Stellantis joint venture with Leapmotor imports first batch of battery EVs from China to Europe

Following the establishment of the joint venture between Stellantis and Chinese EV maker Zhejiang Leapmotor Technology in May this year, Leapmotor International shipped its first volume of battery electric vehicles (BEVs) from China to Europe in July.

The C10 SUV and T03 sedan models will be sold in nine European countries from September: Belgium, France, Germany, Greece, Italy, Netherlands, Portugal, Spain and Romania. The carmaker said it had plans to establish 200 sales points for its vehicles in Europe by the end of 2024 and will use Stellantis distribution channels, including Stellantis &You locations. It said it would increase to 500 sales points by 2026. Stellantis will be releasing more information about Leapmotor’s finished vehicle logistics operations in the coming weeks.

The arrival of Leapmotor in Europe comes at a time when European Commission is imposing tariffs of up to 38% on Chinese EV imports. Those charges come on top of an existing 10% levy on EV imports, meaning the total tariff for certain China-made EVs is 48%. A spokesperson for Stellantis said that its 51% stake in Leapmotor means it holds manufacturing rights outside of China and will benefit from the existing Stellantis manufacturing footprint in Europe.

“The models can be assembled in any Stellantis plant worldwide if economically viable,” said the spokesperson. “Localising production meets diverse market needs, with plant selection based on quality, cost, and available capacity, though specific destinations are not yet disclosed.”

However, Stellantis has confirmed that the first pre-production units of the Leapmotor T03 model have been assembled at the Stellantis manufacturing site in Tychy, Poland.

Stellantis’ spokesperson told Automotive Logistics: “The Tychy plant in Poland meets these criteria, ensuring customers benefit from Stellantis’ expertise through a pragmatic, case-by-case approach in partnership with Leapmotor.”

Stellantis also pointed out that its Citroën E-C3, which is made in Europe, starts selling below €20,000 ($21,600), which means it is able to compete with Chinese products. The Citroën ë-C3 is produced at Stellantis’ Trnava plant in Slovakia.

“Stellantis is agile to adapt and take advantage of any scenario and tariffs announcement will not deter our overall strategy with respect to Leapmotor in Europe, as we have taken this potential development into account,” said Stellantis’ spokesperson.

Stellantis said Leapmotor is the fourth largest Chinese new energy vehicle (NEV) startup in China by sales, looking at figures for June 2024

Leapmotor International also plans to launch the C10 and T03 models in India and Asia Pacific (excluding Greater China), the Middle East and Africa, and South America from the fourth quarter of 2024.

According to data from the China Association of Automobile Manufacturers, China exported 4.91m vehicles in 2023, surpassing Japan for the first time and becoming the world’s largest automobile exporter.