200,000, ZEEKR built an electric "Panamera"

Author | Chai Xuchen

Editor | Wang Xiaojun

Two years ago, a budget of 200,000 yuan couldn't even buy a BYD Han. Now, ZEEKR can easily help you realize your dream of a million-level high-end shooting brake.

Recently, the second shooting brake of the ZEEKR family, the 007GT, was officially unveiled, boasting "high configuration from the entry level." This time, ZEEKR has almost poured all its technological configurations into this new car.

Standard features include a 15.05-inch central control screen and AR-HUD head-up display system, the 8295 cockpit platform, and the KrGPT large model; performance-wise, it is equipped with driving control safety technology, a dual steering brake safety system, CCD electromagnetic damping, and an intelligent magic carpet.

At the same time, the 007GT once again prominently emphasizes safety. In addition to the high passive safety provided by the cage-like body, the 007GT is also equipped with the ZEEKR Intelligent Driving H7 solution as standard, featuring dual Orin-X and laser radar, significantly enhancing its adaptability to extreme weather and complex scenarios, and it also introduces the G-AES universal obstacle continuous automatic avoidance function, thereby improving active safety capabilities.

"I hope this function is never needed, but when it is, it can save lives," said Chen Qi, Chief Intelligent Driving Scientist of ZEEKR, candidly to Wall Street Insight.

It can be said that the 007GT is a culmination of ZEEKR's strengths, regarded in the industry as the electric version of the "Panamera." What excites the market is that the 007GT has made a significant downward adjustment in its positioning; with a shooting brake design, supercar performance, and the addition of laser radar, the official starting price for the entry-level model is directly set at 202,900 yuan, while the top all-wheel-drive version is only 232,900 yuan.

It's worth noting that previously, the price range for shooting brakes, which are hybrids of sedans and station wagons, combining the appearance and performance of sedans with the spacious luggage capacity of station wagons, was in the million yuan range. This time, the 007GT has directly delivered a dimensional blow to the "old money" crowd.

However, why is ZEEKR, which has always promoted an upward brand image, so aggressive in participating in the price war? Perhaps there is some underlying anxiety about scale behind this.

In fact, shooting brakes have always been ZEEKR's comfort zone. The first model, ZEEKR 001, once achieved monthly sales close to 15,000, helping ZEEKR successfully open up the market. It's important to note that before the 001, global shooting brake annual sales were only in the four-digit range. After the launch of the 001, global annual sales of shooting brakes approached 150,000 units in 2024, with 7 out of every 10 shooting brakes being ZEEKR.

However, as a model that has been on the market for four years, the growth momentum of the ZEEKR 001 has noticeably slowed since the second half of 2024. This year's first quarter saw average monthly sales drop below 4,000 units. Coupled with previous issues such as "three model updates in one year," the market reputation of the ZEEKR 001 has declined.

On the other hand, seeing the popularity of the ZEEKR 001, industry competitors have also been actively catching up, with the launch of Nio ET5T and Denza Z9GT, beginning to divert users and forcing the once "disruptor" ZEEKR 001 to face a transformation from pioneer to defender The sales of the main models have shrunk, and ZEEKR is inevitably under pressure, while CEO An Conghui has set a sales target of 320,000 units for the ZEEKR brand this year. The merged ZEEKR Group aims to achieve a million-level sales volume within two years. "A million-level is the key scale that determines whether an automaker can have better competitiveness," An Conghui told Wall Street Insight.

Clearly, ZEEKR needs a key ally to reshape its glory in the shooting brake segment.

Therefore, as the successor to the 001 in the shooting brake market, the launch of the 007GT is not only to refresh the pricing system of the shooting brake market but also to reconstruct the price perception of this niche market, becoming the popularizer of the all-around shooting brake.

However, the arrival of the 007GT has raised concerns about "internal competition" among the same brand. How will An Conghui think and plan about this, and can the merged ZEEKR Group balance sales and luxury positioning?

The following is a transcript of the conversation with ZEEKR Technology Group CEO An Conghui, Vice President Zhu Ling, Vice President Lin Jinwen, and Chief Intelligent Driving Scientist Chen Qi:

Q: The shooting brake itself is a niche market. Will the launch of the 007GT after the 001 cause internal product competition?

Zhu Ling: The ZEEKR 001 was previously a niche market of over one million yuan, but the sales of the 001 prove that the shooting brake market can be expanded. In terms of market performance, in the pure electric market above 250,000, the ZEEKR 001 sells better than any category, including sedans and SUVs.

