The car manufacturer Leapmotor is in the spotlight after signing an agreement with the giant Stellantis around its electric cars. Why is this Chinese manufacturer so interesting?
Did the Franco-Italian-American group Stellantis choose the right partner by choosing to join forces with Leapmotor? The answer to this question will only be concretely verified in a few years. It will take time for all aspects of the agreement signed on October 26 between Stellantis and Leapmotor to be exploited by both partners.
In the meantime, the question arises of the legitimacy of this Chinese manufacturer, still little-known in Europe. Leapmotor has never really attracted international attention with its electric cars and technologies. However, it is not because the company does not make headlines in the media that the company does not offer interesting technological advances.
Lots of progress in just 7 years of existence
Leapmotor has a fairly short history. The Chinese company only saw the light of day in 2015. It is only from 2018 that we will hear about Leapmotor’s first developments on artificial intelligence dedicated to autonomous driving.
The brand’s first electric vehicle appeared on the Chinese market in 2019, before disappearing in 2021. Since then, 3 other models have hit the roads and a new concept will soon enter the production phase. Leapmotor has decided to essentially target the segment of Chinese electric cars from 20,000 to 40,000 euros, which in Europe would correspond to the segment of cars marketed between 40,000 and 80,000 €.
The T03 electric city car is somewhat of an exception to the rule in the manufacturer’s current catalog, since it is sold between €9,000 and €12,000 in China. This is the only model that, for the moment, has been exported to Europe – well, more specifically, to France. Which probably explains a somewhat timid start to sales with only 225 registrations.
In China, it is especially the C11 and C01 which correspond to the company’s true know-how. These two models offer superior performance to the competition on several points: good autonomy, spacious interior space and a variety of fairly advanced autonomous driving functions.
Leapmotor also has 7 vehicles planned to integrate their catalog by 2025. The Munich show was the opportunity to discover the C10. The other 6 models will be spread over segment A (micro-city car), as well as C and D, which corresponds to compact and family sedan/SUV models. If the models are designed to be 100% electric, they could be marketed with the range extender technology developed by Leapmotor, and which is of particular interest to Stellantis.
R&D and vertical integration are the two strong points of the company
More than the models themselves, it is the technologies developed by the company that are particularly interesting. A little earlier in the year, Leapmotor indicated that it was making its platform available to other manufacturers. It didn’t take long for Volkswagen to show interest in developing Jetta-branded models for the Chinese market. Stellantis was also in the ranks, more discreetly.
What interests a group like Stellantis is that Leapmotor develops all of its key components and software internally: from engine management to autonomous driving and the on-board system. An investment in R&D which gives it an advantage with total control of the entire value chain, and in particular good cost control. These are also the methods deployed by Tesla for years.
By developing cross-platform systems and electronic components from scratch, the brand has created elements that are highly modular to adapt to different models of electric vehicles. Profitability on research and development that large automotive groups like Stellantis have lost by massively subcontracting these developments.
The engineering phase is not the only element to which Leapmotor has paid particular attention. Manufacturing is also at the cutting edge of technology according to Leapmotor, using artificial intelligence to optimize processes. The company currently only has one factory in China which has a production capacity of 200,000 electric vehicles, but other projects are under study.
The best thing for Stellantis?
Leapmotor is not the sales champion in China, but the company’s rapid growth is enough to whet appetites. In a country where competition is fierce, the brand has been able to carve out a niche and intends to continue to progress locally, but also internationally. This will now be partly the role of Stellantis.
It’s not so much the models produced by the company that really interest a group like Stellantis. But these are all the invisible developments and processes put in place by the company to progress much faster than any traditional car manufacturer. It is therefore an interest in Leapmotor’s technology and know-how that must have attracted Carlos Tavares, boss of Stellantis. The resale of Leapmotor models in Europe and elsewhere is most certainly just a quid pro quo for the deal.
Will Stellantis find in Leapmotor’s solutions the keys to further increase the profitability of 100% electric models for the group’s 14 brands? This will all be interesting to follow over time.
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