Leapmotor posts first profit, deepens Stellantis ties

Stellantis-backed Leapmotor posted a modest net profit of CN¥538m (US$78m) in 2025, its first annual profit since the automaker first began sales in 2019, with revenue doubling to CN¥64.7bn on the delivery of almost 600,000 vehicles. The result marks a sharp reversal from a net loss of CN¥2.82bn in 2024, as gross margins reached a record high of 14.5%.

Alongside the results, Leapmotor confirmed it is actively exploring an expanded cooperation with Stellantis on both vehicles and components, with some projects already in advanced negotiation. The announcement confirmed an earlier Bloomberg report and would represent the first instance of a major Western automaker using a Chinese company’s vehicle underpinnings and software as the basis for the models it sells in Europe. Similar developments are reportedly afoot in other regions: Nikkei reported on 5 March that Honda would bring its China-exclusive range of electric vehicles to Japan for the first time.

Stellantis acquired a 20% stake in Leapmotor in late 2023 for €1.5bn (US$1.77bn), forming Leapmotor International as the joint venture vehicle for overseas expansion. Global markets appear responsive to the automaker’s pure-electric lineup, with 67,052 units delivered outside China in 2025 and exports rising sharply in the fourth quarter to 29,000 units.

Leapmotor has established 900 sales and after-sales outlets across 40 countries, more than 800 of which are spread throughout Europe. A CKD assembly plant in Spain is on track to begin production of the B10 crossover in October 2026, with the B05 hatchback to follow in 2027, and a supporting battery pack plant is due to reach mass production in July 2026.

State-owned FAW provided a further vote of confidence during the quarter, acquiring a 5% equity stake for CN¥3.74bn. The investment adds a strategically significant domestic shareholder alongside global counterpart Stellantis, and broadens Leapmotor’s options for technology licensing—which are currently conducted primarily with FAW—as a potential recurring revenue stream.

Leapmotor is targeting a milestone one million vehicle sales in 2026, which would imply growth of roughly 68% on last year’s volumes. This will be supported by four new model launches including the D19 full-size SUV and D99 MPV, which will push the brand into the CN¥200,000-plus segment for the first time. 

The ambition faces a tougher domestic backdrop, however, with a reinstated 5% purchase tax on new energy vehicles this year and proportional trade-in subsidies that reduce support for the sub-CN¥150,000 models that form the core of Leapmotor’s current lineup. On the bright side, access to Stellantis’s European dealer network, manufacturing sites, and better regulatory standing gives Leapmotor a route into Western markets that most Chinese automakers are trying—in some cases struggling—to build from scratch.