In 1943, during his exploration in Yunnan, renowned British biochemist Joseph Needham confronted a profound question upon witnessing the magnificent scientific achievements of ancient China: why did modern science not emerge in China? This inquiry is famously known as the "Needham Question." Over the years, it has sparked extensive discussions, encouraging scholars and enthusiasts alike to ponder the nature and evolution of scientific advancements in varying cultural contexts.

For a long time, a similar enigma has lingered in the automobile industry: why has the high-end luxury market been predominantly dominated by Western automotive enterprises such as BMW, Audi, and Mercedes-Benz (often referred to collectively as BBA), while Chinese automakers have struggled to establish their presence? This realization leads us to the current landscape of the industry in 2025, a crucial turning point.

We are witnessing an unprecedented challenge from Chinese automotive companies, exemplified by the recent consolidation of Zeekr Technology GroupThis newly united front represents a formidable challenge against the long-held dominance of BBA in the luxury automotive arena.

The rationale behind this formidable challenge lies in the fact that Zeekr consistently undertakes difficult yet correct objectivesEchoing the philosophy of Ray Dalio's "Pain is Gain", which suggests that true alpha often resides within the blind spots of market perception, Zeekr’s commitment to overcoming complexities has the potential to yield significant breakthroughs.

As the tides of time continue to flow, progress remains unstoppable.

The landscape of the Chinese automotive industry since 2024 can be encapsulated in a few pivotal points:

Firstly, the penetration rate of new energy vehicles has exceeded forty percent

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Companies excelling on the new energy vehicle front are now “reaping the rewards of their labors.”

Secondly, the growth of hybrid vehicles (including plug-in and range-extended types) has been significant, with pure electricity steadily increasingIn the current Chinese automotive market, new energy vehicles are at the forefront, supported by the contributions of hybrids and pure electrics, both of which are indispensable.

However, a surprising development has unfolded: the once high-and-mighty BBA, heavily laden with "premium" and "luxury" labels, has been facing declining momentum in China year after year.

By 2024, despite maintaining annual production and sales of around 700,000 units across the three German luxury car brands, all have experienced notable declines compared to the previous yearContinuing this trend, their domestic sales are anticipated to further plummet in 2025.

Many might question the significance of the high-end luxury car market, particularly those priced above 200,000 yuanYet, a brief glance at the histories of successful automotive companies reveals that this segment often commands the highest gross margins, bolsters substantial brand value, and enhances bargaining power.

As BBA descends into its twilight, Chinese automakers are leveraging advancements in new energy technology and intelligent features to make significant inroads into the luxury high-end domain

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The partnership between Zeekr and Lynk & Co has undoubtedly dropped a “bombshell” in the automotive sector.

On Valentine’s Day in 2025, Zeekr and Lynk & Co publicly announced their "registration"—the completion of equity transfer, officially naming the united entity as Zeekr Technology Group.

From the outset, Zeekr Technology Group boldly declared its audacious goal: “By 2025, become the BBA of the new energy era! Achieving sales of 1 million vehicles within two years!”

Their latest forecast includes selling 710,000 vehicles in 2025, marking a remarkable 40% growthThis would consist of 320,000 units under the Zeekr brand and 390,000 under Lynk & CoIf successful, this would result in Zeekr Technology Group surpassing BBA’s performance in the Chinese market, marking another “Sputnik moment” in the rise of Chinese strength within the high-end luxury automotive sector.

However, achieving these ambitious goals requires more than mere slogansThe strength of Zeekr Technology Group stems from undertaking challenges and embracing difficult yet accurate pursuits.

Zeekr upward, Lynk & Co wide-reaching.

Different automotive brands can be likened to various personas, which closely relate to consumer identity

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Zeekr Technology Group aims to clarify the relationship between the previously distinct Zeekr and Lynk & Co brands, defining their unique personas and refining their product positioning.

In simpler terms, Zeekr plans to adopt a “global luxury technology” direction, focusing on the market above 300,000 yuan, specializing in mid- to large-sized pure electric and super plug-in hybridsThe key phrase is: luxury tech upstart.

