- Leapmotor and FAW will work together on joint development of passenger NEVs and parts collaboration, and will explore the feasibility of deepening capital cooperation.
- FAW is one of the largest car companies in China, delivering over 3.2 million units in 2024.
Leapmotor (HKG: 9863) has entered into a partnership with China's FAW Group, the latest example of a new Chinese carmaker partnering with a legacy auto giant.
The two signed a memorandum of understanding on strategic cooperation on March 3 in FAW's headquarters city of Changchun, Jilin, in the presence of FAW chairman Qiu Xiandong and Leapmotor founder, chairman and CEO Zhu Jiangming.
The two companies will work together on joint development of passenger new energy vehicles (NEVs) and parts and components, and jointly enhance product competitiveness through the integration of their technologies, a statement from Leapmotor said.
They will also further explore the feasibility of deepening capital cooperation to enable both companies to realize industry-wide resource synergy, according to the statement.
FAW is one of China's largest car companies, delivering more than 3.2 million units in 2024, and its high-end Hongqi brand has seen growth for seven consecutive years.
Leapmotor delivered about 300,000 cars for the full year of 2024, exceeding its annual target and turning around net income in the fourth quarter, the statement noted.
Founded in 2015, Leapmotor is one of the first new car-making forces in China.
The company currently sells the T03, C01, C10, C11, and C16 in China, with all models except the T03 offering both battery electric vehicle (BEV) and extended-range electric vehicle (EREV) variants.
On October 26, 2023, Leapmotor said Stellantis NV (NYSE: STLA), Europe's second-largest carmaker by sales, would invest 1.5 billion euros ($1.6 billion) in it for a roughly 20 percent stake, making it the EV maker's largest outside shareholder.
On May 14, 2024, Leapmotor announced the formation of its joint venture with Stellantis, Leapmotor International, in which Stellantis has a 51 percent stake.
On September 24 of last year, Leapmotor announced that it had begun selling the C10 as well as the T03 in 13 European countries.
On January 10, Leapmotor showcased its EREV technology at the Brussels auto show in Belgium and launched the C10 EREV in Europe.
Since selling its vehicles in Europe and beyond in September 2024, Leapmotor had established more than 400 sales outlets in 13 European countries, with plans to expand to 500 by the end of 2025, it said on January 11.
Another new local car-making force, Xpeng (NYSE: XPEV), received an investment from Volkswagen in July 2023, and the two are now jointly developing electric vehicles (EVs), which they plan to bring to market in 2026.
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