Stellantis-backed Leapmotor signed the Memorandum of Understanding (MOU) on strategic cooperation with the state-owned automaker FAW Group. The two parties will jointly develop new energy vehicles and cooperate on the parts supply chain.
New energy vehicle (NEV) is a Chinese term that comprises battery electric vehicles and plug-in hybrids (including range extenders). In 2024, China’s NEV sales took 40.9% of all new car sales. According to CAAM (China Association of Automobile Manufacturers), the NEV share will reach 48.6%.
Leapmotor is a Chinese NEV maker founded in 2015. Its current model line comprises five cars. Last year, Leapmotor delivered 293,724 vehicles, according to the China EV DataTracker. In 2024, this car maker made headlines as one of the world’s leading automakers Stellantis acquired over 20% of Leapmotor’s shares. This time, Leapmotor teamed up with FAW Group to accelerate the NEV development.
Leapmotor and FAW cooperation
Leapmotor and FAW Group chairmen signed the MOU of strategic cooperation in Changchun on March 3. This agreement includes the joint development of the new energy passenger cars and cooperation on parts. Leapmotor and FAW aim to enhance product competitiveness through the technical integration of both parties. They also will deepen capital cooperation.
FAW representatives underlined that the two parties would work together efficiently to promote strategic cooperation and achieve “fruitful” results. It is worth noting that FAW Group is actively developing the NEV segment. Last year, the state-owned car manufacturer sold over 339,000 “green” cars (including joint venture products), which is 41% more than a year ago.
However, FAW’s high-end brand Hongqi had a bumpy ride in the new energy vehicle segment. Its recent electric products (Hongqi EH7 and Hongqi Tiangong 08) suffered from slow sales. Other FAW-developed NEV products include entry-level electric cars. So, cooperation with Leapmotor can become the FAW Group’s key to leverage its presence in the NEV segment.
