Leapmotor Sets Ambitious Sales Target of 500,000 Vehicles for 2025
Leapmotor, a Chinese new energy vehicle (NEV) maker backed by Stellantis NV, announced its bold sales target of 500,000 vehicles for the full year of 2025. The company aims to achieve an average monthly sales volume of 40,000 vehicles to meet this ambitious goal, as revealed during its third-quarter earnings call.
To reach this target, Leapmotor is focusing on expanding production capacity and accelerating channel construction. Currently, the company boasts 698 stores across China, with plans for further expansion in the near future.
In its recent earnings report, Leapmotor expressed confidence in surpassing its full-year sales target of 250,000 units for the current year. The third quarter saw a remarkable achievement with the delivery of 86,165 vehicles, marking a significant increase of 94.39 percent year-on-year and 61.70 percent from the previous quarter.
The company reported record revenue of 9.86 billion yuan ($1.36 billion) in the third quarter, showcasing a growth of 74.3 percent year-on-year and 83.9 percent from the second quarter. Moreover, Leapmotor achieved a record gross margin of 8.1 percent in the third quarter, surpassing its previous high of 6.7 percent in the fourth quarter of 2023.
Looking ahead to 2025, Leapmotor anticipates its gross margin to exceed 10 percent. The company’s production capacity is currently constrained by the demand for its B-series models, with two factories operating at full capacity in Jinhua, Zhejiang province. To address this limitation, Leapmotor is expediting the construction of a new plant in Hangzhou, Zhejiang province, slated to commence production in the first half of the upcoming year.
In a bid to further enhance its manufacturing capabilities, Leapmotor is considering the establishment of a third plant in Jinhua, which could potentially increase its total design capacity to one million units by the end of 2025.
While the European market contributed over 6,000 units to Leapmotor’s sales in the third quarter, the company acknowledged the challenges posed by tariffs on EVs from China. Despite these obstacles, Leapmotor remains committed to international expansion and recently unveiled its new model, the B10, at the Paris auto show. The B10, built on the Leap 3.5 architecture, is set to debut in China at the Guangzhou auto show on November 15, with sales expected to commence in March 2025.
In addition to the B10, Leapmotor plans to launch the sedan B01 and hatchback B05 next year, expanding its product portfolio to cater to a diverse range of customer preferences.
Established in 2015, Leapmotor has emerged as a prominent player in China’s automotive industry, offering a lineup of battery electric vehicle (BEV) and extended-range electric vehicle (EREV) models. With a strong focus on innovation and growth, Leapmotor continues to push boundaries and set new benchmarks in the rapidly evolving NEV market.
(Source: CnEVPost)
