The Stellantis and Leapmotor joint venture has begun production of the Chinese automaker’s electric vehicles at Stellantis’ plant in Tychy, Poland. Jefferies analysts, referring to statements from Leapmotor’s management, reported that the first units of the T03 model were produced at the plant last week. Additionally, mass production is expected to start in September.
Stellantis has started production of Leapmotor vehicles at its plant in Tychy, Poland
Stellantis had chosen its Polish plant as the first production base in Europe for Leapmotor cars, primarily for cost-saving reasons. Stellantis and the Chinese automaker have created a joint venture, led by Stellantis with a 51 percent stake, giving the Group exclusive rights to build, export, and sell Leapmotor products outside of China.
Called Leapmotor International, the joint venture is part of a broader cooperation between the two groups, which sees Stellantis acquiring a 20 percent stake in the Chinese automaker with a $1.6 billion deal. Jefferies stated that the joint venture plans to produce a second model at Stellantis’ Polish plant, the A12 SUV, starting from the first quarter of 2025. Leapmotor has also begun preparing for the localized production of components, it added.
Management reported that production costs per vehicle at the Polish plant are around 500 euros, figures comparable to those of Leapmotor’s main plant in China and significantly lower than the approximately 1,000 euros needed in Italy, for example. Leapmotor plans to produce its C10 SUV in China and initially export it to Europe, as this model could be marketed at a higher price. Recently, the European Commission announced the introduction of additional tariffs, up to 38 percent, on imported Chinese electric vehicles, which will come into effect starting from July, which will also affect Leapmotor.