Dive Brief:
- The new Stellantis joint venture with China-based electric vehicle startup Leapmotor has officially started operations, the automaker announced in a press release Tuesday, with plans to co-develop electric vehicles for global markets.
- Leapmotor International will launch two EVs in Europe in September: The T03, a lower-priced A-segment vehicle, and the C10, a D-segment vehicle designed for families. The T03 will have a 265-kilometer (165 mile) Worldwide Harmonized Light Vehicles Test Procedure range, while the C10 will offer a more premium ride and a WLTP range of 420 kilometers (261 miles).
- The two EVs will be sold in India and the Asia Pacific region (excluding greater China), the Middle East, Africa and South America in late 2024, the release said. The JV expects to introduce at least one new model every year in the next three years.
Dive Insight:
Along with gaining access to China’s booming new energy vehicle market, Stellantis will have the exclusive rights for manufacturing, exporting and selling EVs jointly developed with Leapmotor outside of China.
Legacy automakers like Stellantis are finding it increasingly more challenging to compete with automakers in China, as local manufacturers like BYD launch affordable, yet technologically-advanced, electric vehicles. By partnering with a local manufacturer, Stellantis aims to increase its competitiveness in global auto markets.
Stellantis announced a 1.5 billion euro ($1.6 billion) investment in October 2023 to acquire roughly a 20% stake in Leapmotor, which led to the JV agreement. Stellantis owns a 51% majority stake in the Leapmotor International with Leapmotor owning the remaining 49% stake.
Leapmotor, which was founded in 2015, developed a proprietary electric drive system for its vehicles and designed its own battery packs. Leapmotor’s EVs also feature integrated electronic and electrical architecture and autonomous driving capabilities. Self-developed and in-house manufactured parts accounts for 60% of the total vehicle cost of a Leapmotor EV.
“The creation of Leapmotor International is a great step forward in helping address the urgent global warming issue with state-of-the-art BEV models that will compete with existing Chinese brands in key markets around the world,” said Stellantis CEO Carlos Tavares, in a press release. “Leveraging our existing global presence, we will soon be able to offer our customers price competitive and tech-centric electric vehicles that will exceed their expectations.”
The JV will also help startup Leapmotor boost its own presence both in China and globally.
“The partnership between Leapmotor and Stellantis demonstrates a high level of efficiency, opening a new chapter in the global integration of China's intelligent electric vehicle industry,” said Leapmotor Founder and CEO Jiangming Zhu, in a press release. “We believe that this cooperation can give Leapmotor a boost to become a respected world-class intelligent electric vehicle company.”
Leapmotor International is headquartered in Amsterdam and led by former Stellantis executive Tianshu Xin, who was named as CEO of the joint venture.
