Article Author: Yi Han Wu

Editor: Xianzhi Wu

On November 1st, Jekka Automotive’s second mass-produced car, the new luxury electric MPV ZEEKR 009, was officially released with a price range of 4.99 million – 5.88 million yuan, equipped with a dual-motor drive system, and a CLTC-combined maximum range of 822 kilometers.

At the press conference, Jekka CEO Conghui An also announced that Jekka’s delivery volume in October reached 10,119 units, breaking the monthly delivery volume of over 10,000 units for the first time. Since June of this year, Jekka’s delivery volume has continually set new highs, with over 55,000 units delivered to date.

While other new energy vehicle brands are still launching sedans and SUVs in hopes of securing a place in the market, Jekka Automotive has demonstrated that an unconventional strategy can also gain a foothold in the current highly competitive automotive market.

At the beginning of 2021, Shufu Li proposed the “Two Blue Geely Movement Plan,” a major strategy after reflecting on the failure of the Blue Action Plan. The plan mentions the formation of a brand new pure electric vehicle brand, which will directly participate in the competition of the intelligent pure electric vehicle market. As a result, Jekka Automotive was born.

Founded in March 2021, Jekka Automotive focuses on the pure electric vehicle market, becoming another brand after Lynk & Co to impact the high-end automotive market of Geely Automotive. Its first model, the ZEEKR 001, is a travel car, commonly known as a “tea can” car.

In the current market where various sizes of sedans and SUVs are intensively launched in the new energy vehicle market, Jekka Automotive has chosen to take an unconventional route by using a niche travel car as their first product. Their purpose may be to avoid direct competition with other new energy vehicle brands.## From “Clay Pot” Cars to “Bread” Cars

Subsequently, ZEEKR 001 proved with sales figures that niche car models can also achieve decent market performance. As of October 2022, ZEEKR 001 has delivered more than 55,000 vehicles, with a quarter-over-quarter growth of 90% in the third quarter. Zeekr CEO An Conghui also stated in a financial report call that the delivery target of 70,000 vehicles for the whole year should be without suspense.

Although some users complained about the inconsistency of ZEEKR 001’s parts with its publicity and delivery delays in the initial delivery period in 2021, in July 2022, An Conghui announced a free upgrade of the 8155 chip for new and old users of ZEEKR 001 in order to attract consumers. It is reported that the cost of the Qualcomm 8155 chip is 2,000 yuan, and Zeekr Automobile officially announced an investment of 300 million yuan.

Zeekr Automobile has spared no effort to impress consumers because a poor brand image will inevitably affect the performance of subsequent products.

And ZEEKR 009, Zeekr Automobile’s second car model, is an important car model for the brand to impact the high-end car market. It is necessary for Zeekr Automobile to do so.

ZEEKR 009 is officially positioned as a luxury MPV. To highlight its features, the front headlights consist of 154 LED light sources from 32 independent light groups with flowing light function; The front grille design is inspired by a large pipe organ and is quite similar to the Rolls-Royce Cullinan. Some netizens jokingly referred it as the “Cullinan Zeekr”.As an MPV model, the ZEEKR 009’s high-end luxury features are a significant contrast to the previously young and sporty brand image of JIDU Auto. However, it must be acknowledged that the MPV model is currently a better strategy for the brand to make a breakthrough into the high-end market.

Previously, MPVs were mainly used for high-end business receptions. However, with the fully liberalized two-child and three-child policies, some car companies are also vigorously promoting the concept of family travel, and family cars have gradually become a new trend in the market. The large, convenient, and comfortable features of MPVs match the needs of family cars, making them a popular choice for many families.

According to the China Passenger Car Association, the current market structure of MPVs has developed into a “dumbbell shape” and is gradually transforming into a “reverse pyramid shape”. Currently, the low-end MPV market is shrinking significantly, while the mid-to-high-end MPV market is growing rapidly. The penetration rate of new energy in the MPV market is less than 5%.

This means that the market demand for MPVs is increasing, while the market is still dominated by traditional fuel MPV models, and the number of new energy MPV models is relatively small.

Currently, some automakers have launched their own high-end new energy MPV brands, such as Dongfeng’s “Dream Family” Voyah, DENZA D9, and GAC Trumpchi M8 PHEV. Other automakers such as Great Wall, NIO, and Ideal are also in the planning stage.

JIDU Auto has already tasted the sweetness brought by the market gap through the travel car ZEEKR 001, so it will naturally not give up the new “blue ocean” of new energy MPVs. Moreover, this is also an opportunity for the brand to make a breakthrough into the high-end market.

From the travel car ZEEKR 001 to the luxury MPV ZEEKR 009, JIDU Auto is like a “brick”, moving towards where the market gap is.

From 1 to 9?However, due to Zeekr Auto’s strategy of targeting market gaps to launch related products, the company has difficulty making effective long-term plans. In addition, Zeekr Auto’s product naming seems relatively arbitrary and lacks any discernible pattern, similar to Lynk & Co.

Regarding Lynk & Co., its 01, 02, 05, 06, and 09 are SUV models of different sizes, and its sedan models consist of the 02 Hatchback, 03, and ZERO, making it difficult to discern the naming pattern and distinguish between models, leading to confusion among consumers when choosing.

In the early stages, Lynk & Co. performed well in terms of sales; however, later on, due to the lack of outstanding product features and quality problems, the company’s status began to decline gradually.

At least in terms of naming, Zeekr Auto does not seem to have departed from Lynk & Co.’s approach. Although the first model named 001 is not problematic, the second model is named 009, leaving a significant number of skipped digits. It’s unclear if Zeekr Auto has already planned its product naming or if it is blindly following current market trends, seen in recent car models with names like L9, D9, G9, etc., all ending in 9.

At present, Zeekr Auto’s products are relatively niche, and the overly simplistic model names do not leave a strong impression on consumers, which is not conducive to brand image building.

Previously, ZEEKR 001 enjoyed a unique advantage in the market as there were no similar car models during its launch; however, there are now some MPV car models on the market. As such, ZEEKR 009’s first-mover advantage is not significant. In other words, if ZEEKR 009 wants to replicate Zeekr Auto’s success with ZEEKR 001, it faces significant difficulties.

In general, ECARX has made a good start, but whether it will follow in the footsteps of Lynk & Co. depends on the company’s sales performance over the next two to three years to respond to doubts.

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.