Leapmotor Turns First Annual Profit as Stellantis Alliance Fuels Global Expansion

Leapmotor Achieves First Annual Profit

Chinese EV startup Leapmotor has reported its first full-year profit, marking a major milestone in its growth trajectory.

The company posted a net profit of approximately 538 million yuan (about $78 million) for 2025, reversing a 2.82 billion yuan loss recorded in the previous year.

This turnaround highlights the company’s improving financial performance as vehicle deliveries and scale continue to increase.

Leapmotor posted a net profit of about 538 million yuan.

Strong Sales Drive Profitability

Leapmotor’s profitability was largely supported by strong vehicle sales growth, as the company rapidly expanded its lineup and production scale.

The company delivered close to 600,000 vehicles in 2025, reflecting significant year-on-year growth and placing it among the fastest-growing Chinese EV makers.

This surge in deliveries helped improve margins and reduce losses, allowing the company to reach profitability earlier than many EV startups.

Stellantis Partnership Accelerates Global Expansion

A key factor behind Leapmotor’s transformation is its strategic partnership with Stellantis, which is playing a central role in its international growth.

Stellantis acquired roughly a 20% stake in Leapmotor and formed a joint venture to handle overseas production and distribution.

Through this alliance, Leapmotor is rapidly expanding into global markets using Stellantis’ existing infrastructure.

Key benefits of the partnership include:

• Access to established global dealer networks
• Localized production in Europe
• Faster entry into international markets
• Reduced regulatory and tariff barriers

The joint venture, led by Stellantis, is responsible for producing and selling Leapmotor vehicles outside China, significantly boosting the company’s export capabilities.

Overseas Production and Export Strategy Gains Momentum

Leapmotor is accelerating its global footprint, with plans to begin vehicle production in Europe, including at a plant in Spain starting in 2026.

The company is also expanding into multiple regions through the Stellantis network, including:

• Europe
• Asia-Pacific
• Middle East & Africa
• South America

This strategy allows Leapmotor to scale exports more efficiently while reducing reliance on the domestic Chinese market.

Notably, exports have already shown strong growth, with overseas shipments increasing significantly as the company enters new markets.

Profitability Signals Shift in China EV Industry

Leapmotor’s first annual profit reflects a broader trend among Chinese EV makers, where scale, cost control, and global expansion are becoming key to achieving sustainable profitability.

Compared with earlier years of heavy losses, the company’s improved financial performance suggests that Chinese EV startups are entering a more mature phase of development.

Outlook: Global Growth to Drive Next Phase

Looking ahead, Leapmotor is targeting further expansion in global markets, supported by its partnership with Stellantis and growing export capabilities.

The company has set ambitious goals, including significant increases in overseas sales and long-term global volume targets, as it aims to compete with larger international automakers.

With profitability achieved and international expansion accelerating, Leapmotor is positioning itself as a rising global player in the electric vehicle industry.

Source: https://www.morningstar.com/news/dow-jones/202603163133/leapmotor-posts-first-ever-annual-profit-on-strong-sales https://www.bloomberg.com/news/articles/2026-03-16/leapmotor-turns-first-profit-as-it-expands-stellantis-alliance