Stellantis Invests $1.6 Billion in China's Leapmotor to Form Joint Venture and Boost Europe's EV Sales

Stellantis gains 20% stake in Leapmotor and exclusive rights to sell its vehicles outside China as part of its plan to leverage local EV technology and achieve electrification aims.

Stellantis has invested $1.6 billion in Leapmotor and formed a new joint venture, Stellantis International, in which Stellantis owns a 51% stake. This move comes a year after Stellantis ended its former joint venture with GAC Group in China.
By investing in Leapmotor, Stellantis acquires a 20% stake in the company and secures exclusive rights to manufacture, sell, and export Leapmotor vehicles outside of China. This investment falls within the framework of Stellantis' Dare Forward 2030 strategy, which involves a €50 billion+ investment over the next decade in electrification.
Leapmotor, which delivered roughly 111,000 new energy vehicles in 2022, currently targets the mid- to high-end EV market. However, it plans to cover A- to E-segments within the next three years, leveraging its technology capabilities and business synergies with Stellantis.
The collaboration with Leapmotor may bolster Stellantis' efforts in China, where it currently holds just a 0.3% market share. Stellantis is expected to leverage Leapmotor’s technology and manufacturing footprint to boost its sales in China.
This partnership offers Leapmotor an easier entry into the European market. The Leapmotor-Stellantis joint venture plans to commence car shipments starting in the second half of 2024. However, as with past Stellantis deals, there are concerns that foreign partnerships with Chinese players can be unsuccessful.