Zeekr, the premium electric vehicle (EV) subsidiary of Geely, has announced its plans to introduce two EV models in Israel later this year, making it the second Chinese automaker to enter the Middle Eastern nation following Xpeng (NYSE: XPEV).
According to a press release issued by Zeekr today, the company has partnered with Israeli dealer Union Group to establish a collaborative car distribution network in Israel.
Union Group’s automotive business unit, GEO Mobility, aims to launch the Zeekr brand in the Israeli market during the fourth quarter. In preparation for this, GEO Mobility will assemble a dedicated management team to establish experience centers and a service system for Zeekr, as outlined in the press release.
Zeekr’s lineup in Israel will include two models: the Zeekr 001 shooting brake and the Zeekr X city SUV. Pre-sales are expected to commence in the fourth quarter, followed by deliveries.
Chen Yu, Vice President of Zeekr, expressed optimism about the Israeli market and emphasized that this move signifies a significant stride in the company’s global business development.
Zeekr, established in 2021, introduced its first model, the Zeekr 001, on April 15, 2021, with deliveries in China beginning in October 2021.
On November 1, 2022, Zeekr launched its second model, the Zeekr 009 MPV, which started deliveries on January 15th.
The Zeekr X, the company’s third model, was unveiled on April 12, and deliveries commenced in China on June 12.
During the Shanghai auto show on April 18, Zeekr revealed its European strategy, followed by the announcement on June 27 of pre-sales for the Zeekr 001 and Zeekr X models in Europe.
With initial sales targeted in Sweden and the Netherlands, the Zeekr 001 and Zeekr X will be priced from 59,490 euros ($65,220) and 44,990 euros, respectively, in Europe. The company expects to begin deliveries within the year.
Notably, Zeekr has opted for a direct sales model in Europe, akin to Nio (NYSE: NIO). Conversely, it has chosen a traditional dealership model for its operations in Israel.
Earlier today, Xpeng announced its strategic partnership with Freesbe, one of Israel’s major automotive dealership groups, formerly known as Carasso Motors. This collaboration aims to develop Xpeng’s sales and service network in the Middle Eastern country.
The Middle East has emerged as an important market for Chinese EV companies looking to expand overseas, following their endeavors in Europe and Southeast Asia.
Prior to this year, EV buyers in Israel benefited from a lower purchase tax of 10 percent, compared to the considerably higher tax on conventional gasoline vehicles, which could reach up to 83 percent.
However, starting in January 2023, Israel increased the EV purchase tax to 20 percent, which will further rise to 35 percent from 2024 onwards. Despite this increase, the tax rates for EVs remain significantly lower than those for traditional gasoline vehicles.
Israel’s possession of domestic natural gas sources, relatively affordable electricity prices, and high fuel costs have contributed to the favorable conditions for the growth of the EV market in the country.