Four years later, the ZEEKR 007GT and ZEEKR 001 will form the shooting brake family, just like Mercedes-Benz and BMW have their 5, 6, E, and 3, 4, C series. The ZEEKR 001 is positioned as a luxury shooting brake coupe, while the ZEEKR 007GT is younger and more technological, inheriting the positioning of the 3, 4, C series.

An Conghui: The 007GT targets the market range of 200,000 to 250,000, while the ZEEKR 001 focuses on the high-end market above 250,000.

Q: Why did ZEEKR decide to make shooting brake cars?

An Conghui: The ZEEKR 001 is called a shooting brake, but that is not a name we created. ZEEKR has been thinking about how to participate in market competition as a new brand and how to achieve brand elevation. The product philosophy of ZEEKR starts from the most challenging aspects, beginning with luxury and high-end, while also taking a differentiated path.

If the first model were an SUV or sedan, it generally wouldn't go wrong, but we thought, why can't we combine the advantages of sedans, SUVs, sports cars, and shooting brakes together? The ZEEKR 001 was developed according to this product standard.

After the car images were released, netizens became excited, saying, isn't this just a European shooting brake? For a car, being a shooting brake is a very high evaluation. Because shooting brakes were invented in Europe, initially used by European nobility. This is the origin of the ZEEKR 001's shooting brake concept.

We also specifically went to Europe to study many shooting brakes, further evolving based on the original shooting brake concept. The ZEEKR 001 is an all-around vehicle, and the technical difficulty of making an all-around vehicle is very high, but we have Geely's 30 years of automotive manufacturing foundation and Volvo's safety endorsement. After the ZEEKR 001 was launched, we expected monthly sales to be three to five thousand units, but we did not expect to gain widespread user recognition, with peak monthly sales exceeding ten thousand units From this, it can be seen that companies do not necessarily have to follow traditional planning thinking completely, but can innovate instead, fundamentally grasping user needs. We must strive to create demand, meet demand, and combine the two.

Zhu Ling: Looking back four years later, it is very appropriate for ZEEKR 001 to be an estate car. Sedans will be affected in terms of space, especially pure electric sedans which have battery issues that impact the second row and trunk space. SUVs, due to their high center of gravity, have slightly poorer handling feel; if SUVs are made larger and more powerful, pure electric drag is also a problem. ZEEKR 001 and ZEEKR estate cars can sell well because they ultimately meet customer needs, being good-looking, fun to drive, and practical.

Question: ZEEKR has laid out multiple categories such as estate/MPV, how does ZEEKR define its product matrix logic, and what are the future plans?

An Conghui: Luxury brands should have products in various market segments. For future planning, after ZEEKR 007GT, the next step for the ZEEKR brand will be two super electric hybrid products.

Question: The demonstration effect of G-AES technology at the launch event was impressive, but some audience members may think this presentation style is somewhat radical. What is ZEEKR's thinking?

Zhu Ling: We convey information very clearly; intelligent driving does not mean people do not drive. The G-AES system, in essence, is a driving assistance system, not a replacement for human driving. The original intention of G-AES is to provide safety assistance in special scenarios where the driver cannot react in time, which is consistent with the logic of systems like AEB—both are designed to provide more reliable safety guarantees for human drivers.

Chen Qi: Our goal is to improve safety; we hope this function is not needed, but when it is truly needed, it can save lives. In extreme scenarios, it can help when a person cannot react in time.

Data shows that even today, with AEB technology becoming increasingly mature, the accident rate of human driving is still significantly higher than that of intelligent driving systems. Our goal is to continuously optimize the response speed and accuracy of systems like AEB to avoid accidents as much as possible.

Safety is ingrained in ZEEKR's DNA; we have a dedicated safety analysis team that continuously studies various traffic accident cases, including traditional driving and intelligent driving scenarios.

Question: In the face of the current market competition, what specific strategies will ZEEKR implement starting in the second quarter to ensure the achievement of annual sales targets?

An Conghui: The sales in the first quarter were not far from the target, and there were no new products launched or price reductions in the first half of the year, along with organizational restructuring and mergers, so the first quarter's performance was not originally set high in the annual target.

