China’s Geely Automobile Group plans to begin making electric vehicles at Malaysian partner Proton’s factory as early as the first half of 2027, aiming to tap higher demand brought on by the oil crisis, as momentum slows at home.
Zeekr, Geely’s premium sub-brand, is preparing to use an existing Proton line to produce the fully electric Zeekr 7X midsize SUV, said Mars Chen, Zeekr’s vice president. Geely’s parent, Zhejiang Geely Holding Group, owns 49.9% of Proton.
“We will take another look at [Malaysia’s trade] position … and determine where the cars can enjoy the highest liquidity,” said Chen, who oversees overseas operations for Zeekr and its sister brand Lynk & Co, alluding to potential exports to neighboring countries.
Zeekr is among the Chinese carmakers reviving underutilized factories abroad to deepen their global reach, a strategy partly driven by rising trade protectionism. Malaysia, Zeekr’s first overseas production base, is expected to raise EV import taxes, starting July 1, after an EV subsidy program ended last year.
Chen added that the company has no plans to build new factories abroad, citing excess production capacity in “many places.”
Proton has added EV lines at its Tanjung Malim plant, which is operating at about 60% of its 20,000-vehicle annual capacity. This can be raised to 45,000 vehicles, the company says. It makes the e.MAS EV for domestic and export markets.
High gasoline prices have increased global interest in EVs, and Chen aims to more than double the combined overseas sales of Zeekr and Lynk & Co to more than 100,000 cars in 2026.
Middle East energy supply disruptions have lifted demand for Geely’s cars by at least 10%, Chen said, singling out Australia and South Korea. “Any country reliant on imported oil will experience the change in favor of EVs and hybrids.”
Zeekr, which is present in more than 50 countries, aims to enter four more markets by the end of the year, including South Korea, New Zealand, South Africa, and the UK.
In April, Geely raised its annual overseas sales target to 750,000 cars, up 17% from its previous goal of 640,000 cars, after first quarter exports jumped 126% from a year earlier.
“What is unquestionable is [that EVs offer] a combination of better technologies, fuel efficiency and lower maintenance costs to win customers,” said Chen, adding that oil prices remain “volatile.”
The US and Iran have signed an initial deal to reopen the Strait of Hormuz and extend their ceasefire by 60 days.
Geely is not insulated from weakness in China, the world’s largest auto market, where sales have plunged for eight consecutive months following the rollback of EV subsidies. In the first five months of the year, Geely’s total sales at group level rose only 1%, compared with a 158% gain in exports.
Investment bank Jefferies estimates Geely’s export volume will top its previous monthly record, reaching over 100,000 cars from June onwards, with its gross profit margins 10 percentage points higher than that of its domestic business.
“Geely’s overseas expansion [is] moving from initial market penetration to brand and network buildout,” Jefferies wrote in a research note last week. “Rather than building new overseas capacity, Geely partners with local manufacturers, including Proton and Renault, to achieve localization while limiting capex and navigating regulatory constraints.”
Chen said Geely is also weighing whether to convert an existing Renault plant in Brazil to manufacture its models, although no decision has been made.
This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.