Leapmotor founder and chief executive Zhu Jiangming has warned against loss-making price competition in China’s electric vehicle market, saying automakers must maintain gross margins even as rivalry intensifies and prices come under pressure.
In a recent interview with People’s Daily, Zhu said selling vehicles at a loss is unsustainable. “Carmakers must never sell cars at a loss; we have to keep a gross margin — that’s something we’ve always insisted on,” he said. Zhu added that companies should rely on market-based mechanisms, improve product quality and reduce costs through scale and efficiency so that both the industry and consumers benefit.
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Zhu said China’s new-energy vehicle sector will continue to grow rapidly over the next several years, forecasting that NEVs could account for 80% to 90% of China’s auto sales within three to five years. He also said Chinese NEVs are likely to gain wider international adoption, citing advantages in cost efficiency, user experience and intelligent features.
“Globally, thanks to their cost efficiency, user experience and intelligent features, NEVs will gradually penetrate many countries, with broad growth prospects,” Zhu said.
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Commenting on the growing public profiles of automotive executives, Zhu said product strength remains the decisive factor. “For a company, the most important thing is to get the product right,” he said, adding that promotion only becomes effective when supported by strong technology and competitive products.
Leapmotor’s comments come as the company reported strong full-year delivery growth in 2025, even as momentum slowed toward the end of the year amid a broader downturn in China’s auto market. The company said it delivered 60,423 vehicles in December, down 14.1% from November but up 42.1% year-on-year. Fourth-quarter deliveries reached 201,039 units, representing a 66.3% increase from a year earlier and a 15.6% rise from the previous quarter.
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In December, Leapmotor also disclosed that it had secured a strategic investment from China FAW Group, a rare case of a major state-owned automaker taking an equity stake in a privately held new energy vehicle company. In a filing to the Hong Kong stock exchange, Leapmotor said it would issue 74.83 million new domestic shares to FAW Equity Investment, a wholly owned subsidiary of FAW Group, at 50.03 yuan per share, raising about 3.74 billion yuan ($530 million).
The company has continued to expand its retail footprint, saying earlier this month that it had opened 85 new stores. As of January 4, 2026, Leapmotor operated 1,068 sales and service outlets nationwide, supporting its push toward higher volumes.
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Looking further ahead, Leapmotor has set out ambitious long-term targets. At its 10th anniversary event in December, Zhu said the company aims to sell four million vehicles annually within the next decade, with the goal of becoming a “respected world-class smart electric vehicle manufacturer” as it expands both domestically and overseas.