FAW Group is currently in the process of acquiring a stake in Leapmotor (HKG: 9863) in order to become a strategic shareholder, according to a recent report by local media outlet Cailian. The plan involves FAW making an initial offer to acquire approximately 10 percent of Leapmotor’s shares, with internal discussions already underway to advance this proposal.
The collaboration between Leapmotor and FAW began with the signing of a strategic cooperation memorandum of understanding on March 3 at FAW’s headquarters in Changchun, Jilin province. This partnership aims to jointly develop new energy vehicles (NEVs) for passengers and work together on various automotive components.
The first jointly developed vehicle project between Leapmotor and FAW is currently in progress, with both companies actively engaged in moving this initiative forward. Leapmotor has stated in its semi-annual financial report that the development of this project is underway, and both parties are exploring opportunities for deepening capital cooperation to enhance resource synergy across the entire industry chain.
Further discussions are ongoing regarding additional new vehicle cooperation projects between FAW and Leapmotor, as reported by Cailian. The first model resulting from the collaboration between Leapmotor and FAW’s Hongqi brand is currently under development and is scheduled for launch in the second half of next year through FAW’s overseas distribution channels.
Leapmotor has rapidly emerged as one of China’s fastest-growing automakers, delivering an impressive 221,664 vehicles in the first half of this year, marking a significant year-on-year growth of 155.68 percent. The company achieved a net income of RMB 30 million ($4.2 million) in the first half of 2025, marking its first positive net income in a half-year period.
In a separate report by Jiemian on July 24, it was revealed that FAW would collaborate with Leapmotor to develop new electric vehicle (EV) models based on Leapmotor’s B platform for sale in overseas markets. This mirrors Leapmotor’s existing partnership with Stellantis, which invested 1.5 billion euros in Leapmotor in 2023 to acquire approximately 20 percent of its shares.
Leapmotor has successfully expanded into 30 international markets through Stellantis’ sales network over the past two years, exporting more than 20,000 vehicles in the first half of this year alone. FAW had previously considered acquiring a Chinese NEV manufacturer before settling on a strategic partnership with Leapmotor.
In addition to its collaboration with FAW, Leapmotor is also set to work with FAW-Volkswagen, a joint venture between FAW and Volkswagen. This partnership is expected to result in the development and sale of new models in the domestic market based on Leapmotor’s technical architecture, similar to the cooperation model between Xpeng and Volkswagen.
Overall, the ongoing collaboration between FAW and Leapmotor signifies a significant step towards advancing the development of new energy vehicles and expanding their presence in both domestic and international markets. With a focus on innovation and strategic partnerships, both companies are poised to drive further growth and success in the evolving automotive industry.
