Zeekr Shows Growth in Deliveries but Decline in Profitability in Q1 2025

Zeekr, the leading premium electric vehicle (EV) group, has released its Q1 2025 financial results. The report shows impressive growth in vehicle deliveries and gross profitability, alongside a sharp decline in revenues compared to the previous quarter, primarily due to seasonal challenges in the global automotive market.

Growth in Vehicle Deliveries

Zeekr delivered 114,011 vehicles in Q1 2025, reflecting a 21.1% increase compared to the same period last year. This growth demonstrates the brand’s continued momentum. The Zeekr brand itself saw an impressive increase of 25.2%, delivering 41,403 vehicles. The Lynk & Co brand also performed well, with an 18.9% increase in deliveries, amounting to 72,608 vehicles. Notably, 52.4% of Lynk & Co deliveries were electric vehicles, indicating a positive trend in the EV market.

However, compared to Q4 2024, there was a significant drop in deliveries, a phenomenon the company attributes to seasonal factors in both the Chinese and global automotive markets.

Financial Results

Zeekr’s total revenue for Q1 amounted to 22,019 million yuan (3,034 million USD), representing a modest 1.1% increase year-over-year. However, there was a sharp 37.8% decline compared to Q4 2024. Vehicle sales revenue reached 19,096 million yuan (2,631 million USD), a 16.1% increase compared to the same quarter last year, but a 38.4% drop compared to the previous quarter.

Improvement in Profitability

Despite the revenue decline, Zeekr’s gross profitability shows a positive trend. The gross margin on vehicle sales increased to 16.5%, compared to 13.1% in Q1 2024 and 14.3% in the previous quarter. The overall gross margin rose to 19.1%, a significant improvement from 16.3% in the same quarter last year. Notably, the gross margin for the Zeekr brand reached a record 21.2%, a dramatic increase of 6.8 percentage points compared to last year.

Operating Loss and Net Loss

The company’s operating loss amounted to 1,259 million yuan (174 million USD), a reduction of 25.7% compared to an operating loss of 1,694 million yuan in Q1 2024. However, compared to Q4 2024, the operating loss increased by 16.3%.

The net loss decreased by 60.2% year-over-year, totaling 763 million yuan (105 million USD).

Strategy and Future Outlook

Andy An, CEO of Zeekr Group, emphasized the company’s significant progress with the full integration of Zeekr and Lynk & Co, which has expanded the global user base to over 1.9 million. “The initial technological integration of the two brands has already increased profitability through optimized R&D and shared platforms,” said An.

The company continues to launch new and exciting models, including the Zeekr 7GT, which was launched in April 2025 in China, and the Zeekr 9X, a new luxury SUV revealed at the Shanghai Auto Show. This is the brand’s first hybrid model, with a global launch expected in Q3 2025.

Trends and Future Directions

According to the company’s forecasts, it expects continued growth in the coming quarters, particularly with the launches of new models and the ongoing integration between the two brands. This combination is expected to generate additional synergies and drive further improvements in profitability.

Zeekr aims to continue leading the electric vehicle sector by investing in innovative new models and strengthening its brands. This growth supports its position in the competitive market, especially as the company prioritizes operational efficiency and optimal supply chain management.