Particle.news
Download on the App Store

FAW Takes 5% Stake in Leapmotor as EV Maker Targets 1 Million Sales in 2026

A 5% FAW stake signals state backing that anchors a technology tie-up starting in 2026.

Overview

  • State-owned FAW will buy 74.8 million new Leapmotor shares for 3.74 billion yuan (about US$534 million), equal to a 5% holding, according to a stock filing.
  • Leapmotor and FAW will launch a technology partnership to develop and manufacture vehicles for FAW from 2026.
  • CEO Zhu Jiangming set goals of 1 million vehicle sales in 2026 and more than 4 million annually within a decade, following a near-doubling of domestic sales to 482,447 units in the first 11 months of 2025.
  • Overseas expansion includes starting production in Spain in 2026 with 40% local content, alongside an existing Stellantis-controlled joint venture for international sales and manufacturing.
  • Leapmotor’s CFO said neither FAW nor Stellantis intends to seek control of the company following the new investment.