As 2024 comes to an end, various automakers have submitted their annual sales reports.

Among them, it is noteworthy that ZEEKR's performance in the pure electric luxury brand sector in China is truly outstanding. According to official data, ZEEKR sold 27,190 vehicles in December 2024, bringing their total sales for the year to 222,123 units, making them the sales champion among pure electric luxury brands in China.

This means that, in the fiercely competitive and fluctuating Chinese automotive market, ZEEKR not only maintains a leading position compared to other luxury pure electric brands but also captures market share from traditional luxury brands.

However, merely looking at the sales data for 2024 provides limited insights; it is necessary to consider the industry perspective and the company's historical performance to assess the true 'value' of 222,123 units.

Highly valuable, the first annual report after the listing is expected to exceed expectations.

Firstly, comparing historical performance, since ZEEKR began deliveries in October 2021, their sales have increased each year. In 2023, sales reached 118,685 units, a 65% increase from 71,941 units in 2022; in 2024, sales reached 222,123 units, an 87% increase compared to 2023, achieving nearly double growth.

From an industry perspective, ZEEKR's year-on-year growth rate of 87% reflects a significant 'value'. Rough estimates suggest that the growth rate of the New energy Fund industry in 2024 is around 40%, with pure electric vehicle growth at approximately 20%. Objectively, due to consumer mindset and other real factors, selling pure electric vehicles is typically more challenging compared to hybrid vehicles. ZEEKR, leveraging pure electric vehicles, has far outpaced the industry's growth, establishing a standout position.

While achieving growth, ZEEKR's average transaction price for new cars remains above 0.3 million yuan. It is important to note that the overall sales situation of luxury brands is affected by the automotive consumption environment, and last year, the share of vehicles priced above 0.3 million yuan showed an overall declining trend. From January to November, the cumulative sales of new cars with an average transaction price exceeding 0.3 million yuan were 2.1 million units, a year-on-year decline of 18.6%, which further highlights how challenging ZEEKR's achievements are.

Further calculations indicate that ZEEKR's sales target completion rate for 2024 is 96.5%. Compared to peers, this target achievement rate is higher than that of pure electric luxury brands such as Tesla and NIO, demonstrating ZEEKR's product competitiveness and brand influence.

In the author’s view, this is inseparable from ZEEKR's comprehensive model matrix, which creates differentiation among multiple models and attracts consumers with different needs in their respective market segments.

ZEEKR 001 firmly ranks as the champion of pure electric all-category sales above 0.25 million, and ZEEKR 7X has accumulated over 0.03 million deliveries within 75 days of its launch, setting the record for the fastest delivery of luxury pure electric models. It has also continuously retained the title of champion for pure electric SUVs above 0.2 million in China, while ZEEKR 009 has maintained its position as champion for pure electric all-category sales above 0.4 million for five consecutive months. ZEEKR's price range has now expanded to a broader range of 0.2-0.8 million yuan, and the results show that all models have firmly established their positions.

Around product strength enhancement, ZEEKR has continuously achieved results in intelligence and electrification, thereby supporting the brand's market appeal. For example, regarding intelligent driving, ZEEKR launched the Vast Intelligent Driving 2.0, truly achieving 'drivable everywhere and anytime there is a road.' For smart cabins, based on the Vast-M architecture, consumers have seen the 'ZEEKR Super Cabin,' which has realized leaps in space utilization, convenience, and flexibility, with no direct competing products currently in the market.

With the announcement of annual sales, what kind of performance ZEEKR will deliver for the entire year of 2024 is already taking shape.

Based on the annual sales leap to a new level, with the product average price stabilizing above 0.3 million yuan, and the high-end models like the new ZEEKR 009 and 009 Glorious driving prices further upward due to strong sales, ZEEKR's income for the entire year of 2024 is likely to achieve greater-than-expected growth.

In terms of profitability, with sales growth driving full capacity release, ZEEKR exhibits stronger economies of scale, optimizing per-vehicle costs and improving per-vehicle profit margins. Looking back at the first few quarters of this year, profitability has improved significantly year on year, and after excluding the impact of share-based payments, the quarter has even turned from loss to profit. Therefore, it is not difficult to predict that ZEEKR's profitability in 2024 is expected to achieve significant year-on-year improvement.

