At a time when the cost of fossil fuels is skyrocketing and sustainability is becoming increasingly important, Latin American consumers are eager for greener vehicles, Geely Auto said.

(Image credit: CnEVPost)

Geely Auto, Zeekr -- both part of the Geely Holding Group -- signed the agreement to help fast-track Zeekr vehicles into the Mexican market.

Hong Kong-listed Geely Auto said in an exchange statement today that it signed an agreement with Zeekr on February 7 to purchase vehicles and aftermarket parts and accessories from the latter for resale in Mexico.

Geely Auto plans to cap its purchases from Zeekr at RMB 674 million ($93.7 million) in 2024 and RMB 1.56 billion and RMB 3.13 billion in 2025 and 2026, respectively.

At a time when the cost of fossil fuels is skyrocketing and sustainability is becoming increasingly important, Latin American consumers are eager for greener vehicles, the statement by Geely Auto said.

To achieve a more environmentally conscious future, Colombia has set a goal to have more electric vehicles (EVs) by 2030. Similarly, Chile has committed to selling only EVs by 2035, with the goal of creating an all-electric public transportation system in the long run, the statement noted.

Mexico has set a goal of having 50 percent of the country's market in hybrid or electric vehicles by 2040, with the goal of moving toward a 100 percent electrified vehicle market in the long term, according to the statement.

In the meantime, major dealers in Latin America have been actively increasing their efforts to promote and popularize new energy vehicles (NEVs), and Geely Auto believes that Latin America will become a highly valued market for NEVs in 2024, according to the statement.

The rapid entry into the Mexican market will provide a valuable opportunity for Geely Auto to establish an early initial foothold in the region, the statement said, adding that the strategic deployment of the Zeekr brand of NEVs will be of great significance, and the experience gained from the introduction of the Zeekr brand will be a key forward-looking advantage for the future expansion of the business into other Latin American countries.

Zeekr was founded in 2021 and its first model, the Zeekr 001, was launched on April 15, 2021, with deliveries beginning in October 2021 in China.

The company is entering international markets and has introduced its vehicles in countries including the Netherlands, Sweden, Germany, Kazakhstan, and Singapore to date.

Zeekr plans to enter a cumulative total of six European countries by the end of 2024, and expects its international presence to reach eight countries by 2025, according to the company's previously announced plans.

Zeekr delivered 12,537 vehicles in January, up 302.34 percent year-on-year, but down 6.97 percent from December, according to data it announced on February 1.

Zeekr's goal for 2024 is to deliver 230,000 vehicles, double from 2023, a company spokesperson told CnEVPost last month.

($1 = RMB 7.1945)

Zeekr aims to deliver 230,000 cars in 2024