Leapmotor, a Chinese new energy vehicle (NEV) manufacturer backed by Stellantis NV, has reported a strong financial performance in the third quarter of this year. The company exceeded expectations with record revenue of RMB 9.86 billion ($1.37 billion), marking a 74.3 percent increase year-on-year.
The impressive financial results were driven by higher product deliveries and the successful launch of the C16 model, which contributed to an increase in the average selling price of the product portfolio. In the third quarter, Leapmotor delivered a record 86,165 vehicles, a significant increase of 94.39 percent year-on-year.
Sales of the higher-priced C-series models accounted for 78.3 percent of the quarter’s sales, showcasing the success of Leapmotor’s product strategy. The C-series models, powered by Leapmotor’s Leap 3.0 technology architecture, have been well-received in the market.
The launch of the C16 model, which offers both battery electric vehicle (BEV) and extended-range electric vehicle (EREV) options, further boosted sales and attracted more customers to the brand. Despite the launch of the C16, sales of the existing C10 and C11 SUVs remained strong, indicating the company’s ability to expand its product line without cannibalizing existing sales.
Leapmotor reported a net loss of RMB 690 million in the third quarter, a 30 percent decrease year-on-year. The company achieved a record high gross margin of 8.1 percent, surpassing previous records and indicating improved operational efficiency.
In terms of research and development, Leapmotor invested a record RMB 780 million in the third quarter, focusing on new models, parts programs, and smart driving technology. The company is committed to innovation and continuous improvement to stay competitive in the rapidly evolving NEV market.
Looking ahead, Leapmotor aims to exceed its full-year sales target of 250,000 units and expects to maintain a steady upward trend in gross margin in the fourth quarter. The company will continue to introduce new models, with the upcoming launch of the B10 SUV built on the Leap 3.5 architecture scheduled for November 15.
In conclusion, Leapmotor’s strong financial performance in the third quarter reflects its strategic focus on product innovation, efficient operations, and market expansion. With a promising outlook for the remainder of the year, Leapmotor is poised to solidify its position as a key player in the Chinese NEV market.