Chinese electric car startup Leapmotor has confirmed that it is seeking foreign partners to license its technology to and that it will need to significantly increase sales if it is to survive an EV industry that is becoming increasingly consolidated.
Leapmotor has little presence outside of China where it sold almost 111,000 EVs last year, a significant increase from the 44,000 it sold in 2021. While recently speaking with Reuters, Leapmotor chief executive Zhu Jiangming revealed the firm is working on five new models underpinned by a unique platform that’s currently in development. The brand will also target exports in markets like Europe, Australia, and New Zealand.
“For us, to survive, we have to achieve at least 500,000 to 1 million units of annual sales globally,” Zhu said. “It would take at least two to three years for us to achieve that. The auto industry has to be consolidated. The top 10 automakers in the world all have annual sales of more than 4 million units. It is hard to achieve such a scale in China alone. Therefore, globalization is a must.”
Zhu added that Leapmotor is speaking with foreign car manufacturers to license its EV platforms as well as battery and motor technologies. While he did not state which car manufacturers the brand has spoken with, recent reports indicate that it has held serious discussions with both VW and Stellantis.
Read: VW In Talks With China’s Leapmotor About Using Its Tech On Jetta Brand
In early August, industry insiders revealed that VW is looking to revitalize its ailing Jetta brand in China through a partnership with Leapmotor. It is understood the German firm could purchase a platform of EV technologies from Leapmotor. Meanwhile, separate reports indicate that Stellantis is also interested in working with the Chinese startup to expand its presence in China.
