Leapmotor Technology has weathered its “most challenging period” after reaching a significant milestone in July, with monthly global sales surpassing 100,000 vehicles for the first time. This achievement has positioned the Chinese startup among the top three new energy vehicle manufacturers in the country for three consecutive months, according to its founder.
The company is now in a phase where it feels a sense of achievement and optimism, said Zhu Jiangming during a press event for its new model, the A05, held on August 11. The Hangzhou-based automaker has successfully overcome its toughest hurdles and is aiming for even higher targets.
At the launch of the D19 model four months earlier, Zhu issued a cautious warning, emphasizing that the market’s limited capacity means not all of China’s 17 carmakers can survive. Survival hinges on maintaining profitability and achieving economies of scale.
In recent months, Leapmotor’s sales have climbed thanks to the rollout of several new models. The company was able to directly compete with major Chinese automakers after surpassing the 100,000-unit sales mark last month.
Analysts attribute Leapmotor’s achievement to three core factors: vertical integration, independent research and manufacturing, and competitive pricing strategies. However, Zhu emphasizes that these are just the surface. Once sales reach a certain volume, a systematic and platform-based approach is essential to sharing costs effectively.
The company projects that it will not increase production capacity blindly. Instead, it plans to keep its manufacturing facilities running at full capacity according to established plans. Thanks to flexible, platform-based manufacturing, Leapmotor’s factories can seamlessly connect and share production lines, explained Senior Vice President Cao Li.
Despite industry headwinds, such as declining sales and rising raw material costs, Leapmotor remains dedicated to meeting its annual sales goal. The company aims to sell one million units this year, including 100,000 to 150,000 units internationally, and expects to turn a net profit of approximately 5 billion yuan (around $741 million). So far, it has sold 457,800 vehicles from January to July, with 113,000 units exported abroad.
Major investor Stellantis holds a 19 percent stake in Leapmotor. The two companies jointly established Leapmotor International, in which the European automotive giant has a 51 percent stake. This joint venture manages sales outside mainland China.