Leapmotor’s Ambitious Global Expansion: A Strategic Play for EV Market Supremacy

Leapmotor, the Chinese electric vehicle (EV) startup, has emerged as a formidable contender in the global EV race. With record deliveries in 2025 and a first-half net profit, the company is now setting its sights on a bold 2026–2036 roadmap. According to its CEO Zhu Jiangming, Leapmotor aims to achieve 1 million global sales in 2026 and scale to 4 million units annually within a decade, with 60% of those sales originating outside China [3]. This analysis evaluates the feasibility of these ambitions and Leapmotor’s investment potential, drawing on its financial health, production capacity, and strategic partnerships.

Financial Resilience and Profitability

Leapmotor’s recent financial performance underscores its ability to scale sustainably. In Q2 2025, the company reported revenue of RMB 14.23 billion, a 156.61% year-over-year increase, while its gross margin surged to 14.1% in H1 2025, up from 1.1% in the same period in 2024 [3]. This turnaround, driven by economies of scale and cost optimization, has enabled Leapmotor to post its first-ever half-year net profit of RMB 30 million [2]. Such profitability, rare among Chinese EV startups, positions the company to fund its global expansion without heavy reliance on external financing.

Production Capacity and Product Strategy

To meet its 2026–2036 targets, Leapmotor is expanding its production footprint. Its existing Jinhua plant has an annual capacity of 200,000 vehicles, with a second Hangzhou facility expected to add another 200,000 units [1]. By 2026, local assembly in Poland—facilitated by its joint venture with Stellantis—will further boost output [4]. Product-wise, Leapmotor is prioritizing SUVs, with over 70% of its 2023–2025 model launches in this category [2]. Seven new battery-electric vehicles (BEVs) are slated for 2025, including plug-in hybrid variants, ensuring a diverse portfolio to cater to global markets [1].

Strategic Partnerships and Global Expansion

Leapmotor’s partnership with Stellantis is pivotal to its international ambitions. The collaboration has already established 600 sales and service points in Europe and plans to expand to 80 UK retailers by year-end [1]. By leveraging Stellantis’ global network, Leapmotor aims to enter India, the Middle East, and Africa, where Ghana’s 150% tax deduction for EV manufacturers (2026–2036) could catalyze growth [1]. Additionally, the joint venture’s Malaysia plant will produce right-hand-drive C10 models for markets like the UK and Australia, starting in 2026 [4].

Risks and Competitive Challenges

Despite its momentum, Leapmotor faces headwinds. The EV market is intensely competitive, with BYD and Tesla dominating through cost efficiency and brand strength [2]. Leapmotor’s reliance on SUVs, while lucrative, risks oversaturation. Moreover, its 4 million annual sales target by 2036 assumes sustained demand in emerging markets, which could be volatile due to economic or regulatory shifts. R&D investment in technologies like LiDAR integration will also be critical to maintain a technological edge [1].

Investment Potential

Leapmotor’s combination of profitability, production scalability, and strategic partnerships makes it an attractive long-term bet. Its CEO’s 2026–2036 roadmap aligns with global EV trends, particularly in Europe and Africa, where infrastructure investments are accelerating [1]. However, investors must monitor its ability to innovate and adapt to regional preferences. For now, Leapmotor’s execution of its European expansion and financial discipline suggest it is well-positioned to challenge industry leaders.

Source:
[1] Leapmotor Accelerates European Expansion with New Market Entries and Dealer Appointments [https://www.media.stellantis.com/uk-en/leapmotor/press/leapmotor-accelerates-european-expansion-with-new-market-entries-and-dealer-appointments]
[2] Trends in the electric vehicle industry – Global EV Outlook 2024 [https://www.iea.org/reports/global-ev-outlook-2024/trends-in-the-electric-vehicle-industry]
[3] Leapmotor CEO says global sales to hit 1 million in 2026, 4 million annually within a decade [https://ca.finance.yahoo.com/news/leapmotor-ceo-says-global-sales-170125642.html]
[4] Leapmotor International Begins Operations to Expand Global Electric Vehicle Sales [https://www.media.stellantis.com/uk-en/leapmotor/press/leapmotor-international-begins-operations-to-expand-global-electric-vehicle-sales-starting-september-2024-in-nine-european-countries-followed-by-other-key-growth-regions]