Benzinga | Apr 15, 2021 02:16PM EDT

Geely Launches Premium EV Brand Zeekr, Intensifying War With Tesla, Nio: Report

* Chinese automaker and Volvo Cars owner Geely Automobile Holdings Ltd (OTC: GELYY) unveiled a high-end electric vehicle (EV) brand, Zeekr, to capitalize on the growing demand in China and snatch a pie of Tesla Inc (NASDAQ: TSLA) and NIO Inc (NYSE: NIO), Reuters reports.

* According to Bloomberg, the target market has also attracted tech firms Xiaomi Corp (OTC: XIACY) and Huawei Technologies Co.

* The initiative builds on parent Zhejiang Geely Holding Group and Geely Automobile's joint investment of $306 million (2 billion yuan) to position Zeekr as a startup under the Geely group, which also holds a 9.7% stake in Germany's Daimler AG (OTC: DMLRY).

* The Zeekr cars will be priced at around 300,000 yuan (roughly $46,000).

* The company is playing with the idea of car-using rights and subscriptions for customers.

* Geely aims to launch at least two models annually in the next three years, after launching Zeekr 001 this year with a starting price of 281,000 yuan.

* The company has set a sales target of up to 8,000 units in the fourth quarter. The target could exceed over 50,000 in 2022 after the addition of two more models.

* Geely's plant has an annual manufacturing capacity of 300,000 EVs. The plant could produce six models on its production line and develop higher production abilities soon.

* Zeekr will employ a direct sales model. The brand planned to launch over 100 stores in 2021.

* Geely sold 68,142 new-energy vehicles last year, accounting for around 5% of total deliveries.

* Geely has also partnered with Baidu Inc (NASDAQ: BIDU), Tencent Holdings Ltd (OTC: TCEHY), and Apple Inc (NASDAQ: AAPL) manufacturing partner Foxconn Technology Co Ltd (OTC: FXCOF) for the initiative.

* The company targets European exports from late-2022 or early 2023, followed by the U.S. It aims to create its eco-system around Zeekr, akin to Nio, by offering branded products like furniture, clothes, and drinks.

* Price action: GELYY shares traded higher by 2.38% at $52.82 on the last check Thursday.