Leapmotor expands Stellantis alliance, posts first profit

Published Tue, Mar 17, 2026 · 12:43 PM

[HONG KONG] Chinese electric carmaker Zhejiang Leapmotor Technology posted its first annual profit on strong vehicle sales as it expands its partnership with Stellantis. The shares rose.

Leapmotor also said it is “actively exploring” cooperations on cars and components with the Franco-American-Italian carmaker, according to a Monday (Mar 16) filing, noting that some projects had already entered “advanced negotiation stages”.

Closer collaboration will offer Leapmotor more global opportunities while also helping Stellantis save on development spending and provide a shortcut to better competition with China’s BYD and Saic Motor’s MG in Europe, as well as local rivals including Volkswagen and Renault.

The pact will help Leapmotor navigate European regulations and potential tariff exemptions. Stellantis possesses “better intelligence access” and “strong expertise”, chief financial officer Li Tengfei said on an earnings call, confirming an earlier report by Bloomberg News.

“We believe that localisation is the definite direction for global expansion of Chinese EV (electric vehicle) companies,” said Li.

Looking ahead to 2026, the costs of components such as chips are adding pressure to margins. But Leapmotor will try to navigate the challenge through supply chain management, reduce development costs and other measures to avoid raising prices, co-president Michael Wu said on Tuesday.

“We don’t have any plans to hike or change the price systems,” said Wu. “We will have quite stable price levels this year.”

The Stellantis-Leapmotor partnership would be the first time for a major European or American automaker to rely on a Chinese company’s vehicle underpinnings and software to bolster models in Europe.

Stellantis is not alone in trying to benefit from Chinese expertise.

Volkswagen is making EVs on Xpeng’s platform, while its Audi brand is using partner Saic’s technology – though those models are not for sale outside China. Renault’s new electric Twingo is relying on the French manufacturer’s R&D operations in China for design and technology.

First profit

Net income for 2025 was 538 million yuan (S$99 million), although it missed the analyst estimate of 734.5 million yuan. Revenue doubled to 64.7 billion yuan after delivering nearly 600,000 vehicles last year.

The shares climbed as much as 7.4 per cent to HK$47.84 in Hong Kong on Tuesday, their biggest gain since November.

The firm has set an ambitious target of one million vehicle sales in 2026, banking on growth from the B-series, Lafa5 compacts and C10 SUVs.

Earlier this quarter, rival Nio reported its first-ever quarterly profit after a decade of cash burn. Li Auto’s earnings missed estimates, while first-quarter revenue expectations also trailed analyst expectations. BLOOMBERG