Will FAW be joining Leapmotor?

According to Chinese outlet Cailian Press, FAW is planning to acquire a ten per cent stake in Leapmotor. The move would make the state-owned manufacturer a strategic shareholder, with plans to create broad resource synergies across the industrial chain. In short, FAW aims to leverage the structures Leapmotor has established.

For now, however, these remain plans. The proposal is currently “circulating and advancing” within relevant departments at FAW, as per the report. As there are no further details available, it remains unclear how much FAW is looking to invest (including any premium on the share price) and which exact advantages the group hopes to secure. It also remains to be seen how Stellantis would view another carmaker taking a stake in Leapmotor – in 2023, the multinational group invested around €1.5 billion, acquiring a 20 per cent stake.

Since then, Leapmotor has performed strongly. Sales rose significantly, reflected in its financials. For the first half of 2025, the company reported revenues of 2.43 billion yuan (around €290 million), up 174 per cent year-on-year. It also posted a first net profit of more than 30 million yuan (about €3.6 million). However, this surplus mainly came from financial income, investment gains and non-operating income. The operating business remains in the red, though the loss of 89 million yuan (€10.6 million) is far smaller than that of many other Chinese EV startups.

In addition to financial performance, the first joint vehicle project launched earlier this year appears to have convinced executives at First Automotive Works (FAW). According to Cailian Press, development is progressing quickly. The model, developed with Leapmotor and FAW’s Hongqi brand, is scheduled for market launch in the second half of 2026 – right on schedule. Insiders say further joint projects are already under discussion.

FAW clearly sees value in leveraging Leapmotor’s EV platforms and structures to boost its own competitiveness. But the 2015-founded startup could also benefit from such a deal – not only through financing but also via FAW’s far greater purchasing power. On the other hand, the slower decision-making processes of a large corporation could prove a disadvantage.

carnewschina.com, cnevpost.com

This article was first published by Sebastian Schaal for electrive’s German edition.