Leapmotor B10 compact SUV electric automobile. Photographer: Nathan Laine/Bloomberg
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Sales of Stellantis’s Chinese electrified vehicle-making affiliate Leapmotor in Europe might come at the expense of some of its mass-market brands but analysts expect on balance it will be a benefit.
The EV issue might startle Stellantis investors, who will still be reeling from news of its $26.5 billion electric car-inspired net loss last year. This was due in part to an overly ambitious EV strategy which failed due to weak demand and high costs.
Stellantis bought about 20% of Leapmotor in 2023. It paid close to $1.6 billion for the stake to take advantage of its success in China with its low-cost EV technology. A joint venture, Leapmotor International, is charged with selling the vehicles outside China.
Leapmotor T03, battery electric city car.
getty
Analysts have been speculating about Leapmotor’s role for Stellantis, which has already begun to establish itself in Europe with sales of the little and extremely cheap ($21,500 after tax) little TO3. Now it is introducing much more ambitious models like the B10 EV compact SUV (see review) to join the bigger C10 SUV. Three more models will be launched in Europe by the end of 2026, including an EREV (extended range electric vehicle) version of the B10, a small SUV the BO3, the BO5 EV hatchback and later the smaller AO5 hatchback.
Instant dealerships
Not all Stellantis brands will offer Leapmotor sales and service but many larger ones will. That means Citroen, Peugeot, Opel, Vauxhall, Jeep and Alfa Romeo dealerships near you might sell Leapmotors. That instant dealership network gives Leapmotor a big advantage over even giant Chinese interlopers like BYD, SAIC’s MG, Chery and Geely. But if Leapmotor is successful, this might be at the cost of EVs sold by Stellantis’s mass-market brands, otherwise known as cannibalization. According to a report from Reuters, Opel is planning to sell a version of a Leapmotor EV, to be produced at its Zaragoza, Spain factory. An Alfa Romeo-badged Leapmotor EV might follow.
“Leapmotor was a risky bet when Stellantis decided to invest in it. And I must say that it was the right one,” said Felipe Munoz, an industry expert who runs the industry research platform Car Industry Analysis.
Leapmotor gives Stellantis access to one of the most dynamic carmakers in China with one of the highest growth potentials, Munoz said in an email exchange.
More technology, better perceived quality
“But at the same time, Stellantis is opening the door to a new rival to its own brands in Europe and South America. The competitiveness of Leapmotor cars can play against the lack of competitiveness of cars from (its own brands) Fiat, Opel, Peugeot, and Citroen. These made-in-China Leapmotors feature more technology with better perceived quality,” he said.
Leapmotor C10 mid-size SUV (Photo by Sjoerd van der Wal/Getty Images)
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“I definitely see some cannibalization. It is inevitable when you have 14 brands and add one. However, the success of this operation will depend on how correctly Stellantis manages this brand in Europe, hopefully in a different way from how it currently manages its other brands, and how they integrate it,” Munoz said.
Munoz said Stellantis will have to decide whether to push the Chinese brand on its own, or use it to rebadge its products under its traditional brands.
Investment bank UBS liked the idea of Stellantis using Leapmotor technology to make Opels.
Improve competitiveness
“We think the potential co-development, if it materializes, could strengthen Stellantis’s EV offering, lead to faster innovation in an asset-light manner and therefore improve competitiveness,” UBS said in a report.
Stellantis could further expand manufacturing deals with other Chinese firms, UBS said.
“(these types of deals) could have a negative read-across for other incumbent (manufacturers) in Europe, especially Renault and Volkswagen, but also the Japanese and Korean brands,” UBS said.
Jamel Taganza, vice-president of French auto consultancy Inovev, agreed Leapmotor is likely to take sales away from its brands like Citroen, Opel and Fiat.
“Stellantis appears to be taking a pragmatic approach. Chinese carmakers are already establishing themselves in Europe and expanding their presence, with or without the support of European carmakers. Facing this reality, Stellantis has chosen to partner with Leapmotor, supporting the brand’s development while also benefiting from its sales growth and technological, notably in EV and REEV,” Taganza said in an email exchange.
Beyond simple distribution
“This strategy goes beyond simple distribution, as illustrated by plans for a future Opel model based on a Leapmotor platform to be produced in Zaragoza. However, Leapmotor will not only compete with established European brands but also face direct competition from other Chinese low/middle price companies, such as Chery, with Omoda and Jaecoo, Geely, and SAIC with MG,” he said.
By the end of 2025, Leapmotor held around 0.2% of the European market, including the U.K., with sales of about 31,000. It is reasonable to expect volumes to reach around 50,000 in 2026, a market share of roughly 0.6%, Taganza said.
Leapmotor B10
Electric motor – 215 hp permanent magnet synchronous
Torque – 240 Nm
Gearbox – automatic one-speed
Battery – 67.1 kWh lithium ferro-phosphate (LFP)
Claimed range – 270 miles (WLTP)
Drive – rear-wheels
Acceleration – 0-60 mph – 7.8 seconds
Top speed – 105 mph
Price – £31,495 ($42,300 after tax)