Stellantis to buy stake in Chinese EV start-up Leapmotor
Robotic arms assemble cars in the production line for Leapmotor's electric vehicles at a factory in Jinhua, Zhejiang Province, China, on April 26, 2023.
Global carmaker Stellantis said on Thursday it will buy a 20 percent stake in Chinese electric carmaker Leapmotor, making it the latest European brand seeking a foothold in the country's highly competitive market via partnerships with local manufacturers.
Hangzhou-based Leapmotor only produces electric vehicles and is relatively unknown in Europe, despite selling 10,000 cars a month in China, while Stellantis is one of the world's largest carmakers, owning popular brands including Alfa Romeo and Jeep.
Under the deal, the Netherlands-based firm will spend 1.5 billion euros (US$1.6 billion) on the stake in Leapmotor.
The two firms will also establish a Stellantis-led joint venture, Leapmotor International, which will hold "exclusive rights for the export and sale, as well as manufacturing, of Leapmotor products outside China," Stellantis said.
"As consolidation unfolds among the capable electric vehicles startups in China, it becomes increasingly apparent that a handful of efficient and agile new generation EV players, like Leapmotor, will come to dominate the mainstream segments in China," Stellantis CEO Carlos Tavares said in a statement.
"It's the perfect time to take a leading role in supporting the global expansion plans of Leapmotor, one of the most impressive new EV players who has a similar tech-first, entrepreneurial mindset to ours," he said.
With 200 vehicles on French roads since last spring, Leapmotor is seeking to clear regulatory hurdles from the European Union in order to deploy more widely in France — its first target market in Europe.
The startup offers a compact model, the T03, priced at 26,000 euros — aimed at meeting market demand for entry-level electric cars.
Leapmotor told AFP in September that it was ready to ally with a European group, though it did not confirm rumors about a potential alliance with Stellantis.
The company's CEO, Zhu Jiangming, hailed the partnership with Stellantis as a "great milestone" in the firm's history.
