(Yicai) May 9 -- Zeekr Intelligent Technology Holding, whose parent firm revealed plans this week to take the electric vehicle maker private, is adding an agency-based partner model alongside its own sales network to fill distribution gaps in lower-tier Chinese markets and sell more cars faster.

In first- and second-tier cities where Zeekr has showrooms, it will maintain that sales strategy, Yicai learned from parent company Geely Automobile Holdings. Third-tier cities with Zeekr showrooms will continue in that direction, while those that are untapped or underperforming will adopt the new agency model.

The EV maker also plans to expand its reach in fourth- and fifth-tier cities through the agency model, where partners will handle sales, deliveries, and after-sales services. Customers will still place orders and receive invoices through Zeekr’s official channels, preserving the Ningbo-based firm’s make-to-order production system. 

All Zeekr vehicles, whether sold through its own stores or those of partners, will adhere to unified pricing and service standards to ensure a consistent user experience. This is the main difference from the dealership model, which allows dealers to set their own prices.

To quickly roll out the agency model, Zeekr will initially offer partner slots to investors within the ecosystems of Geely and its sister brand Lynk & Co, prioritizing those with regional distribution capacilities, market scale, and investor qualifications.

The first batch of partner stores under the agency model will be piloted in five cities -- Huizhou, Linyi, Quzhou, Sanya, and Urumqi.

Zeekr aims to sell 710,000 vehicles this year, including 320,000 of its own brand and 390,000 of the Lynk & Co marque. However, due to mounting market pressure, Zeekr only sold 55,000 units of its own brand in the first four months of the year.

Geely, which holds around 66 percent of Zeekr’s shares, said on May 7 that it will buy all of the stock it does not already own for USD25.66 per American depositary share (one ADS equals 10 shares), with Zeekr becoming a wholly owned subsidiary after delisting from the New York Stock Exchange. 

The move is aimed at creating a unified listing platform for Geely, enhancing the competitiveness of its passenger car business by fully integrating Zeekr's assets and resources, as well as helping Geely determine the unit's strategic direction to address global market and economic challenges, the company said.

During the Labor Day holiday earlier this month, Zeekr also announced a leadership reshuffle, naming Lin Jie, vice president of Zeekr and general manager of Lynk & Co, as its new head of domestic marketing and services. Since Lin’s appointment in 2018, Lynk & Co grew its annual sales to over 285,000 last year from 120,000.

Zeekr plans to deepen the sales channel synergy with Lynk & Co, leveraging the latter’s resources to penetrate lower-tier markets. It also aims to open nearly 200 new stores this year, expanding its total sales network to around 560 stores.

Editor: Futura Costaglione