Leapmotor, a once-overlooked Chinese electric vehicle start-up part-owned by Stellantis, has surged to the front of China’s fiercely competitive EV race. The carmaker posted record sales, its first-ever profit, while its expansion into Europe is growing at a rapid pace. What explains its success?
The outlook is positive. The Hangzhou-based company delivered more than 221,000 vehicles in the first half of this year, a 156% jump on the same period in 2024 and enough to secure the number one spot among China’s EV start-ups.
Last month alone saw 48,000 cars leave showrooms – more than double the figure from a year earlier and a sixth straight month of growth. In Belgium, the brand ranks in 36th place with 450 units sold so far this year. It still needs to make some progress, as its trails Xpeng (742 units), BYD (2,204 units), and MG (2.401 units), though the latter are not regarded as start-ups.
Cut-throat prices
Still, analysts predict that Leapmotor will shift half a million cars in 2025, a remarkable turnaround for the brand. Its rapid ascent has been mirrored on the stock exchange, where shares have doubled since the beginning of the year and climbed more than 200% from their low point last summer.
Investors are betting on a new wave of demand, both at home and abroad, as the company prepares to roll out fresh models at cut-throat prices.
Leapmotor also revealed that it started making money for the first time, reporting a net profit of 33 million yuan (€4.3 million) for the first half of this year, compared with a loss of 2.2 billion yuan (€286 million) a year earlier. Revenues surged 174%, with profit margins reaching a record high.
As the group has become only the second Chinese EV start-up to turn a half-year profit, the achievement stands tall. The company was only founded in 2015. From its early days as an outsider, mocked for lacking the profile of flashier rivals, it now finds itself as the start-up to beat.
Vertical integration
But what explains Leapmotor’s rise in the charts? Key to its success has been its focus on building most of its components – about 70% of them – rather than relying on outside suppliers.
That vertical integration, driven by co-founder Zhu Jiangming’s background in electronics and software, has allowed the company to undercut rivals by thousands of euros per car.
Europe has become the company’s next proving ground. Through Leapmotor International, its joint venture with Stellantis, the company sold more than 8,000 vehicles in Europe during the first half of 2025, compared with just 163 in the same period last year.
But of course, its range was minimal one year ago. The charge is being led by the affordable T03 city car, and the performance in Europe is mainly due to its presence in the showrooms of Peugeot and Opel. As the vehicles can rely on the same warranties and services, the collaboration issues trust.
Escaping tariffs
Looking at the future, plans are in place to begin assembling vehicles in Europe by 2026, most likely through an investment in Spain, a decision designed to sidestep looming EU tariffs on Chinese EV imports.
On its part, Stellantis is reportedly considering deeper ties in China. According to reports, the carmaker has held talks with local players, including Leapmotor, about possible investments or partnerships to bolster its presence in the world’s largest EV market.
Volkswagen, too, has been linked with Leapmotor, with its budget Jetta brand reportedly eyeing one of the Chinese company’s platforms to build low-cost EVs.
