Leapmotor, a Chinese new energy vehicle (NEV) maker listed on the Hong Kong Stock Exchange (HKG: 9863), has recently entered the component supply business, following the footsteps of industry giant BYD (HKG: 1211, OTCMKTS: BYDDY). According to a report by local media outlet 36kr, Leapmotor has started supplying power battery packs to customers as a supplier, with its in-house developed battery packs sourced from battery manufacturers including CATL (SHE: 300750).
The business of supplying battery packs is managed by Leapmotor’s subsidiary Lingxiao Energy, which specializes in battery technology research and development. The subsidiary has already secured orders from more than five commercial NEV makers and is actively expanding its customer base. One of the manufacturers currently in advanced negotiations with Leapmotor is Seazon Motor.
The report highlights that receiving orders from multiple commercial vehicle manufacturers marks a significant milestone for Leapmotor’s components business. It also notes that collaborating with Leapmotor could help CATL increase its market share in the commercial vehicle sector.
Leapmotor has been experiencing rapid growth in its own NEV sales, with July deliveries surpassing 50,000 units for the first time. Year-to-date, the company has delivered 271,793 vehicles, a 149.84% increase compared to the previous year. In addition to focusing on vehicle sales, Leapmotor has been investing in independent research and development of core components.
The company’s strategy of selling vehicles while also supplying components to other manufacturers mirrors BYD’s successful model. Leapmotor aims to reduce costs and expand its market presence by emulating this approach. In recent years, Leapmotor has collaborated with leading automotive companies like Stellantis and FAW Group to develop new models and technologies for both domestic and international markets.
Notably, Stellantis acquired a 20% stake in Leapmotor in 2023, becoming the EV maker’s largest external shareholder. This partnership has led to the establishment of Leapmotor International, a joint venture focused on developing and selling electric vehicles in Europe. Additionally, Leapmotor has signed strategic cooperation agreements with FAW Group to jointly develop passenger NEVs and collaborate on components.
The report concludes that Leapmotor’s foray into supplying in-house developed battery packs to commercial vehicle manufacturers signifies a significant advancement in its component supply business. As the company continues to expand its customer base and strengthen its partnerships with key industry players, Leapmotor is poised for further growth and success in the competitive NEV market.
