5 months after signing a strategic cooperation settlement, China FAW Group, one of many nation’s largest automotive producers, is reportedly shifting ahead with plans to accumulate roughly a ten% fairness stake in rising electrical automobile (EV) maker Leapmotor. This transfer is ready to ascertain FAW Group as a strategic shareholder in Leapmotor, aiming for complete useful resource synergy throughout the whole business chain.
Based on Chinese language media Cailian Press on August 20, the proposal for FAW Group to accumulate round 10% of Leapmotor shares is at the moment “circulating and advancing” inside related departments at FAW.
The deliberate acquisition follows a “Strategic Cooperation Memorandum of Understanding” signed by China FAW Group and Leapmotor on March 3. This memorandum outlined a two-pronged strategy: first, leveraging each events’ technical experience in analysis and improvement for the joint improvement of recent power passenger automobiles and elements to boost product competitiveness; and second, exploring the feasibility of deeper capital cooperation to attain full business chain useful resource synergy.
Simply 20 days after the preliminary settlement, Leapmotor Expertise Co., Ltd. was confirmed because the profitable bidder for the “Hongqi model G117 product full automobile joint improvement and platform licensing charge expertise procurement” by way of FAW Group’s digital bidding platform.
Based on Leapmotor’s monetary reviews, their inaugural co-developed automobile mission with FAW Group has been launched, with subsequent work actively progressing. Insiders quoted by Cailian Press point out that discussions are underway for extra automobile cooperation initiatives, with the primary Leapmotor-Hongqi co-developed mannequin at the moment in improvement and slated for an abroad market launch within the second half of subsequent 12 months, utilising FAW’s worldwide distribution channels.
Leapmotor’s monetary efficiency within the first half of 2025 seems to be a key think about FAW Group’s funding curiosity. The corporate reported a income of 24.25 billion yuan (3.37 billion USD), marking a 174.0% year-on-year improve. Its gross margin improved to 14.1%, up 13 proportion factors from 1.1% in the identical interval of 2024. Moreover, Leapmotor achieved a internet revenue of 30 million yuan (4.17 million USD) for the primary half of 2025, turning worthwhile in comparison with the earlier 12 months.
About Leapmotor
Leapmotor is a Chinese language startup vehicle producer that specialises in growing electrical automobiles (EVs). The corporate was based in 2015 and is headquartered in Hangzhou, China. In October 2023, Stellantis invested 1.5 billion euros to accumulate roughly 20% of Leapmotor, making it a shareholder. Following the discharge of this information, its shares (09863.HK) rose by 1.6%, earlier than retreating. As of publication, the shares have been up 0.15%.
About FAW
FAW is China’s first automotive manufacturing plant, with its origins relationship again to July 15, 1953, when it was established because the First Car Manufacturing unit. Following the discharge of this information, its shares (000800.SZ) rapidly surged by 10% (reaching the utmost every day acquire permitted for shares in its sector), earlier than retreating. As of publication, the shares have been up 6%.
