Stellantis is within the means of forming a complete strategic partnership with Leapmotor, a Chinese language EV firm that was established in 2015 and final yr offered roughly 111,000 automobiles in its house market.

In a deal introduced final week, Stellantis will make investments 1.5 billion euros (roughly $1.6 billion) to buy a 20% stake in Leapmotor. The transfer will make Stellantis a key shareholder in Leapmotor alongside Shanghai Electrical Group and Sequoia Capital.

Stellantis and Leapmotor can even type the three way partnership Leapmotor Worldwide, of which Stellantis will personal a 51% stake. The three way partnership will likely be accountable for the export and sale, in addition to manufacturing, of Leapmotor automobiles outdoors of China. The primary exports are scheduled for the second half of 2024, with Europe named as the primary vacation spot.

Among the many first fashions to be exported would be the Leapmotor C10, an electrical crossover that debuted in September on the 2023 Munich auto present.

Stellantis CEO Carlos Tavares (left) and Leapmotor CEO Zhu Jiangming

Stellantis and Leapmotor mentioned they continue to be open to exploring additional synergies, which might result in sharing of platforms and joint-development of fashions—much like the deal between Volkswagen Group and China’s Xpeng that was introduced in July.

In asserting the take care of Leapmotor, Stellantis CEO Carlos Tavares mentioned he expects consolidation amongst Chinese language EV manufacturers to unfold within the years forward and that solely a “handful of environment friendly and agile” gamers will come to dominate the Chinese language market, considered one of which is Leapmotor, he added.

Tavares additionally warned earlier this yr that European automakers specifically face a tricky problem from Chinese language automakers as a consequence of decrease manufacturing prices in China. Not like the U.S., Europe does not place steep tariffs on Chinese language-built automobiles.

Overseas automakers are additionally dropping market share in China, which they as soon as dominated, principally as a consequence of a scarcity of EV choices. Chinese language automotive firms accounted for 53% of gross sales in China within the first half of 2023, in line with the China Affiliation of Vehicle Producers.