Geely Auto inks deal with ZEEKR to sell its EVs in Mexico, hints at expansion to South America

Geely Holding Group subsidiary Geely Auto has announced a vehicle purchase agreement with fellow marque brand ZEEKR to sell its EVs and aftermarket parts in Mexico. With the agreement, Geely hopes to fast-track ZEEKR’s line of advanced new energy vehicles to Mexican consumers hungry for more sustainable alternatives to combustion models as a stepping stone to further expansions South to Latin America.

Geely-owned ZEEKR is one of China’s more exciting and fast-moving all-electric brands. In a few short years, the brand has developed three bespoke EV models in addition to a quad-motor variant of its flagship 001 sedan.

The lineup now includes the 007 – ZEEKR’s first mass-market EV, which will join the 001 across expanding markets in Europe and possibly beyond. Today, we’ve learned that Geely Auto has stepped in to help ZEEKR expedite its expansion plans and enter North America, beginning with Mexico.

Geely invests big money to bring ZEEKR EVs to Mexico

Per a statement shared by Geely Auto today, it has signed a purchase agreement with ZEEKR to resell the latter’s EVs in Mexico over the next three years until at least December 31, 2026. The annual purchase caps for 2024-2026 are RMB 674.3 million ($94.8 million), RMB 1.56 billion ($219.8 million), and RMB 3.13 billion ($439.8 million), respectively, totaling approximately $754.4 million.

The purchase agreement also includes aftermarket parts and accessories to support the influx of ZEEKR vehicles to customers in Mexico. There is no mention of what ZEEKR models will initially be sold in Mexico, but we’d surmise plans include the 001 shooting brake.

The number of vehicles that make their way to the southernmost part of North America also depends on the estimated sales volume of ZEEKR-brand vehicles and related parts/accessories in Mexico. Still, given the massive purchase commitment, it should be robust.

In the agreement announcement, Geely Auto shared the reasoning for its decision to help promote ZEEKR EVs in Mexico and hinted at expansion plans further south in the future (translated from Chinese):

Latin American consumers are clamoring for greener cars at a time when fossil fuel costs are soaring and sustainability is becoming increasingly important. In order to achieve a more environmentally conscious future, Colombia has set a goal to equip more electric vehicles by 2030 or before. Likewise, Chile has committed to selling only electric vehicles on or before 2035, with the goal of establishing an all-electric public transportation system in the long term.

On the other hand, Mexico has set a goal that by 2040 or before, the number of hybrid or electric vehicles will account for 50% of the country’s market, and in the long term, it will move towards achieving a 100% electrified vehicle market. At the same time, major dealers in Latin America have actively increased the promotion and popularization of new energy vehicles. The Group believes that Latin America will become a highly valued new energy vehicle market in 2024.

The Colombian market will bring valuable opportunities for the Group to establish a preliminary foothold in the region early. The strategic deployment of introducing Jikrypton (ZEEKR) brand new energy vehicles will be of great significance, and it will also allow us to accumulate valuable experience and bring key forward-looking advantages for expanding our business to other Latin American countries in the future.

Given the terms of the purchase agreement, we should see Geely Auto begin to roll out ZEEKR EVs in Mexico this year.