Meanwhile, Lynk & Co positions itself as a “global new energy premium brand”, targeting the market above 200,000 yuan and focusing on small pure electric and medium hybrid vehicles—keywords being youthful, trendy, and high-techAdditionally, existing internal combustion engine vehicles under Lynk & Co will transition entirely to hybrid electric vehicles (HEV).

With clearer positioning moving forward, the two brands can avoid competing against each other within similar vehicle classes while simultaneously aiding Zeekr Technology Group in expanding into more niche markets for various consumer demographics, thereby catalyzing overall sales.

For example, Lynk & Co will also divide its product lines for research and operations similar to ZeekrAccording to company plans, Lynk & Co will unveil two new models this year, one of which, the Lynk & Co 900, is slated for release in the second quarter

This model will feature the world’s first integration of Nvidia’s Thor chip, amplifying the intelligent driving experienceConversely, Zeekr plans to launch three new vehicles this year, including the 007 GT model in the second quarter and a full-size flagship SUV along with a large luxury SUV slated for release in the third and fourth quarters, respectivelyBoth will utilize the premier Super Electric Hybrid technology of the group.

Analysts suggest that the value battle driven by breakthroughs in independent smart technology and three electric (battery, motor, and power control) systems represents the latter half of the automotive industry, as a relentless price war that neglects vehicle features is now considered “obsolete tech.”

The efficiency of Zeekr Technology Group is exemplified through the highlights of its five models, showcasing that they are focused on a value battle rather than merely engaging in a price war.

Achieving such rapid integration has proven to be anything but effortlessFor instance, in terms of capital operations, the announcement of the merger to its realization spanned merely three months, involving equity transfer across three listed companies across China, the US, and EuropeThe company has since disclosed that the internal collaborative development mechanism has been established, streamlining processes for products and users under the unified leadership of the group, ensuring cooperation.

Synergistic Strategy, Cost Reduction, and Efficiency Enhancement.

The success of this integration hinges on the concept of scale

In the past, the R&D forces, supply chain, and management functions dispersed across two brands inevitably contained overlapping sections and inefficienciesUnder the unified system of Zeekr Technology Group, these processes have been consolidated, underscoring the value of producing at scale, enhancing quality control, and integrating research and development efforts.

In this new entity, the conjoined processes have facilitated a large-scale operation with reduced marginal costs and improved management while sustaining a flat hierarchyConsequently, the overall profitability of the organization has been poised for enhancement, with increased efficiencies across management and R&D.

Many believe that achieving such objectives necessitates cutting down on staff or departments, which can seem relatively straightforwardHowever, Zeekr Technology Group has audaciously chosen the more challenging path of system and mechanism innovation.

For instance, the restructured R&D department has pivoted from a “project-based” approach to a “product line-based” system, halving reporting levels and achieving a 15% increase in efficiencyTechnological sharing has also reduced research and development costs from 11% to 6%.

In terms of manufacturing, Zeekr Technology Group pursues a modular approach, emphasizing digital quality monitoring

Reportedly, management efficiency has soared by 20% as production facilities allow for flexible scheduling, facilitating shared use among Zeekr, Lynk & Co, and other sub-brands.

Regarding channels and marketing, the two brands will continue to operate independently within the domestic market, while backend maintenance and logistics functions will be sharedIn the European market, Lynk & Co has already leveraged local Volvo dealerships to enhance user outreachIn other emerging markets, both brands will integrate right from the front end, collaborating for mutual gain.

Lynk & Co has consistently led sales among Chinese brands priced above 40,000 euros for three consecutive years, while Zeekr's 009 achieved the top spot in the MPV category in Hong KongWith robust overseas performance, Zeekr Technology Group harbors grand ambitions, planning to establish over 200 stores and 1,000 rapid charging facilities globally by 2025, while Lynk & Co's 08 EM-P hybrid and Zeekr's first "800V global vehicle," the 7X, are set to launch abroadThese advancements owe much to the successful integration of the group and the judicious strategic decisions made therein.

