Can Leapmotor Save Stellantis in the Shift to Electric Vehicles?
In a rapidly changing automotive landscape, Stellantis, the multinational giant, is navigating a course fraught with challenges. The company, which includes brands like Peugeot, Citroen, and Jeep, saw its profits plummet by 70% in 2024, and the departure of its CEO, Carlos Tavares, at the end of the year underscored the pressures on the industry.
Stellantis appears to be turning to Leapmotor, a Chinese EV manufacturer, to help turn things around. While many traditional automakers have struggled to adapt to the shift to electric vehicles, Stellantis hopes that Leapmotor, a brand it partly owns, can provide a competitive edge. Could Leapmotor be the Stellantis marque that revitalizes the company’s performance?
Leapmotor joins the Stellantis group, a company formed from the merger of PSA Group and Fiat Chrysler Automobiles. Stellantis now has a portfolio of 15 brands, though not all brands are available in Europe. Leapmotor, founded in China in 2015, has seen Stellantis acquire a significant stake in the business. In 2024, Leapmotor International was launched in Europe, and Stellantis now owns 51% of this division, to bring the brand to a global market.
Why Leapmotor?
One might wonder why Stellantis needs another brand in its vast stable. However, Leapmotor potentially fills a crucial gap. When the shift to battery-electric vehicles (BEVs) began around 2020, Stellantis primarily offered a drivetrain featuring a 136hp motor and a 50kWh battery across various models. This platform, however, was shared with internal combustion engine (ICE) versions, limiting the benefits of dedicated EV design.
More recently, Stellantis has developed more advanced EV drivetrains, such as STLA Small and Medium architecture. While these platforms still support ICE, they’re designed with BEVs as the priority, enabling improvements over earlier designs. This advancement helped the new Peugeot e-3008 to offer more competitive features, such as larger batteries for over 400 miles of range.
However, vehicles built on these new Stellantis platforms still face a hurdle: higher costs. With the competition from Korean and Chinese brands intensifying in the EV market, affordability is key, making it difficult to stand out.
Stellantis’s Established Advantage
While new brands may offer attractive pricing, established automakers like Stellantis have the advantage of a well-developed support network, including dealerships and service centers. Stellantis is hoping that leveraging both its established infrastructure and the technology and low costs of Leapmotor will result in a powerful synergy. The Leapmotor cars entering Europe will tout innovative features and leading-edge safety technology.
Price is a crucial aspect of Leapmotor’s strategy. The T03, a small four-door hatchback, is entering into the U.K. market at a price of £15,995 ($20,500). The Dacia Spring starts at a similar price, but the T03 has an infotainment screen and more performance enhancing features. Leapmotor’s goal is to match the Spring on price but to surpass it with EV features and quality.
The C10, the other Leapmotor vehicle launched in Europe, is a mid-sized SUV costing £36,500 ($47,000). It offers premium features like a panoramic sunroof, heat-pump, heated and ventilated front seats. Other brands charge more for such amenities.
The Chinese Automotive Invasion
The Leapmotor venture is more than just an opportunity to import Chinese-made cars. The T03 is manufactured in Poland. The C10 is imported from China, but the next model, the B10, will be built in Slovakia and Germany. Leapmotor plans to release three more models by 2027, with the goal of offering premium features at competitive prices.
The increasing number of Chinese EV brands entering the European market, including XPENG, ZEEKR, Lynk & Co, and others, is increasing the competition. Stellantis appears to have embraced the “if you can’t beat them, join them” strategy with its Leapmotor International initiative. Although tariffs may temporarily protect European brands, they can’t compete in the global market against the Chinese brands. This strategy could help Stellantis stay in the game as Europe rapidly moves to electric vehicles.
