31/10/2023 (China) - Global carmaker Stellantis announced on Thursday that it had acquired a 20 percent stake in Chinese electric car maker Leapmotor, marking its entry into China's highly competitive market through local partnerships.
Leapmotor, based in Hangzhou, specializes in electric vehicles and sells 10,000 cars monthly in China but is relatively unknown in Europe. Stellantis, on the other hand, is a major global car manufacturer, owning renowned brands such as Alfa Romeo and Jeep.
As part of the deal, the Netherlands-based Stellantis invested 1.5 billion euros ($1.6 billion) in Leapmotor and formed a joint venture called Leapmotor International, with exclusive rights for exporting, selling, and manufacturing Leapmotor products outside Greater China.
Carlos Tavares, Stellantis CEO, highlighted the increasing dominance of efficient Chinese electric vehicle start-ups like Leapmotor in China's mainstream segments. He expressed enthusiasm for supporting Leapmotor's global expansion plans.
Leapmotor had introduced 200 vehicles in France, its first target market in Europe, and was working to overcome EU regulatory hurdles. Their compact electric model, the T03, priced at 26,000 euros, aimed to meet the demand for entry-level electric cars.
While Leapmotor had expressed readiness for collaboration with a European group, it hadn't confirmed earlier rumors of an alliance with Stellantis. CEO Zhu Jiangming hailed the Stellantis partnership as a significant milestone in the company's history.
Stellantis had a prior presence in China through a partnership with Dongfeng Motor to sell Peugeot and Citroen cars but had faced challenges, recently announcing plans to sell the joint venture's factories as part of an asset reduction strategy. Other European manufacturers, such as Volkswagen, had also sought partnerships with Chinese companies to tap into the local market. In July, Volkswagen announced a 600 million euro investment in Chinese electric vehicle manufacturer XPeng.