Chinese electric vehicle (EV) manufacturer Zeekr, a subsidiary of Geely Automobile Holding, is set to launch its EV range in Thailand despite a significant downturn in the country's premium car market. This bold move comes as the company seeks to establish a foothold in Southeast Asia's growing EV sector.

Market Challenges

The Thai premium car market has experienced a substantial decline, with sales plummeting 30% year-on-year during the first half of 2024. This downturn is attributed to several factors:

1. Economic slowdown in Thailand

2. Intensifying competition, particularly from Chinese EV manufacturers

3. Cautious consumer spending

4. Stricter auto loan criteria from banks

Bao Zhuangfei, head of Zeekr's Southeast Asia region, noted that Thailand's economy is currently underperforming compared to neighboring countries like Malaysia, the Philippines, and Indonesia.

Zeekr's Strategy

Despite these challenges, Zeekr is moving forward with its launch plans:

1. Introduction of the Zeekr X: The company is bringing its compact electric sports utility vehicle to the Thai market, targeting the luxury car segment.

2. Pricing Strategy: Zeekr is offering two versions of the Zeekr X - the Standard version starting at 1,199,000 baht ($33,180) and the Flagship version at 1,349,000 baht.

3. Localization: The Thai version of Zeekr X includes localized features such as Thai-language navigation and vehicle controls.

4. Retail Expansion: Zeekr has opened four flash stores in Bangkok and plans to expand to 14 stores across Thailand by the end of 2024.

5. Regional Growth: The company aims to enter other Southeast Asian markets, including Cambodia, Singapore, Malaysia, Myanmar, Indonesia, and Vietnam, by the end of 2024.

Market Positioning

Zeekr is positioning itself as a premium brand and has explicitly stated it will not engage in price-cutting tactics. Chen Yu, Zeekr's vice-president, emphasized that such strategies could damage the reputation of Chinese EVs and erode consumer trust.

Future Plans

If the Zeekr EVs receive a positive response in Thailand, the company will consider establishing an EV factory in the country. Zeekr has set an ambitious sales target of 2,000 cars in the Thai market for the current year.

Zeekr's expansion into Thailand amid a challenging market environment demonstrates the company's confidence in its product and long-term strategy. As the EV market in Southeast Asia continues to grow, Zeekr's bold move could position it as a key player in the region's automotive future, despite the current sales dip in the premium segment.