FAW invests over €450 million euros in Leapmotor

Since spring 2025, FAW and Leapmotor have already collaborated on their first joint vehicle project. In the summer, rumours first emerged about FAW acquiring a stake in Leapmotor, and by early December, the speculation had become increasingly concrete.

The time has now come: just before the end of the year, both companies announced that FAW will acquire a 5% stake in Leapmotor for approximately 3.74 billion yuan (around 456.5 million euros). According to stock exchange documents, this reduces the stake of the largest individual shareholder, Stellantis, in Leapmotor to 18.99%. Stellantis acquired just over 20% in Leapmotor at the end of 2023.

What this new development means for the industry remains to be seen. Observers view the transaction as a first step towards consolidating the Chinese automotive market, where over a hundred brands are active. A ruthless price war is underway, which the Chinese government aims to curb with various measures.

Leapmotor itself has set highly ambitious goals: the company increased its sales in the recently concluded year by 103.1% to 596,555 units. For this year, founder and CEO Zhu Jiangming is targeting the milestone of 1 million vehicles sold. Within the next ten years, Leapmotor aims to achieve an annual sales volume of 4 million vehicles.

carnewschina.com, bloomberg.com, cnevpost.com (sales figures)