Waymo Boosts Chinese Zeekr EV Imports Despite US Tariffs

Alphabet's autonomous driving subsidiary, Waymo, is notably importing thousands of Ojai model robotaxis from Chinese manufacturer Zeekr, despite the substantial tariffs imposed by the United States on electric vehicles (EVs) originating from China. This move is perceived as a strategy to navigate the tariff wall designed to shield the U.S. market from Chinese EVs, while simultaneously enabling Waymo to rapidly expand its autonomous vehicle fleet. By bringing these vehicles into the U.S. and integrating its proprietary autonomous driving technology, the company aims to optimize its operational costs.

Waymo initially partnered with Zeekr, a premium electric brand under Geely Holding Group, in December 2021 to develop a purpose-built vehicle for autonomous ride-hailing services. Under this collaboration, the Ojai model, designed at Zeekr's R&D facility in Sweden but manufactured in Ningbo, China, is shipped to the U.S. as a "base vehicle" or "glider." Upon arrival in the U.S., Waymo integrates its autonomous driving hardware and software, known as the Waymo Driver, at its facilities in Arizona.

This strategic approach allows Waymo to circumvent U.S. Commerce Department restrictions on Chinese-made connected vehicles, as all "smart, connected, or data-transmitting hardware" is installed within the U.S. While the U.S. increased tariffs on Chinese EVs from 25% to 100% in 2024, or even up to 127.5% according to some reports, Waymo pays tariffs on a lower base value for these stripped-down vehicles. This results in an estimated cost of $10,000 to $20,000 per unit for tariffs, making the overall cost manageable.

This development highlights how technology companies continue to seek avenues to leverage global supply chains, even amidst U.S. efforts to protect domestic automotive manufacturers and jobs. Waymo's utilization of Zeekr Ojai vehicles enables the company to scale its robotaxi services more cost-effectively and rapidly. The unit cost of the Ojai model, including autonomous hardware, is approximately $125,000, significantly lower than previous Waymo vehicles based on the Jaguar I-Pace, which cost around $200,000. This cost advantage could be a critical factor for the widespread adoption of autonomous driving services.

The U.S. government is implementing broad trade policies aimed at reducing dependence on China in critical sectors like electric vehicles and batteries, and promoting domestic production. U.S. Republican Senator Bernie Moreno has accused Waymo of bypassing federal restrictions on Chinese-made connected vehicles and has called for a ban on such imports. Waymo, however, asserts that its autonomous driving technology and connected components are developed and installed in the U.S., thereby ensuring data security. This situation exemplifies how U.S.-China trade tensions and national security concerns are influencing corporate strategies in the technology and automotive sectors.

Market analysts are closely monitoring the long-term sustainability of Waymo's import strategy and potential regulatory responses. It remains to be seen whether geopolitical tensions will compel Waymo to seek a domestic manufacturing partner in the future. As the company plans to deploy thousands of Ojai vehicles by year-end, the impact of this strategy on competition and deployment speed within the autonomous vehicle market will become clearer in the coming period.