China's Leapmotor and Stellantis open orders in Europe for budget EVs

Leapmotor, a Chinese automaker, is poised to enter the European market with two electric vehicle (EV) models, as announced by the company and its partner Stellantis on Tuesday. This move signifies an expansion of their affordable EV offerings in the region.

The joint venture, known as Leapmotor International, is majority-owned by Stellantis with a 51 per cent stake. This partnership grants Stellantis exclusive rights to manufacture, export, and sell Leapmotor products outside of China, marking a pioneering arrangement for a traditional Western automaker.

The two models set to debut in Europe are the T03 compact car and the C10 SUV. The T03 will be available for orders starting from late September, with a competitive starting price of 18,900 euros (USD 20,990). Following closely, the C10 SUV will arrive in dealerships in October, priced from 36,400 euros. Both vehicles were unveiled to the European market for the first time near Milan on Tuesday.

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Initially, the T03 will be imported from China. However, plans are in place to assemble this model in Europe at Stellantis' Tychy plant in Poland. This strategic move could potentially help the brand circumvent European Union tariffs on imported Chinese EVs.

Stellantis CEO Carlos Tavares has also hinted at the possibility of manufacturing the C10 model in Europe, though specific details have not been disclosed.

The introduction of Leapmotor as Stellantis' 15th brand is part of a broader strategy to diversify and expand its range of affordable EVs. This initiative aligns with Stellantis' ongoing electrification efforts and aims to ensure compliance with EU emission regulations, particularly in light of the current soft global demand for EVs.

Tavares has taken a firm stance against the European auto lobby ACEA's call for relief from intermediate CO2 targets for cars and vans, which are set to take effect in the EU in 2025. He emphasised last week the importance of the industry being able to sell EVs at prices comparable to petrol models.

This partnership between Leapmotor and Stellantis shows a significant step in the global automotive landscape, blending Chinese EV technology with European manufacturing expertise. It also reflects the ongoing shift in the industry towards electrification and the increasing competition in the affordable EV segment.

As these new models enter the European market, they are likely to face both opportunities and challenges. The competitive pricing strategy could appeal to budget-conscious consumers looking to transition to electric vehicles. However, they will also need to contend with established European and other international brands in an increasingly crowded EV market.