BUSINESS

Leapmotor Slashes 2026 Profit Target Despite Sales Surge

Published: Aug. 25, 2026 2:21 p.m. GMT+8

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Leapmotor showcases its new-energy vehicles at an auto show in Guangzhou, Guangdong province, on May 1, 2026. Photo: VCG

Zhejiang Leapmotor Technology Co. Ltd. slashed its full-year profit target by 40% even as first-half net profit surged, underscoring the intense pressure in the world’s largest auto market.

The Hong Kong-listed company’s net profit for the first six months of 2026 soared 600% year over year to 210 million yuan ($31.2 million), while revenue grew 57.2% to 38.1 billion yuan, according to its earnings report released Monday. Deliveries jumped 60.8% to 356,000 vehicles.

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Leapmotor cut its 2026 full-year profit target by 40% to ~3 billion yuan, despite H1 net profit soaring 600% to 210 million yuan.
China’s passenger car retail sales fell 20.3% to 10.2 million units in Jan-July 2026; industry profit margin hit 3.8% in H1.
H1 exports surged 372.6% to 96,000 vehicles, surpassing 2025’s total; full-year exports expected to exceed 150,000.

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Who’s Who

Zhejiang Leapmotor Technology Co. Ltd.: Zhejiang Leapmotor Technology Co. Ltd. cut its 2026 net profit target by 40% to ~3B yuan, despite first-half net profit surging 600% to 210M yuan on revenue of 38.1B yuan. Deliveries rose 60.8% to 356,000 vehicles. Gross margin fell to 11.7% due to rising costs. Exports surged via Stellantis partnership, with production expanding in Malaysia, Spain, and Brazil.

Stellantis N.V.: Stellantis N.V. is a partner of Zhejiang Leapmotor, having acquired a stake in the Chinese automaker for €1.5 billion in late 2023. This partnership supports Leapmotor's rapid overseas expansion, with exports surging 372.6% in the first half of 2026, helping counter domestic market pressures in China.

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What Happened When

Late 2023：: Stellantis N.V. acquired a stake in Leapmotor for 1.5 billion euros ($1.7 billion).

2025：: Industry profit margin stood at a historic low of 4.1%.

First half of 2026：: Net profit surged 600% year over year to 210 million yuan ($31.2 million); revenue grew 57.2% to 38.1 billion yuan; deliveries jumped 60.8% to 356,000 vehicles; gross margin shrank to 11.7%.

First half of 2026：: Leapmotor exported 96,000 vehicles, a 372.6% increase, surpassing its total overseas sales for all of 2025.

First half of 2026：: Industry profit margin dropped further to 3.8% from 4.1% in 2025.

First seven months of 2026：: China Passenger Car Association reported domestic retail sales of passenger cars fell 20.3% to 10.2 million units.

2026：: Zhejiang Leapmotor Technology Co. Ltd. revised its full-year net profit target to roughly 3 billion yuan, down 40% from the initial goal of about 5 billion yuan.