Exclusive | Stellantis, Chinese EV maker Leapmotor near decision on European production
Leapmotor says production costs likely to rise by 10 per cent compared with former Poland plant, but has no plans to raise prices
Leapmotor and Stellantis were likely to make a decision on the matter in June or July, with the goal of commencing production around the middle of next year, said Michael Wu, Leapmotor’s co-president, in an interview on Monday. This was the first time the company revealed details about its decision-making timeline.
“The Poland factory simply assembled our vehicles using components made in China, which made it not exempt from tariffs,” Wu said. “This time, we will use components produced locally [in Europe].”
The move was likely to drive up Leapmotor’s European production costs by about 10 per cent, but it had no plans to raise prices, Wu said. The company’s current overseas strategy is focused on expanding its sales and service network to drive up volume, he said.
By the end of 2025, the company expects that at least 10 per cent of its vehicles sold globally will come from outside China, Wu said. He added that the firm expects to report global vehicle sales of 500,000 to 600,000 units this year. In 2024, Leapmotor reported sales of 293,724 vehicles; around 4 per cent of that total came from outside China.
Leapmotor, based in Hangzhou in eastern China’s Zhejiang province, started making its T03 EVs at Stellantis’ plant in Tychy, Poland, in June 2024. It was Leapmotor’s first production base in Europe. In May last year, the two companies set up a joint venture that gave Stellantis exclusive rights to build, export and sell Leapmotor products outside China.