Leapmotor, a newcomer in the European automotive scene, is gaining traction with a €1.5 billion investment from Stellantis to enhance its vehicle distribution. The electric SUV B10 is set for mass production in Spain by early 2026, amid rising EU tariffs on Chinese imports. As Leapmotor aims to boost local sourcing, uncertainty remains about its eligibility for France’s ecological bonus and potential cooperation with Stellantis facilities in Germany and Slovakia.
Leapmotor, a relatively new player in the European automotive market, is gradually establishing its presence. Founded in 2015, this innovative brand made its debut in France in 2022 with the introduction of the compact electric city car, the T03, which we had the chance to test drive. Initially available through an independent importer, Leapmotor’s trajectory changed when the Stellantis group stepped in.
Leapmotor’s Strategic European Investment
In a significant move, the Franco-Italian automotive giant Stellantis has committed a staggering 1.5 billion euros to partner with Leapmotor. This investment aims to foster synergies and facilitate the distribution of Leapmotor vehicles across Stellantis’ extensive network. At the recent Paris Motor Show, the brand showcased its latest innovation, the electric SUV known as the B10, and new insights about its launch in dealerships have surfaced.
According to reports from the British news agency Reuters, anonymous sources indicate that mass production of the B10 is set to commence in the first quarter of 2026. Additionally, details surrounding its manufacturing location have emerged, confirming that the B10 will be manufactured in Europe instead of China. This decision is largely influenced by the European Union’s imposition of heightened tariffs on electric vehicles produced in China.
In light of these tariffs, it makes sense for Leapmotor to set up production in Europe, with Spain identified as the chosen location. As reported by Reuters, the Chinese embassy has verified plans for Leapmotor and Stellantis to invest 200 million dollars in a factory in Spain.
Production Developments and Future Outlook
This factory is expected to be situated near Zaragoza in northeastern Spain. However, further specifics regarding the facility remain undisclosed at this time. Leapmotor is keen on maximizing this investment and has intentions to significantly boost its procurement from Spanish suppliers. The overarching aim is to secure as many government subsidies as possible, although this has yet to be officially confirmed by Leapmotor representatives.
While we await definitive word from the manufacturer, it’s worth noting that the company has been somewhat tight-lipped. The initial plans for production in Poland have been shelved, following directives from the Chinese government encouraging reduced investments in select European nations due to rising import tariffs. This situation poses challenges for brands from China, as Poland appears to support these new trade measures.
Furthermore, it’s uncertain whether the Leapmotor B10 will qualify for the ecological bonus in France. Clarity is still needed on whether the vehicle will be manufactured in Europe or merely assembled there, similar to the approach taken by Xpeng for its electric cars. Without full production in Europe, the vehicle might miss out on financial incentives, especially as the French government tightens regulations to deter the importation of kit cars for assembly within the region.
Reuters also notes that Leapmotor may explore cooperation with Stellantis factories located in Germany and Slovakia. In contrast, Spain is becoming a magnet for various companies due to its low labor costs. For instance, the Chinese battery manufacturer CATL is establishing its factory in Spain to provide lithium-iron-phosphate (LFP) battery packs for Stellantis. Meanwhile, the automotive brand MG is also contemplating Spain as a viable option for its electric vehicle production.