The Leapmotor-Stellantis partnership will start electric vehicle production at the Tychy plant in Poland, marking a pioneering move for a Chinese automaker in Europe. This partnership is set to introduce Leapmotor’s T03 small EV car, with production slated to begin by the end of June, leveraging the semi-knocked down (SKD) method for assembly.

Strategic Manufacturing Move

The choice of Tychy for this operation stems from a joint venture agreement between Leapmotor and Stellantis last year. The plant’s selection was influenced by the aim to keep costs low, making the T03 an affordable option for a wide customer base. Despite these developments, official comments from Stellantis and Leapmotor were not provided, with representatives from both companies remaining silent on the matter.

Expanding EV Portfolio

The T03 model, boasting a 280-kilometer range, is part of an expanding lineup that already sees availability in several European countries, including France, starting at approximately 20,000 euros. This model is a strategic component of Stellantis’ effort to bolster its range of affordable EVs, positioning it as a competitor against Renault’s Dacia Spring and BYD’s Seagull.

Furthermore, Leapmotor is gearing up to introduce the C10 SUV across major European markets, marking its first vehicle specifically tailored for international consumers.

The entry of Chinese EV manufacturers into the European market is heating up competition, prompting established carmakers to accelerate their own affordable electric offerings. This development comes against a backdrop of growing trade tensions and scrutiny over potential subsidies favoring Chinese EV producers.

A Strategic Alliance

In a significant move, Stellantis has secured a 21% stake in Leapmotor for $1.6 billion, aiming to bolster its footprint in China, the world’s largest automotive market. This partnership provides Stellantis with exclusive rights to manufacture, export, and distribute Leapmotor vehicles outside China, heralding a new era in Western and Chinese automotive collaboration

Chinese regulators have recently approved the joint venture, in which Stellantis holds a majority stake. While there was speculation about utilizing Stellantis’ Mirafiori complex in Italy for production, with a goal of 150,000 vehicles annually, the selection of the Tychy plant signals a strategic pivot. 

The site, a historical Fiat production hub, now serves as a key facility for producing various Stellantis models, including the Fiat 500 and the Jeep Avenger. 

The Leapmotor-Stellantis partnership represents a significant stride towards closer Sino-European automotive cooperation.

Image Source: Stellantis.com