China's FAW buys US$534 million stake in Leapmotor as EV firm sees deliveries jump in 2026

Stellantis-backed Zhejiang Leapmotor Technology has go the archetypal Chinese electrical conveyance (EV) shaper to person concern from a state-owned endeavor amid the beardown popularity of its affordable intelligent cars.

FAW Group, mainland China's oldest carmaker, has agreed to get a 5 per cent involvement successful the Hong Kong-listed EV assembler for 3.74 cardinal yuan (US$534 million) by buying an further 74.8 cardinal shares astatine HK$55.29 apiece, according to a banal speech filing by Leapmotor.

The landmark equity outlay by FAW underscores increasing capitalist assurance successful Leapmotor, successful which Stellantis owns a 19 per cent stake, contempt analysts' bearish income forecast for mainland China's car market, the world's largest.

Do you person questions astir the biggest topics and trends from astir the world? Get the answers with SCMP Knowledge, our caller level of curated contented with explainers, FAQs, analyses and infographics brought to you by our award-winning team.

"Leapmotor aims to execute yearly deliveries of 4 cardinal units a twelvemonth successful 10 years' time," laminitis and CEO Zhu Jiangming said astatine a media briefing connected Monday successful its office successful Hangzhou. "Leapmotor volition fortify our worth done the fine-tuning of our production, portion offering customers champion [driving] experiences."

Reaching that yearly transportation measurement would alteration Leapmotor to gaffe into the ranks of the world's apical 10 car vendors.

Zhejiang Leapmotor Technology CEO Zhu Jiangming attends the opening of a institution showroom successful Hong Kong connected June 11, 2025. Photo: Reuters alt=Zhejiang Leapmotor Technology CEO Zhu Jiangming attends the opening of a institution showroom successful Hong Kong connected June 11, 2025. Photo: Reuters>

The latest concern would besides pave the mode for FAW to jointly make caller EV models with Leapmotor, vice-president Li Tengfei said successful the property briefing. That would heighten absorption ratio astatine Leapmotor and assistance rise marque awareness, Li added.

Leapmotor was expected to present 1 cardinal vehicles successful 2026, which would construe into a much than 60 per cent year-on-year income increase, according to Zhu.

Achieving income of 1 cardinal units adjacent twelvemonth would apt vault Leapmotor into the No 3 spot among mainland's largest EV makers, down BYD and Geely, according to analysts.

Founded successful 2015, Leapmotor has go good known for its astute EVs with akin features to Tesla's Shanghai-made Model 3 and Model Y vehicles, but astatine little than fractional the price.

This year, Leapmotor has been 1 of the apical vendors connected the mainland's cutthroat EV market, arsenic full-year income are expected to transcend the 600,000-unit mark.