Chinese EV Maker Leapmotor Taps Stellantis’ Spanish Plant for EU Production

Why It Matters

Local production cuts tariffs and costs, enabling Leapmotor to offer affordable EVs in Europe while giving Stellantis access to Chinese EV technology, reshaping competitive dynamics in the continent’s electric‑vehicle market.

Key Takeaways

• Leapmotor adds production line at Stellantis' Zaragoza plant for Opel EVs
• Joint venture gives Leapmotor 49% stake, Stellantis 51% in Leapmotor International
• Local EU assembly avoids 20.7% extra tariff, boosting price competitiveness
• Leapmotor aims to ship >150,000 vehicles outside China in 2026

Pulse Analysis

Chinese EV makers are turning to asset‑light overseas assembly to sidestep domestic overcapacity and high tariffs. Leapmotor, backed by a 21% stake from Stellantis, has already launched knock‑down plants in Myanmar and Malaysia and opened an R&D hub in Munich. The partnership leverages Stellantis’ manufacturing footprint and global supply chain, allowing Leapmotor to scale quickly without heavy capital investment. This mirrors moves by Geely and Great Wall, signaling a broader shift toward collaborative, low‑asset expansion.

The new production line at Stellantis’ Figueruelas facility in Zaragoza will assemble Opel‑branded electric SUVs and the B10 model for the European market. By localising output, Leapmotor sidesteps the EU’s additional 20.7% duty on Chinese‑built EVs, preserving its cost advantage—its vehicles already cost roughly half of comparable Tesla models. Early‑stage rollout could begin this year, positioning Leapmotor to meet its revised 2026 export target of over 150,000 units. The joint‑venture structure gives Leapmotor a 49% equity stake, aligning incentives with Stellantis’ push for affordable EVs.

For Stellantis, the deal injects Chinese battery and power‑train expertise, strengthening its electrification roadmap across brands like Peugeot and Fiat. Consumers benefit from a broader selection of lower‑priced EVs, potentially accelerating adoption in price‑sensitive EU segments. Competitors will feel pressure to replicate similar asset‑light models or deepen partnerships to stay relevant. As Chinese firms continue to repurpose idle Western plants, the competitive landscape may see a surge in locally assembled, cost‑effective EVs, reshaping market dynamics ahead of the 2030 EU emissions targets.