BUSINESS

FAW Takes 5% of Leapmotor in $527 Million Bet on EV Future

Published: Dec. 30, 2025 11:41 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Leapmotor, founded in 2015, has recently posted strong performance. Photo: VCG

Chinese electric-vehicle startup Zhejiang Leapmotor Technology Co. Ltd. will sell a 5% stake to China FAW Group Corp. Ltd. for 3.7 billion yuan ($527 million), strengthening ties with the state-owned carmaker as it aims to sharpen its edge in the increasingly competitive EV market.

Leapmotor said in a Monday filing that it would issue about 74.8 million new A-shares to FAW at 50 yuan apiece — a slight premium to its recent average closing price in Hong Kong. The subscription agreement was signed Sunday.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

FAW Group will buy a 5% stake in EV startup Leapmotor for 3.7 billion yuan ($527 million), deepening their partnership.
Leapmotor delivered 536,000 vehicles in the first 11 months of 2025, up 110%, and is nearing full-year profitability.
Stellantis’ stake will dilute from 21% to 19% after the deal; Leapmotor aims for 4 million annual sales in 10 years.

AI generated, for reference only

Who’s Who

Zhejiang Leapmotor Technology Co. Ltd.: Zhejiang Leapmotor Technology Co. Ltd. is a Chinese electric-vehicle startup. They are selling a 5% stake to China FAW Group Corp. Ltd. for 3.7 billion yuan ($527 million) to strengthen their position in the EV market. Founded in 2015, Leapmotor has shown strong performance, delivering 536,000 vehicles in the first 11 months of 2025. They are nearing full-year profitability, reporting 150 million yuan in net income in the third quarter.

China FAW Group Corp. Ltd.: China FAW Group Corp. Ltd. is a state-owned carmaker that has invested 3.7 billion yuan ($527 million) for a 5% stake in Zhejiang Leapmotor Technology Co. Ltd. to strengthen its presence in the EV market. This deal offers FAW a path to EV expansion and technology acquisition, aligning with its strategy to tap external innovation.

Stellantis NV: Stellantis NV invested €1.5 billion ($1.75 billion) in Leapmotor in October 2023, acquiring slightly over a 21% stake. Following a new deal, Stellantis's holding in Leapmotor will be diluted to 19%. The company has stated it is not seeking to control Leapmotor.

FAW's Qixing Power: FAW's Qixing Power unit, established in June 2025, recently signed an agreement with Leapmotor. They will jointly develop and produce plug-in hybrid and extended-range powertrains. This collaboration is part of FAW's strategy to enhance its presence in the new-energy vehicle sector by leveraging external innovation.

ZYT: ZYT is an autonomous driving supplier that China FAW Group Corp. Ltd. invested over 3.6 billion yuan in during November, making FAW its largest single shareholder.

AI generated, for reference only

What Happened When

2015：: Leapmotor was founded.

2020：: The FAW-Leapmotor partnership was established.

October 2023：: Stellantis invested €1.5 billion in Leapmotor for a stake of just over 21%.

March 2025：: The FAW-Leapmotor partnership deepened with a joint EV development agreement.

June 2025：: FAW's Qixing Power unit was established.

2025：: Stellantis's holding in Leapmotor projected to be diluted to 19%.

2025：: Leapmotor expected to achieve near full-year profitability; reported third-quarter net income of 150 million yuan on 19.5 billion yuan in revenue.

By end of November 2025：: Leapmotor delivered 536,000 vehicles in the first 11 months of 2025.

By end of November 2025：: FAW’s vehicle sales grew 4.7% to 3 million units in the first 11 months of 2025.

November 2025：: FAW pledged more than 3.6 billion yuan to autonomous driving supplier ZYT, becoming its largest single shareholder.

December 28, 2025：: Leapmotor and FAW signed the subscription agreement for FAW to acquire a 5% stake in Leapmotor; Leapmotor also signed an agreement with FAW's Qixing Power unit to jointly develop and produce plug-in hybrid and extended-range powertrains; Zhu outlined a goal to reach 4 million units in annual sales within a decade at a company event.