China’s FAW Group is close to finalising an equity investment in electric vehicle maker Leapmotor, though the state-owned automaker is now expected to take a smaller stake than previously discussed, as Leapmotor continues to post record monthly vehicle deliveries.
People familiar with the matter said FAW is now planning to acquire around 5% of the Stellantis-backed automaker, about half the level earlier market speculation had suggested. Discussions between the two companies began earlier this year following the launch of their first joint vehicle project in spring 2025, and signing is expected later this year.
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Leapmotor founder, chairman and chief executive Zhu Jiangming has confirmed that negotiations are ongoing but stressed that the transaction would not dilute management’s authority. “The company will not relinquish actual control,” Zhu said.
Leapmotor’s largest shareholder remains Stellantis Group, which bought into the company in 2023 and currently holds 21.26%. Zhu and other founders together control about 25.8% through direct and indirect holdings, according to industry data. While no single investor holds majority ownership, the current structure allows the founding team and Stellantis to retain effective control of strategic decisions.
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The investment talks come as Leapmotor continues to report rapid growth. The company delivered a record 70,327 vehicles in November, marking its seventh consecutive month of all-time highs. That figure represented a 75.08% increase from a year earlier and a slight 0.05% rise from October’s previous record, according to company data. From January through November, Leapmotor delivered 536,132 vehicles, up 113.42% from the same period a year earlier.
Leapmotor has also strengthened its financial performance. In the third quarter, the company reported revenue of 19.45 billion yuan ($2.36 billion), up more than 97% from a year earlier and nearly 37% from the previous quarter. Vice President Li Tengfei has projected net profit of about 5 billion yuan for the coming year.
For FAW, the potential investment comes as pressure mounts to narrow the gap between its electric vehicle sales and broader market trends. New Energy Vehicles currently account for about 10% of FAW’s total sales, compared with roughly 50% of China’s overall new-car market. Leapmotor, which focuses exclusively on battery-electric and range-extender vehicles, is seen as a possible source of technical know-how as FAW accelerates its transition.
Source: carnewschina.com