The fundamentals of any listed company are well reflected in the Capital Markets. ZEEKR's stock price turned around in August 2024, once hitting a historical high, and is currently hovering at a high level, with the company's Market Cap exceeding 7 billion USD. From a certain perspective, this is also a high recognition of ZEEKR; in the future, exceeding expected performance will further break through ZEEKR's value.

As we enter 2025, what new highlights does ZEEKR have?

Looking ahead to 2025, as a key year recognized by the Industry, market competition will upgrade, and the Matthew effect will continue, leading to further differentiation in the Industry.

Among them, some new automotive companies lacking growth and smaller in scale will accelerate their exit, making it their most urgent need to figure out how to stay in the game for non-head players. But for leading players like ZEEKR, investors are no longer concerned with whether ZEEKR can stay in the game, but rather, they can further expect more surprises from ZEEKR in terms of profitability.

According to An Conghui, President of Geely Holding Group and CEO of ZEEKR Intelligent Technology, ZEEKR will launch 3 new models in 2025, which will be released in the second, third, and fourth quarters respectively. In the second quarter, a station wagon based on the ZEEKR 007 architecture will be launched, in the third quarter a full-size flagship SUV will be introduced, and in the fourth quarter a mid-to-large luxury SUV will be released, both SUVs equipped with super electric hybrid power.

This means that the model matrix will continue to be improved, and with the power forms becoming diverse, ZEEKR will penetrate into more previously uncovered user groups, creating stronger momentum to achieve the sales target for 2025. Models like ZEEKR 001 already have sufficient influence and accumulated reputation in the market, which will likely enable stable performance in 2025. By then, ZEEKR's sales are expected to reach a new level, achieving a sales target of 0.32 million units in 2025, thus achieving stable profitability.

Currently, ZEEKR is very confident.

Firstly, regarding channels, as of December 31, 2024, ZEEKR has reached 538 global operational stores. By building an increasingly完善 user service system and accelerating channel development, ZEEKR's comprehensive model matrix will effectively reach users and enhance the brand's presence among customers.

According to Li Shufu, the president of Geely Holding Group and CEO of ZEEKR Technology, ZEEKR will continue to expand its coverage in third and fourth-tier markets in 2025. By the end of 2024, ZEEKR's coverage rate in domestic third and fourth-tier cities will be 61%, and it is expected to reach 81% by the end of 2025, an increase of 20 percentage points, facilitating further channel penetration in these cities and drawing in more customers and sales.

Secondly, in terms of Technology, ZEEKR recently launched the "Winter Conquest Technology." In summary, ZEEKR has demonstrated its strength in coping with low temperatures and snowy conditions, such as the industry's first nine-source heat pump, the only frost-free fast heating Air Conditioner available in the industry, a self-developed first-release 800V second-generation 'Golden Brick' Battery, and the industry's first 800V extreme cold liquid cooling fast charging pile, addressing winter travel challenges in northern areas.

From my perspective, to tackle low-temperature travel, ZEEKR's capabilities in overall vehicle Thermal Management, passenger cabin, three electric systems, and energy supplementation are robust. Additionally, ZEEKR's technological innovations to counter extreme cold conditions indicate that it can also excel in conventional environments, showing outstanding performance and ample stability. ZEEKR provides users with a safer, more convenient, and more comfortable travel experience, truly impressing customers with its products, which will lead to sustainable growth in sales volume.

Finally, in terms of organizational efficiency, ZEEKR has completed a further strategic integration with Lynk & Co after its IPO, and the new company is named "ZEEKR Technology Group." The two parties will communicate and collaborate in various areas such as products, technology, channels, and supply chains, effectively optimizing efficiency and costs, supporting high-quality development.

Therefore, considering the positive factors mentioned above, compared to 2024, ZEEKR is expected to accelerate even further in 2025. Its diversified products, extensive store network, and leading technological innovation capabilities warrant higher expectations for ZEEKR in 2025.

Conclusion

From an investor's perspective, ZEEKR is a rare investment symbol. As a key player in the high-end luxury car market, it possesses strong technological research and development capabilities, leading the wave of electrification and intelligence in the new era.

ZEEKR is one of the few luxury brands that can achieve sales targets with high quality. Moreover, having a single star model becoming the sales mainstay is common, and brands with multiple champion models like ZEEKR are rare. As the number of players remaining at the table decreases, ZEEKR can enjoy more market opportunities, ultimately showcasing strong profitability. From the current perspective, investors should take a closer look at ZEEKR.