Leapmotor Eyes New European Manufacturing Hub Amid Shifting Strategies
A groundbreaking decision is on the horizon for Leapmotor, a leading mainland electric vehicle (EV) manufacturer, as it plans to relocate its European production facilities. The relocation follows the cessation of operations at a Dutch facility in Poland earlier this year, with potential new sites identified within Stellantis factories across Spain, Germany, Italy, or Slovakia. This strategic move aims to enhance local manufacturing capabilities and streamline operations.
According to Michael Wu, Leapmotor’s co-president, a final determination regarding the new location is anticipated between June and July. The objective is to initiate production by mid-next year. Wu emphasized that the shift from assembling vehicles in Poland using Chinese-made components, which incurred tariffs, to sourcing parts locally in Europe, represents a significant evolution in their approach. Although this transition may increase production costs by approximately 10%, Leapmotor remains committed to maintaining current pricing levels. Instead, the company intends to prioritize expanding its sales and service networks abroad to boost sales volume.
By the close of 2025, Leapmotor envisions that over 10% of its global vehicle sales will originate from markets outside China. This marks a substantial leap forward compared to last year, where only about 4% of its total sales were international. With an estimated 500,000 to 600,000 units projected for global sales this year, Leapmotor underscores its dedication to fostering global partnerships and leveraging local resources to achieve sustainable growth. Such strategies not only solidify its presence in the competitive EV market but also exemplify the importance of adaptability and innovation in achieving long-term success.