Chinese electric vehicle maker Zeekr has announced its third-quarter financial results, revealing a complex picture of its performance. While the company celebrated a significant rise in year-over-year revenue and a reduction in net loss, it also faced a slight decline in revenue compared to the previous quarter. The report highlights both the company’s growth and the intense competition within the EV market.
Revenue and Sales Performance a Mixed Bag
Zeekr’s total revenues for the third quarter of 2024 reached RMB 18.36 billion, which is about $2.62 billion. This represents a strong 30.7% increase compared to the same period last year. The growth was largely fueled by higher vehicle sales from new models like the ZEEKR 7X and an expanded market presence.
However, the company’s revenue saw an 8.4% dip from the second quarter of 2024. This quarterly decline suggests challenges from a crowded market and increased competition among electric vehicle manufacturers.
Revenues from vehicle sales alone showed impressive growth, increasing by 42.0% year-over-year. This specific segment demonstrates strong consumer demand for Zeekr’s cars, even as other revenue streams, like batteries and components, experienced a slight decline.
Vehicle Deliveries Show Steady Momentum
In the third quarter, Zeekr delivered 55,003 vehicles to customers. This is a massive 51.13% jump from the 36,632 vehicles delivered in the third quarter of 2023. The significant year-over-year increase shows the company is successfully scaling its production and sales operations.
When compared to the second quarter of 2024, deliveries were nearly flat, with only a tiny 0.35% increase. This stability indicates that Zeekr is maintaining its production output despite economic pressures and a maturing market where growth is becoming more gradual.
The table below provides a clear comparison of vehicle deliveries over the last year.
| Quarter | Vehicle Deliveries |
|---|---|
| Q3 2023 | 36,632 |
| Q2 2024 | 54,878 |
| Q3 2024 | 55,003 |
Profitability Metrics under Pressure
The company’s gross margin, a key indicator of profitability, was 16.0% in Q3 2024. This is a slight decrease from 16.3% in the same quarter last year and 17.2% in the previous quarter. The dip was mainly caused by a lower average selling price for its vehicles and changes in its product mix.
A company representative stated that maintaining gross margin is challenging in the current market. To address this, Zeekr is actively working on strategies to improve its financial efficiency.
- Product Mix Adjustments: The company is shifting its focus toward selling more high-margin models.
- Cost Optimization: Zeekr is implementing new measures to make its manufacturing processes more efficient and reduce overall expenses.
These efforts are designed to boost profitability without sacrificing the quality of their vehicles.
A Closer Look at Financial Health and Spending
One of the most positive takeaways from the report is the reduction in net loss. Zeekr’s net loss for Q3 2024 was RMB 1.14 billion, a significant 21.7% improvement from the RMB 1.45 billion loss in Q3 2023. This shows the company is making solid progress towards becoming profitable.
Operating expenses presented a mixed view. Research and development (R&D) costs decreased slightly, partly due to lower share-based compensation expenses after the company’s IPO. In contrast, selling, general, and administrative (SG&A) expenses grew by 25.4% year-over-year, driven by increased spending on marketing and new model launches to gain a larger share of the market.
Future Outlook and Strategic Direction
Despite the fluctuating market, Zeekr’s leadership remains optimistic about the company’s future. They are focused on introducing new products, improving production efficiency, and expanding into new international markets to ensure long-term, sustainable growth.
“Looking ahead, we plan to leverage our technological advancements and strategic partnerships to strengthen our market position,” a spokesperson commented. The company’s main goal is to deliver great value to customers while achieving profitability.
With continued investment in innovation and a strong pipeline of new vehicles, Zeekr is positioning itself to navigate the challenges of the competitive EV industry and remain a key player.
