Carlos Tavares is actively returning to China, having announced a strategic partnership with the Chinese electric car manufacturer Leapmotor. This strategy is a continuation of the group’s plans to reduce its presence in the Chinese market of thermal vehicles, while taking advantage of the growth of electrification.

This decision marks a turning point in the Chinese policy of Stellantis, which now intends to position itself as a key player in the electric vehicle market in China after a very difficult period.

A win-win for Stellantis and Leapmotor?

Stellantis announced €1.5 billion investment in Leapmotor, which gives her a 21.3% stake in this young Chinese company. The goal is clear: to support Leapmotor’s international offensive with an eye on Europe.

The CEO of Stellantis expressed optimism about this cooperation: “By becoming a shareholder of Leapmotor, we respond to the completion of our strategy, benefiting from Leapmotor’s competitiveness both in China and abroad. »

But that’s not all. The two companies also formalized the establishment of a joint export venture called Leapmotor International. Stellantis will own a majority of 51% of the shares and will act as a leader. This joint venture will be responsible for the production, export and sale of Leapmotor models outside of China, with plans to enter Europe from the second half of 2024.

Leapmotor, which currently sells 10,000 EVs every month in China, is one of several Chinese manufacturers focusing exclusively on EVs. They are already at the gates of the European market, where Leapmotor managed to sell 200 cars of its T03 model in France.

Is prevention better than cure?

The announcement is a significant shift in Carlos Tavares’ China strategy. Aware of the threat of Chinese competition on the European market, the latter prefers to become “an active participant in this offensive, not its victim”.

Stellantis’ main asset in this new venture will be the competitive pricing of future EVs, a key aspect as the European industry struggles to produce affordable EVs. Thus, in the coming years we should see new synergies between these two companies to develop new technologies related to electricity.

As we mentioned on Auto Plus a few days ago, Stellantis can license the new LEAP 3.0 platform, designed for 100% electric and hybrid models. Enough to seriously save and benefit from competitive technologies in the Chinese market, especially advanced in this field.

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