Leapmotor International, the joint venture (JV) owned 51pc by US-European conglomerate Stellantis and Chinese EV pure play Leapmotor, has begun shipping the first batch of two Leapmotor BEV models from Shanghai to European ports in July. Sales are still on schedule to start in September across nine European countries.
“The first shipment of 800 cars is now on the way from China to Europe,” says Stellantis CEO Carlos Tavares. “The homologation process is moving properly ahead and delivering the expected approvals.”
One of the newly available products is the C10 e-SUV. Potentially more intriguingly, the other is the T03 five-door A-segment city car, a car the JV has also reportedly already started producing at Stellantis’ plant in Poland.
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The majority of Chinese-made EVs that have made their way to Europe have been larger, premium models. But among the more successful China-made EVs, outside of those manufactured by Tesla, include B-segment offerings such as the ZS from MG, the UK heritage marque controlled by China’s Saic, the Smart #1 from the 50/50 JV between Germany’s Mercedes and China’s Geely, and the EX30 from Sweden’s Volvo, which is also controlled by Geely, suggesting there is appetite for cheaper, smaller Chinese-made BEVs.
Renault Group's Dacia Spring is one of a few A-segment offerings that have made the jump from China to Europe. It has also sold well, albeit with some concerns about its one-star NCAP safety rating.
And its sales in France have collapsed in the first half of this year after new French rules based on full value-chain carbon emissions saw Chinese-made vehicles like the Spring lose purchase subsidies. Across January-June, the Spring shifted less than 3,000 units and was France’s 82nd best seller, compared to 15,000+ and 14th place in the same period last year.
Specifically Chinese
Stellantis notes that the T03 has been ranked #1 in the JD Power Initial Quality Study in the small BEV segment, talking up its standards. But, while the firms note that the C10 will be able to meet the five-star NCAP rating standard, there is no specific mention of what NCAP rating they expect the T03 to achieve.
And they also admit that the C10, launched in China earlier this year, is “Leapmotor’s first global product, built according to global design and safety standards”, betraying that the T03, launched as long ago as May 2020, was developed with the differing tastes of the Chinese market primarily in mind.
Leapmotor CEO Zhu Jiangming on the other one hand, tries to downplay the more Chinese aspect of the T03. “Since the very beginning, the C10 and T03 models are designed to meet the high standards of global customers,” he maintains.
But, on the other, he argues that there is an advantage in having a product tried and tested in Chinese conditions. “China is the biggest and most competitive EV market in the world and our products have proved their value by being acclaimed by the local customers,” he adds.
Roomy
Stellantis also hails the T03’s “B-segment interior space”. This is a theme on which Jim Farley, CEO of US legacy OEM Ford, picked up at his firm’s Q” results, that small BEVs will offer greater internal space than ICE vehicles in the same external size class.
“With no engine or drivetrain, a smaller vehicle can have a much roomier package — actually the interior package of a class above with a small silhouette. That is a big advantage for customers versus ICE,” Farley explains.
Leapmotor International aims to leverage Stellantis’ extensive European distribution network, growing sales points for its vehicles on the continent to 200 by the end of this year and to 500 by 2026 “to ensure a high level of service for customers”. At least one Leapmotor model is planned to go on sale every year in the next three years.
The JV will also launch into the Middle East and Africa, Asia-Pacific and South America in late 2024 — with Stellantis having already talked up its potential in these markets.
“The shipment of Leapmotor C10 and T03 vehicles to Europe this month is a landmark moment in the partnership between Stellantis and Leapmotor,” says Tavares. “Relying on Stellantis’ strong business assets in Europe and the hard work of our companies’ teams on guaranteeing product innovation and quality, I strongly believe that Leapmotor’s electric vehicles will be widely accepted by European customers.”
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