X, with plans to deliver it worldwide by the end of the year, underscore its strategy to challenge Tesla not just in China but on the global stage. As Chinese EV makers continue to introduce new models at competitive prices, Tesla’s ability to sustain its dominance in the market is increasingly in question.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/08/30/chinas-zeekr-to-launch-first-electric-suv-priced-to-undercut-teslas-model-y.html
