Leapmotor (09863.HK) management revealed in an earnings call that the company sold 293,700 vehicles in 2024, doubling its sales from the previous year, and in 2025, Leapmotor aims to further increase its sales to between 500,000 and 600,000 units.
Founded in 2015, Leapmotor went public in Hong Kong in September 2022, becoming the fourth listed EV startup after NIO, XPeng, and Li Auto. The company’s market performance has steadily improved in recent years, with annual sales rising from 111,100 units in 2022 to 144,100 in 2023 and 293,700 in 2024.
In 2024, the company recorded a revenue of 32.16 billion yuan, a 92% year-on-year surge, while its gross margin improved by 7.9 percentage points to 8.4%. In the fourth quarter alone, Leapmotor achieved record-breaking results, with monthly sales exceeding 40,000 units and a gross margin of 13.3%, marking its first-ever quarterly profit with a net income of 80 million yuan.
For the full year 2024, Leapmotor posted a net loss of 2.82 billion yuan, narrowing by 1.4 billion yuan from the previous year. The company aims to achieve positive net profit for the entire year in 2025.
Product Strategy: Expansion into Lower-Priced Segments
Leapmotor’s core product lineup includes the A, B, C, and D series, with progressively larger sizes and higher prices. The C series, the company’s earliest product line, focuses on mid-to-large SUVs and has already launched four models. In 2024, C-series deliveries reached 225,000 units, up 112.9% year-on-year, accounting for more than three-quarters of total sales.
In 2025, Leapmotor will shift its focus to the more affordable B series, targeting the 100,000–150,000 yuan market segment, the largest in China. The first B-series model, the B10, began pre-sales on March 10, with additional models such as the mid-size sedan B01 and the sporty hatchback B05 to follow.
On March 11, Leapmotor CEO Zhu Jiangming said that the company expects the B series to match or even surpass the C series in market performance by the end of 2026. In that year, Leapmotor also plans to launch the higher-end D series (200,000–300,000 yuan) and the entry-level A series.
The B10 has a starting price of 109,800 yuan, reinforcing Leapmotor’s reputation for value-for-money offerings. It comes in five configurations, with the laser radar-assisted driving version, which offers a 510-km range, priced at 129,800 yuan. Previously, laser radar technology was mostly found in models priced above 200,000 yuan, but as costs decline and automakers push for affordability, laser-equipped models are now entering the sub-RMB 150,000 segment. Notably, over 50% of B10 pre-orders on March 10 were for the laser radar version.
Leapmotor projects a 10%–12% gross margin in 2025, a figure considered conservative by the market. “Our biggest challenge remains market competition, as price wars continue to escalate,” Zhu said.
Overseas Expansion and Localization in Europe
Leapmotor’s 2025 sales target includes around 50,000 units from overseas markets. In May 2024, the company formed a joint venture, Leapmotor International, with global automaker Stellantis to drive its international expansion. Its first export models were the T03 and C10, with a total of 13,000 vehicles shipped by the end of 2024.
The B10 is also set for overseas markets, with exports beginning in July 2025. Due to shipping logistics, deliveries to European customers are expected in the fourth quarter. However, the T03 and C10 will remain Leapmotor’s main export models in 2025.
In the long run, Leapmotor aims to deepen its presence in Europe through localized production. Since October 30, 2024, the EU has imposed a five-year anti-subsidy tariff on Chinese EVs. Leapmotor, classified as a non-sampled but cooperating manufacturer, faces a 20.7% tariff in addition to the standard 10% import duty, bringing the total tariff burden on its European exports to 30.7%.
Zhu said that “With a 30.7% tariff and an additional 10% shipping cost, our competitiveness is significantly affected. Our top priority now is to achieve local production in Europe by the second or third quarter of 2026.”