In summary, the first quarter's performance was within our controllable range. The completion of organizational restructuring, the launch of our future new products, hybrid power, super electric hybrid technologies, the acceleration of ZEEKR's channel construction, and the rapid penetration of channels are all progressing quickly.

Lin Jinwen: Regarding the performance in the first quarter, we recognize the gap between market expectations and internal targets. After reviewing, we will optimize in the following areas: Channel aspect: We are accelerating the construction of sales terminals, focusing on increasing the proportion of large trading stores. Currently, there are 150 ZEEKR homes, and we will continue to promote large stores at terminals and in lower-tier markets.

Brand aspect: We will continue to strengthen the high-end product matrix, enhancing brand prestige through flagship models like the 009 Glory. We focus on the mainstream price range of 200,000 to 300,000 yuan, creating differentiated competitive advantages. Special attention is given to the service experience of high-net-worth user groups, establishing exclusive service channels.

Product aspect: We are entering a relatively intensive product launch period. Today, we have the 007GT, at the end of the third quarter, we will launch the 9X, and in the fourth quarter, there will be another large-sized SUV.

Overseas aspect: We have already established a presence in over 50 countries overseas, with more than 70 overseas stores. We will leverage the global resource advantages of Geely Holding Group, aiming for overseas sales to account for 10% this year. We will focus on super electric hybrid technology moving forward.

Q: With ZEEKR's overall brand positioning moving upwards, will the models released in the future trend towards being more expensive, and will ZEEKR adjust its sales expectations accordingly this year?

Lin Jinwen: Looking at the current market, the traditional luxury fuel vehicle market (above 500,000 yuan) has a large scale, and many traditional brands are shifting to the new energy sector. Luxury brands that can currently stand in the market are performing well. Since there are very few brands priced at 500,000 and above, moving upwards opens up greater luxury market space, and luxury brands need product technology depth and long-term endurance accumulation.

From a market logic perspective, the number of vehicles priced above 400,000 yuan in China is close to 20 million, and the replacement cycle for elite groups is short, with too few replaceable new energy options, which leads to the high-end market being less competitive than the mid-to-low-end market.

Moreover, moving upwards also depends on the product form. Relying solely on pure electric products is not wise. The larger the luxury vehicle, the more constrained the energy consumption and product design. Next week, ZEEKR will launch the ZEEKR 9X equipped with super electric hybrid technology.

An Conghui: For ZEEKR, relying solely on pure electric technology in the future market will affect the brand's upward breakthrough and market expansion, so we will take the lead in applying super electric hybrid technology. Currently, ZEEKR's pure electric models are competitive in overseas markets, and I believe super electric hybrid will also unleash market potential in international markets, further expanding market space.

Q: The 007 and 7X have strong product capabilities, but the current issue is that high-end products have high recognition, making it difficult for main models to break into the broader mass market. What are ZEEKR's thoughts on this?

Lin Jinwen: We have a clear internal path. Luxury cars have good prices and good gross margins, such as the relatively stable price of the 009. However, in the 200,000 to 300,000 yuan range, especially the 200,000 to 250,000 yuan price range, competition is very fierce this year, but ZEEKR does not engage in price wars, which is a dead end.

In terms of our high-end product layout, we are working to increase sales scale. For example, the transaction volume of the 009 in China last month was close to 3,700 units, with several hundred units sold overseas, totaling over 4,000 units.

In terms of service, on one hand, our brand has been established for a relatively short time, and the hardware of service channels, service standards, and service system construction have some gaps compared to competitors in the early years, but we are continuously catching up As long as ZEEKR's product strength continues to be online, I believe that with the passage of time in brand building, coupled with luxury models, this will definitely generate a "chemical reaction" that leads to sales growth.

On the other hand, starting from hardware construction and service system development, we continuously think about how to serve users well, participate in competition, and explore a path suitable for ZEEKR. It may not be the best, but it must be suitable for ZEEKR.

An Conghui: In the face of the difficulties in breaking through high-end luxury brands, ZEEKR has determination and a clear strategy. Not only does it compete with competitors in technology and products, but ZEEKR is also the first brand to jump out and compete in services. An automotive brand does not rely solely on price, products, and technology to participate in competition; it is not just about one strong point determining the company's ultimate competitiveness. ZEEKR needs to make further breakthroughs in service, and I believe these investments will pay off in the future.

Question: ZEEKR has newly established two major battle zones, North and South, between the user growth center and the 12 stations nationwide. Are there plans for further optimizing the marketing team?