Focusing on In-House Development, Pursuing Excellence.

One of the most telling reflections of Zeekr Technology Group's capacity to tackle challenging tasks is seen in its approach to technological innovation

Zeekr’s strategy could be summarized with two core principles: first, relentless pursuit of excellence; second, firm commitment to in-house research and development.

The following keywords encapsulate this approach:

Keyword 1: Zeekr Super Hybrid—

The previous SEA architecture and the golden bricks technology have already created disruptive impacts in the industryThe arrival of the super hybrid sets a new benchmark, with its 900V high-voltage architecture being a standout feature.

Keyword 2: Intelligent Driving—

Automakers are central contributors to AI applications within the automotive arena, and intelligent driving represents the forefront of automotive AI technologyThis multifaceted technology amalgamates sensors, artificial intelligence, communications, and automated control, enabling vehicles to attain various degrees of autonomous perception, decision-making, and control to fulfill driving tasksWith the evolution of AI large models, leveraging end-to-end technology for intelligent driving has emerged as a prevalent consensus within the industry.

Regarding intelligent driving, Zeekr Technology Group aims for comprehensive in-house research and development, focusing on high-level developments, which represents both a challenging yet potentially rewarding path.

In 2023, the proliferation of AI large models allowed for the emergence of end-to-end technology within intelligent driving, gradually becoming mainstream

By August 2024, Zeekr introduced its fully self-developed Oceanic Smart Drive 2.0, integrating AI end-to-end large models into their vehicles, marking Zeekr’s entry into the upper echelon of intelligent driving.

This advancement introduced the Urban Navigation NZP technology that enables the group to join a select group of five Chinese automakers capable of achieving "parking to parking" functionality, alongside Huawei, Xpeng, Li Auto, and Xiaomi.

The company stated that in April 2025, during the Shanghai Auto Show, a new vehicle utilizing L3 intelligent driving technology will be unveiled, anticipated to have production vehicle delivery capabilities by the end of the yearAmongst current prominent driving systems, including Tesla’s FSD, most operate at L2 level, with few domestic automakers expected to achieve L3 production in 2025.

With other models boasting a computing power of 2000 TOPS, the Lynk & Co 900 equipped with Nvidia's Thor chip stands out as an example of cutting-edge advancements.

It is evident that Zeekr Technology Group reaches generational advancements across computation, architecture, and application domainsWith the implementation of the fully self-developed L3 Oceanic Smart Drive, Zeekr Technology Group has positioned itself at the forefront of intelligent driving technology.

Keyword 3: AI Empowerment—

The pursuit of Zeekr Technology Group focuses on the highest-level models, secure usages, and a variety of application scenarios across the entire supply chain.

The self-developed Kr AI large model, in collaboration with the 8295 high-performance computing platform, delivers the industry’s first active AI large model cockpit

Additionally, the Kr AI large model has completed in-depth integration with the DeepSeek large model, offering users a service experience akin to that of a "cyber butler."

The company has introduced a newly established Smart Development Department which oversees the comprehensive application of AI across R&D and daily operationsBy 2024, more than 100 AI scenarios have been launched, with nearly 100 million AI model calls recorded.

Additionally, the Zeekr Technology Group embodies the highest safety standards, rooted in outstanding safety technologies typical of Nordic engineering, enhancing both safety and structural integrity in their vehicles through their battery, motor, and materials.

In Closing

A prevailing saying in today's capital and tech circles suggests: “Looking back on centuries of history, the essence of innovation lies in cost reduction and productivity enhancement.” Innovation becomes critical in achieving disruptive gains, establishing significant competitive advantages for companies.

The successful integration of Zeekr Technology Group will undoubtedly aid in refining its innovation system, improving innovation efficiency, and positioning itself as a leader within China’s high-end luxury automotive market, thereby reshaping the market dynamics both domestically and globally.

Isn't this the alpha of this publicly listed company?

As we approach 2025, marking a historic moment when autonomous high-end luxury Chinese automakers rise above BBA, the successful integration of Zeekr and Lynk & Co represents a critical achievement at the right time

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