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Zeekr Plans Wider European Expansion, Weighs Hybrid Models to Boost Sales

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Premium Chinese electric vehicle brand Zeekr plans to expand into additional European markets in 2026, including France, the United Kingdom, Italy and Spain, and is considering introducing extended-range plug-in hybrid models in the region, a company executive said on Friday.

Lothar Schupet, Zeekr’s acting head of European operations, told Reuters at the Brussels car show that consumer demand in Europe remains strong for plug-in hybrids. “When we look at the European consumer demand, the plug-in hybrid segment still has a high share,” he said.

Schupet said Zeekr, which is a unit of Geely, is currently assessing market demand for plug-in hybrid electric vehicles (PHEVs) and expects to make a decision within the next few months. Introducing PHEV models would also help the company avoid European Union tariffs on Chinese-made fully electric vehicles.

In December, the EU softened its stance on the effective 2035 ban on fossil-fuel cars, allowing PHEVs — which combine a combustion engine with battery-powered driving — to remain on sale longer than previously anticipated. This policy shift could create additional opportunities for automakers offering hybrid powertrains.

Zeekr currently operates in 12 European markets and entered Germany in December. In some countries, it sells vehicles directly to consumers. Beyond adding new major markets, the company plans to more than triple its European dealer network to around 100 dealerships this year, up from about 30 currently, Schupet said.

Geely took Zeekr private last year, and the brand is widely regarded in China as one of the group’s most valuable assets due to its strong premium EV sales. Zeekr has already launched plug-in hybrid versions of several models in the Chinese market, the world’s largest automotive market.

The brand entered Europe just over two years ago and has so far recorded modest sales. However, Schupet said Zeekr aims to scale up its presence and become “a major player in the premium segment for sustainable mobility” across the continent.

Chinese automakers outsell Renault and Audi in Europe on plug-in hybrid surge

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Chinese carmakers outpaced Renault and Audi in European sales in August, driven by soaring demand for plug-in hybrids (PHEVs), according to new data from JATO Dynamics.

Chinese brands, including BYD, Jaecoo (a Chery brand), and MG (owned by SAIC), placed models in Europe’s top-ten PHEV sellers, with the BYD Seal U, Jaecoo J7, and MG HS leading the charge.

By the numbers:

  • Chinese brands’ market share: 5.5% in August, with 43,500 sales (+121% year-on-year).

  • Audi sales: 41,300

  • Renault sales: 37,800

  • PHEV sales in Europe (28 countries): nearly 84,000 units, up 59% year-on-year.

  • Chinese PHEV sales: 11,000 units, up 14-fold.

  • BEV sales overall: up 27%, beating overall market growth of 5%.

Tesla’s Model Y remained Europe’s top battery-electric vehicle (BEV), though sales fell 37% from August 2024 despite rising BEV demand overall.

Why it matters:

Chinese automakers are using PHEVs as a stepping stone into the European market, where they are seen as a practical compromise between combustion and fully electric vehicles. With EU tariffs looming on Chinese-made EVs, carmakers like BYD are preparing to localize European production by 2028, reducing tariff risks and strengthening competitiveness.

Analyst view:

“There was strong demand for BEVs in August, however a 27% increase is less significant than it looks when you consider how widely they are being promoted,” said JATO’s Felipe Munoz, noting that growth is moderating despite heavy industry backing.

The surge in Chinese sales reflects how rapidly they are reshaping Europe’s auto market, challenging established brands with aggressive pricing, hybrid offerings, and plans for local expansion.

Xiaomi to Launch YU7 Electric SUV in July, Aims to Challenge Tesla’s Model Y in China

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Xiaomi, China’s tech giant and the world’s third-largest smartphone maker, announced Thursday that it will begin sales of its second electric vehicle — the YU7 SUV — in July, positioning it as a direct challenger to Tesla’s Model Y, the best-selling EV SUV in China.

The YU7 boasts a driving range of up to 835 kilometers (519 miles) per charge, surpassing Tesla’s redesigned Model Y, which has a maximum range of 719 kilometers (447 miles). Xiaomi did not disclose pricing or begin pre-orders but hinted that, based on configuration, the YU7 could be priced 60,000–70,000 yuan ($8,300–$9,700) higher than the Model Y’s base price of 263,500 yuan ($36,574).

“But we’ll talk about the price in July,” said Xiaomi founder and CEO Lei Jun during the product launch event.

Competitive Edge and Market Context

  • The YU7 is Xiaomi’s second EV following the SU7, a sporty electric sedan that launched last year with design cues from Porsche and competitive pricing under Tesla’s Model 3.

  • Since December, the SU7 has consistently outsold Tesla’s Model 3 in China.

  • Xiaomi has delivered over 258,000 SU7 units since launch, according to Lei.

Headwinds and Safety Concerns

Xiaomi’s growing EV business faces scrutiny after a fatal highway crash in March involving an SU7 in driving-assistance mode. The company has also apologized for unclear marketing practices that led to allegations of false advertising.

“We apologize for marketing that was not clear enough,” Lei acknowledged, amid efforts to restore consumer trust.

Beyond EVs: Xiaomi Chips Up Its Game

Alongside the YU7 announcement, Xiaomi unveiled its second self-developed chip, the Xring T1, following the earlier launch of its Xring O1. Lei claimed the Xring O1 rivals Apple’s A18 chip in performance — signaling Xiaomi’s deeper push into semiconductor self-sufficiency and hardware-software integration.

The simultaneous launch of smartphones, tablets, and EV innovations reflects Xiaomi’s ambition to become a vertically integrated tech powerhouse, blending consumer electronics, mobility, and AI-powered smart hardware into a unified ecosystem.