An Conghui: The merger of Lynk & Co and ZEEKR into ZEEKR Technology Group has made many organizational adjustments. For the ZEEKR brand, corresponding internal adjustments have also been made, which is an effective strategy for us to respond to future market competition. ZEEKR is divided into North and South battle groups, with 12 battle zones, which will promote more efficient work from an organizational perspective.

Lin Jinwen: The organizational structure adjustment is systematic. By adjusting, more functions are placed into the battle groups, such as user operations and marketing functions, making the battle groups more comprehensive operational teams. This adjustment is made for a more complete organization.

Question: There has been new progress in the China-Europe negotiations recently, aiming to replace the original tariff scheme with a minimum price mechanism. Will there be corresponding adjustments or changes in ZEEKR's layout in the European market or other countries?

An Conghui: The future direction of China-Europe and China-U.S. economic and trade relations is uncertain. We always maintain a cautious attitude and have developed multiple response plans.

Question: ZEEKR is about to celebrate its fourth anniversary with 500,000 users. What kind of brand does the company hope to convey to consumers?

Lin Jinwen: We hope ZEEKR is a global new energy luxury brand. Although policies vary in different regions, this trend is unstoppable because China's technology, high-end manufacturing, software, algorithms, and other technologies are growing rapidly, and this speed is significantly faster than in other global markets. Therefore, we should lay out in advance, and ZEEKR currently has the capability to do so.

From the strategic perspective of ZEEKR and the layout of the holding group's brands, ZEEKR is definitely on an upward trajectory. This year's Q1 was indeed a bit difficult, but we will get through it and continue to rise. We now have the procurement capabilities of the entire large supply chain, and our cost control capabilities must be strong. ZEEKR absolutely has this capability, and strategically, we are also very clear that we need to continue to move upward.

ZEEKR's current high-priced models include the Glory, 009, 9X, and a large SUV to be launched in the fourth quarter. We want to build a luxury brand and move upward. Luxury requires not only strong product strength but also strong service system capabilities. There have been some shortcomings in the past few years, but we are gradually addressing them, which takes time In the past, we focused more on products, and the ZEEKR 001 was well remembered, but ZEEKR itself was not. The label of 001 is very clear, but the label of ZEEKR is not very clear. This is because the ZEEKR 001 has been in operation for a longer time, and later on, sibling models began to be launched intensively, but the brand did not keep up with the product release rhythm.

An Conghui: Cars originated in Europe, with luxury high-end brands represented by Mercedes-Benz, BMW, and Porsche. Later, when cars went to the United States, world-class companies represented by Ford emerged, using assembly line production to bring $800 cars into more households. With the arrival of the energy crisis, Japanese and Korean companies represented by Toyota adopted lean production methods, resulting in lower fuel consumption and prices for cars, and a batch of world-class companies and high-end luxury brands were born.

As the automotive industry enters the new energy development stage, it will certainly give rise to high-end luxury car brands with world-class competitiveness. ZEEKR has certain conditions and foundations; we must seize this opportunity.

When the ZEEKR brand was established, the strategic goal was to become a high-end luxury pure electric brand. Now that Lynk & Co and ZEEKR have merged, we aim to become a globally leading high-end luxury new energy vehicle group, with the goal of achieving a million-level sales volume within two years. "Million-level" is a crucial sales scale for an automotive company to determine whether it can have better competitiveness.

After the merger of the Lynk & Co and ZEEKR brands, ZEEKR will continue to move upward, while the Lynk & Co brand will continue to expand.

The sales issues in the first quarter are systemic, including the slight impact of the integration of Lynk & Co and ZEEKR on sales, but this has now been adjusted. I believe that with the subsequent new product launches, technological advancements, and channel development, sales will perform well. This year, we will also achieve good results in ZEEKR home and channel penetration.

Regarding the gross margin indicator, we will release the quarterly report for the first quarter of this year in May. Good financial performance is also very important for luxury car brands.

In terms of cockpit integration, Geely Automobile Group and ZEEKR Technology Group should also achieve better synergy. This is already in progress and will greatly help in better realizing the platform strategy, reducing R&D investment, and enabling rapid iteration of future products based on user needs.

The internal organizational structure has basically been completed, and I believe everyone will see the value reflected after the merger this year. The cockpit has actually become highly homogeneous, and the technological content is not very high. Now we need to focus more, become more platform-oriented, and iterate more quickly