Zeekr vehicles could be locally assembled in Malaysia – plans for CKD production currently being evaluated

Zeekr vehicles could be locally assembled (CKD) in Malaysia, according to Alex Bao, head of Zeekr Southeast Asia. Bao said this when replying to questions during a Q&A session at the media test drive of the 009 MPV.

All Zeekr models sold in Malaysia, namely the 009 and X, are fully imported (CBU) from China. At present, CBU EVs are exempted from import duty and excise duty until December 31, 2025, as announced during the tabling of Budget 2023. It was originally set to end in December 31, 2023 before being extended in the first tabling of Budget 2023 to December 31, 2024.

On the other hand, CKD EVs are exempt from excise duty and sales tax until December 31, 2027, two years more than the original deadline, which was until December 31, 2025.

When asked how Zeekr will meet this, Bao said the approaching end of exemptions for CBU EVs is a problem for all EV brands and manufacturers. “But just don’t forget we are under a big group, which has a lot of facilities and manufacturing power here. So, we’ve been discussing this issue but it will take some time,” he explained.

“Of course, for the excise duty, many EV brands in Malaysia, they are also trying to talk with the government. There is still some uncertainty about whether they are going to end it (exemptions) or whether they will extend. We will be closely tracking this issue. By the same time, CKD local production is under preparation,” Bao added.

Following this, Bao was asked if the CKD project will possibly involve a “particular ‘P’ brand” as Zeekr’s partner, which points towards Proton that is currently constructing a new EV plant at its Tanjong Malim base. “Very possible, very possible. We are under the same mother!” Bao replied.

The “big group” mentioned by Bao refers to Zeekr Technology Group, which was formed following the merger of Zeekr and Lynk & Co in February this year – both are part of Geely’s portfolio of brands. Since the merger, Zeekr has revealed the 9X – its first hybrid model – and Bao was asked if the group’s hybrid models (including those by Lynk & Co) will make their way to Malaysia.

Bao replied by saying that EVs still have great potential, especially in some markets like Malaysia. However, there is still a need to diversify powertrain offerings. “I think in the near future, we have a plan or we are willing to offer some Zeekr hybrid right-hand drive products launched in right-hand markets,” Bao said.

Bao was also asked if Lynk & Co is coming to Malaysia and if it would be managed separately from Zeekr, to which he said there is a probability that both brands will be managed as a single entity in all right-hand drive markets. He added that Geely Holding has already set up its first overseas headquarters in Kuala Lumpur that will try to balance all the brands it has in its portfolio.

On a related note, Bao said the possible CKD project will also involve not just Zeekr models, but also those by Lynk & Co. “Of course including, because the purpose that we merge together is to have the opportunity to grow bigger,” he explained.

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