Stellantis is thought to be exploring the possibility of working with Chinese electric car manufacturer Zhejiang Leapmotor Technologies to expand its presence in the world’s largest car market.

Soon after Volkswagen confirmed that it will jointly develop EVs in China with Xpeng using the firm’s G9 ‘Edward’ platform, private sources have revealed that Stellantis wants to follow suit. We already know that VW is also targeting a partnership with Leapmotor and Bloomberg reports that Stellantis is considering whether it should invest in the local EV manufacturer or if a business partnership is the better move.

Stellantis already operates a joint venture in China with Dongfeng Motor Group Co and builds various Peugeot and Citroen models locally.

Read: The Leapmotor C01 Is A Chinese EV With 542 HP And A $26,770 Pricetag

 Stellantis May Work With China’s Leapmotor To Develop New EVs
Leapmotor C05

Representatives from the car manufacturer have declined to comment on the report. However, partnering with a company like Leapmotor could be the ideal move for Stellantis chief executive Carlos Tavares who has floated the idea of an “asset-light” strategy in China. Through this strategy, Stellantis has already terminated its joint venture with Guangzhou Automobile Group Co which had been producing various Jeep models.

Tavares has been particularly outspoken about the threat that Chinese car manufacturers pose to legacy makers in Europe. If reports about Stellantis potentially partnering with Leapmotor are true, it could prove to be a case of if you can’t beat them, join them.

“The price difference between European and Chinese vehicles is significant,” Tavares said earlier this year. “If nothing is changed in the current situation, European customers from the middle class will increasingly turn to Chinese models. The purchasing power of many people in Europe is decreasing noticeably.”

The boss of Stellantis has also said that unless European politicians protect local industries, companies like it will be forced to move production to cheaper countries to reduce costs.

 Stellantis May Work With China’s Leapmotor To Develop New EVs