Stellantis buys 20% of Chinese electric car manufacturer Leapmotor

By Redação AutoIndústria  |10/26/23 | Translated by Jorge Meditsch

Stellantis has acquired a nearly 20% share of Leapmotor, a Chinese electric vehicle manufacturer. The € 1.5 billion transaction foresees the creation of Leapmotor Internacional, a joint venture controlled by Stellantis with a 51% share, which will take care of the Chinese company’s exports, sales and manufacture abroad.

The partnership also aims to improve Leapmotor’s growth in the Chinese market, but should benefit even more from Stellantis’ global operations to expand Leapmotor’s presence in other regions, beginning in Europe. The first deliveries shall happen by the second half of 2024.

At the same time, Stellantis will take advantage of the electric vehicle environment already developed by its partner in China to accomplish its global plan to sell only electric passenger cars in Europe and have half of its sales mix in the United States electric by 2030.

According to Stellantis, Leapmotor’s electric vehicle offer complements its brands’ current technology and product portfolio.
“We noticed this is the perfect moment to take a lead role in supporting Leapmotor’s global expansion plans, one of the most recent and impressive electric vehicle agents”, remarked Carlos Tavares, Stellantis’ CEO.

The executive announced the deal this Thursday, 10/26, with Zhu Jiangming, Leapmotor’s CEO and founder. With the acquisition of 20% of the partner, Stellantis will have two places on Leapmotor’s management board and will name the joint venture’s CEO.

Just five years old and still unknown in the West, Leapmotor manufactures sedans and SUVs, especially in luxury segments of the Chinese market. Its first vehicle was presented in 2019.

In 2022, it sold nearly 111 thousand vehicles, nearly three times as in 2021. The volume should increase significantly in the next three years, when the brand intends to offer more affordable vehicles built on three platforms.

Leapmotor is highly verticalized, developing and producing components for its vehicles, including motors, as well as software, command units and even light systems.