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According to sources familiar with the matter, Leapmotor electric vehicles (EVs) are set to be manufactured at Stellantis’ Tychy plant in Poland. This move positions Leapmotor as one of the first Chinese automakers to commence European production.
Production Details:
Production of Leapmotor’s T03 small EV car, utilizing the semi-knocked down (SKD) technique, is anticipated to commence before the end of June. The SKD technique involves assembling partially constructed kits into finished vehicles, ensuring efficiency in the manufacturing process.
Stellantis selected the Tychy plant for its partner, Leapmotor, as part of a joint venture established last year. Tychy’s choice is attributed to its ability to maintain low costs, which aligns with Leapmotor’s objective of offering affordable EVs to a wide customer base.
Product Offerings and Market Expansion:
The T03 model, boasting a range of 280 kilometers, is already being imported into European markets such as France, with prices starting at approximately 20,000 euros. This model aims to enhance Stellantis’ portfolio of low-cost EVs and compete with offerings from Renault and BYD.
Leapmotor’s joint venture with Stellantis is poised for expansion, with plans to introduce sales of the C10 SUV in Germany, France, Italy, and Spain. This marks Leapmotor’s strategic move to penetrate overseas markets with tailored EV offerings.
Competitive Landscape and Trade Dynamics:
Chinese automakers are increasingly introducing lower-cost EV models to the European market, prompting legacy European automakers to develop competitive offerings. However, trade tensions between China and the European Union, coupled with investigations into government subsidies, pose challenges to market dynamics.
Strategic Investments and Future Prospects:
Stellantis’ acquisition of a stake in Leapmotor and the subsequent joint venture signifies a strategic endeavor to tap into the Chinese EV market. Chinese regulators’ approval of the joint venture underscores the potential for further collaboration and expansion in the EV sector.
